That's a very interesting point. The ability to purchase units in the closed class - trading at a discount - and then reissue through the open class at NAV - would surely help with liquidity. Although, the net benefit to Magellan would be the same. That is, even if the units aren't redistributed - and the units are cancelled like with most closed funds when bought back - the underlying benefit of the discount is still available.
I can understanding why investors would still choose MGOC over MGF - the ability to redeem at NAV is still an overriding draw factor. Investors are sick of having sell closed units at a substantial discount to their underlying NAV. You are at the mercy of the secondary market. I would choose the open class units any day of the week over the closed class.
Each to their own.
You are right though - the ability to draw upon closed units trading at a discount and redistribute to open class - may have a very beneficial impact on those pesky discounts which just won't go away.
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That's a very interesting point. The ability to purchase...
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Last
$8.56 |
Change
0.110(1.30%) |
Mkt cap ! $1.547B |
Open | High | Low | Value | Volume |
$8.46 | $8.57 | $8.45 | $4.295M | 504.0K |
Buyers (Bids)
No. | Vol. | Price($) |
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1 | 1000 | $8.50 |
Sellers (Offers)
Price($) | Vol. | No. |
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$8.57 | 1248 | 2 |
View Market Depth
No. | Vol. | Price($) |
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1 | 1000 | 8.500 |
2 | 1293 | 8.450 |
1 | 75 | 8.440 |
3 | 3337 | 8.400 |
1 | 1000 | 8.380 |
Price($) | Vol. | No. |
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8.570 | 1248 | 2 |
8.580 | 3000 | 1 |
8.590 | 1000 | 1 |
8.600 | 7133 | 5 |
8.610 | 63 | 1 |
Last trade - 16.10pm 10/06/2024 (20 minute delay) ? |
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Last
$8.57 |
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Change
0.110 ( 1.42 %) |
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Open | High | Low | Volume | ||
$8.47 | $8.57 | $8.45 | 165769 | ||
Last updated 15.59pm 10/06/2024 ? |
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