Magellan closes FuturePay strategy
Magellan has terminated its retirement income-focused FuturePay strategy, effective from 20 July, just over a year after launching it.
FuturePay was a listed, actively-managed fund launched in June 2021 with an expected annual yield of 4.2%, it aimed to delivered a predictable monthly income with a focus on downside protection.
In a note to investors, seen by Money Management, the firm said it would return investors their capital in the fund and make an additional payment to those investors who would otherwise have received less than their original investment at the closure date.
Assets under management in the strategy were $18.7 million, as of 31 May, 2022.
The closure would take effect from Wednesday 20 July, 2022 and the firm said it was consistent with its strategy to simplify its business and concentrate on its core investment capabilities. This also included the sale of its stake in fast food chain Guzman y Gomez earlier this year.
The firm said: “FuturePay was developed to meet the needs of many investors for retirement income and its unique structure achieved this objective. However, given the current size and modest anticipated demand for FuturePay, the board of Magellan, having considered the alternatives, has determined that it is in the best interests of investors to return their capital and terminate FuturePay”.
Investors entitled to the June 2022 distribution would be paid on 15 July, 2022 and it was anticipated they would receive the final distribution in respect of units held on or about 27 July, 2022.
AUTHOR
Laura Dew
Recommended for you
With active ETFs becoming the latest choice as fund managers target the retail audience, their high fees may be a detractor as research finds investors are shunning those priced any higher than 50 bps.
The possibility of a dissenting vote from shareholder L1 Capital has led Platinum Asset Management to scrap its conversion plan for the $450 million Platinum Capital LIC into an ETF.
Family office Lederer Group has made an off-market takeover bid for ASX-listed Elanor Commercial Property Fund, with chair Paul Lederer taking exception at the firm’s lack of accountability, oversight and transparency.
Janus Henderson is actively seeking to partner with private wealth firms in Australia as it looks to expand its number of strategic partnerships, as well as focus on retirement income product development.
