Ann: MGF Fund Update - February 2021, page-482

First 482 Last

Share
Profile

Follow
cutty

3,474 Posts.

456

31/01/23

19:15

Post #: 65987107
Share
Originally posted by Hoarding: ↑

All well known points.

The size of MGF is only $2.5B. Magellan's overall FUM is 45B$. What would outflows be on MGF if it merged into open class ETF tomorrow? Maybe $1B?

The current open class ETF MGOC.asx has $7.5B FUM.

The persistent discount on MGF is not worth all of the investor relations drama.

Management would accept a $1B FUM drop given,
It is the ethically right thing to do
It allows 'trapped' investors to leave (this isn't a healthy relationship in which to build long-term clients)
It would have a positive impact of Magellan's now damaged image
They wouldn't have to allocate resources to investor relations specific to dealing with client discount concerns
The fund could be a target for another manager (eg. Wilson, Regal etc.). Having $1.5B FUM ($2.5B current MGF FUM less the $1B outflow on conversion) is better than zero.

I am certain of either one of the below happening in 2024 (once options expire):
1. The discount will be minimal
2. The fund will convert to an open class ETF (they will just merge MGF with MGOC).

Hotcopper should introduce a bet feature where users can take public, direct positions against each other.

Expand

I would love to agree, but have you looked at the LIC landscape in Australia - discount sagas, liquidity issues, tiny FUM...

If managers did the right thing... the majority of these would have been dissolved years ago.
MGF Price at posting: $1.39 Sentiment: None Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

C29

C29 Metals wins Kazakhstani uranium drill run green tick, Kazatomprom talks mature

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

PFE

Pantera begins drilling of maiden test well at Smackover

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

QHL

Aerospace smallcap Quickstep Holdings jumps nearly 100% after 40cps takeover offer

There are more pages in this discussion • 40 more messages in this thread...

First 482 Last

Add MGF (ASX) to my watchlist

Ann: MGF Fund Update - February 2021, page-482

Top Stories

C29 Metals wins Kazakhstani uranium drill run green tick, Kazatomprom talks mature

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

Pantera begins drilling of maiden test well at Smackover

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Aerospace smallcap Quickstep Holdings jumps nearly 100% after 40cps takeover offer

Featured News