This is a really good question re: opening the closed MGF fund and I think it's part of the share price drag as it's creating some uncertainty. The reasoning for opening the fund makes sense holistically - holders can escape at NAV rather than the discounted price.
In doing this the obvious outcome is they lose FUM but potentially gain more respect from holders. But don't forget the current MGFO options, of which there are approximately a billion floating around, redeemable at a 7.5% discount to NAV. If they open the fund these options will trigger a near instantaneous hit of approximately $200m to the bottom line while making no change to FUM (assuming people rationally buy and sell until their options have been used up).
I'm bullish on both MGF and MFG but I do believe this is a factor weighing down the SP and may continue to for a while seeing as the options expire 2024.
@Clueso welcoming your thoughts on this too. There's a lot of smoke getting blown up Magellan in these forums at the moment but I don't think there's as little downside, at least in terms of opportunity cost as people think.
MFG Price at posting:
$34.72 Sentiment: Hold Disclosure: Held
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