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$9.55 magellan financial group limited

Ann: Magellan Global Fund Partnership Offer Opens, page-8

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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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Last $9.55		Change 0.110(1.17%)		Mkt cap ! $1.726B

Open	High	Low	Value	Volume
$9.55	$9.60	$9.47	$3.245M	340.0K

Buyers (Bids)

No.	Vol.	Price($)
1	428	$9.54

Sellers (Offers)

Price($)	Vol.	No.
$9.56	464	1

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No.	Vol.	Price($)
3	1270	9.520
2	2601	9.510
3	6087	9.500
2	3456	9.490
1	1601	9.480

Price($)	Vol.	No.
9.580	2710	1
9.590	2771	3
9.600	2361	4
9.610	6601	2
9.620	1601	1

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