Correct Grabeach, just like any open Fund the trust will be subject to redemptions/creations. As stated, this only becomes an issue when there is a need to redeem units, as there are no buyers to take up the freely available units.
The market maker will always try to buy/sell in the secondary market. However, there are obviously times the market just isn't there and they need to redeem the units through the trust to fulfil payment.
The market maker is only there because they are making money. If the bid price on the ASX goes above the NTA, they will happily go to the trust obtain the requisite amount of units and sell to the investor at a premium. Conversely, if the offer price drops below NTA they will happily buy those units and then redeem the units at NTA with the trust. Win/win.
MA1 Price at posting:
97.0¢ Sentiment: None Disclosure: Held
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