Magellan launches new trust
Magellan Financial Group has announced the launch of a new listed vehicle – the Magellan Global Trust.
The fund manager announced to the Australian Securities Exchange (ASX) today that it would undertaking an initial public offering for the trust which would be investing in a focused portfolio of high quality companies and intended to target a four per cent cash distribution yield.
The company’s announcement said the trust would invest in a focused portfolio of 15 to 35 companies and the mandate would be flexible enough to enable the trust to hold up to 50 per cent of the portfolio in cash.
Confirming the launch of the new vehicle, Magellan chief executive and chief investment officer, Hamish Douglass said the firm believed the Magellan Global Trust would be an attractive vehicle for investors making an investment in global equities.
“We believe retail investors value regular cash distributions and this has been missing in many global equity products,” he said. “We consider the target four per cent cash distribution yield differentiates this offering from many other global equity products.”
The offer will comprise of a priority offer and a broker firm/general public offer with the priority offer to be made to approximately 250,000 to 300,000 underlying Magellan shareholders and investors in Magellan retail strategies.
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