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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Last
$9.44 |
Change
-0.050(0.53%) |
Mkt cap ! $1.706B |
Open | High | Low | Value | Volume |
$9.53 | $9.67 | $9.42 | $3.361M | 352.9K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 1229 | $9.44 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$9.45 | 1457 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 1000 | 9.410 |
1 | 2000 | 9.400 |
2 | 600 | 9.380 |
1 | 1550 | 9.370 |
1 | 108 | 9.260 |
Price($) | Vol. | No. |
---|---|---|
9.600 | 2000 | 1 |
9.640 | 230 | 1 |
9.650 | 3108 | 3 |
9.660 | 500 | 1 |
9.670 | 1700 | 2 |
Last trade - 16.10pm 12/07/2024 (20 minute delay) ? |
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