Ann: Magellan Global Fund Partnership Offer Opens, page-34

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.