Has built in magnets,and internal coil, actualy has like a mini distributor plate inside. But no external. Coil or power source, needed for it to work. Drawback is fixed advance, can be harder starting. . I have not tried one yet, but Bill P is running one and reports no starting issues.
Some mags do have advance mechanisms, and impulse start, but this does not.
On some like Morris Magnetos (not the wheel maker) the mag could rotate on a swivel base to preset stop..at advanced position, then upon starting, would move back to running position.(aided by springs or your hand. On early bikes like Indian and Harley and most others, there was left side twist grip to retard the mag for starting.
So if your battery dies, or falls out or breaks, you can still ride it home...