Ann: MGF Fund Update - February 2021, page-504

The options are exercised at a discount of 7.5% of NAV
The manager is funding the discount (not the Fund). This is a good thing.
The justification of the manager funding is that they are buying FUM. They pay a bit up front but the money comes back to them via management fees over the longer term.
If it was converted to an ETF before the options expire
- The options will be exercised, costing the manager money
- The newly minted shares can be sold straight away, denying the manager any long term benefit.

At the moment, assuming some sort of plan to move to an open class, there is no incentive for the manager to get the options exercised. In fact its opposite, it would be better for them if they weren't.