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$8.56 magellan financial group limited

Thanks. What about redemption for open fund, if management...

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20/01/21

10:21

Post #: 50297246
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Originally posted by cutty: ↑

They are trapped because the manager doesn't have to accept redemptions.

In an open fund, the manager is required to accept redemptions of units. They will often facilitate this through either cash holdings or the selling of stock.

In a closed fund - managers don't accept redemptions. You are at the mercy of the secondary market. That is, finding another investor willing to buy your stock.

This is the whole reason they often trade at significant discounts. If there is no one on the other side of the trade willing to pay at par with the NTA - tough luck.

Managers, just like Magellan and every other manager, love closed funds - because once the money is raised they don't have to worry about a flock of investors trying to redeem their units when performance comes up short.

That's why it's called trapped.

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Thanks.
What about redemption for open fund, if management accept it, what price they are paying-current NAV or other?
Is fixed qty of max redemption per day, or just their wish?
Also, do you know any other open funds, which I can found on ASX?

MFG Price at posting: $49.82 Sentiment: None Disclosure: Not Held
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(20min delay)
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($)
2	1352	$8.55

Sellers (Offers)

Price($)	Vol.	No.
$8.57	2765	3

View Market Depth

No.	Vol.	Price($)
1	1000	8.500
2	1293	8.450
1	75	8.440
3	3337	8.400
1	1000	8.380

Price($)	Vol.	No.
8.570	1248	2
8.580	3000	1
8.590	1000	1
8.600	7133	5
8.610	63	1

Last trade - 16.10pm 07/06/2024 (20 minute delay)


Last $8.57			Change 0.110 ( 1.42 %)
Open	High		Low	Volume
$8.47	$8.57		$8.45	165769
Last updated 15.59pm 07/06/2024 ?

MFG (ASX) Chart