Magellan High Conviction to move to active ETF

Magellan LIT active ETF ETF

2 July 2021
| By Laura Dew |
image
image
expand image

Magellan has announced its intention to transition its Magellan High Conviction Trust (MHH) from a listed investment company to an active exchange traded fund (ETF).

In a statement to the Australian Securities Exchange (ASX), Magellan said it hoped the move would reduce the trading discount on the trust.

Subject to unitholder and regulatory approval, unitholders would be able to apply for and redeem units directly with Magellan and had the ability to buy and sell units on the ASX at a tight spread to net asset value.

Brett Cairns, chief executive of Magellan Financial Group, said: “On balance, we believe the benefits for unitholders of reducing the trading discount in MHH outweighs the benefits of MHH remaining as a closed-ended fund.

“We believe transitioning the fund to an open-ended Active ETF is in the best interest of investors as it will allow direct access to the fund for applications and redemptions and see the units in the fund trade at a tight spread to net asset value going forward.”

The trust was recently selected by Wilson Asset Management for its Strategic Value trust which sought trusts trading at a discount to net asset value.

Read more about:

AUTHOR

Recommended for you

 
sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

 

MARKET INSIGHTS

Old Fella

Of course a survey commissioned by an adviser coaching business would find that having an external business coach is a k...

3 hours ago
One foot out the door

A financial planner is expected to earn between $95,000 and $120,000 per year, depending on the state. Really? I don't...

13 hours ago
JOHN GILLIES

The whole thing is a bit frightening especially the last note where notes on what might be done could result in the need...

1 day 9 hours ago

ASIC has cancelled the AFS licence of a Sydney wealth firm, the fifth Sydney firm to see a cancellation since the start of the year....

1 week 6 days ago

A former financial adviser has been banned by ASIC from providing financial services for inappropriate advice, among multiple breaches....

4 weeks ago

More than 20 winners from the funds management industry have been crowned at this year’s awards....

6 days 11 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND