Magellan Global Fund Implements Conversion of Closed Class Units
MGO (MGO) Share Update July 2024 Monday 22nd
Magellan Global Fund Converts Closed Class Units to Open Class Units
Magellan Asset Management Limited (MAM), the responsible entity for the Magellan Global Fund (ASX: MGOC), has successfully implemented the conversion of its Closed Class Units to Open Class Units, following approval from unitholders.
Instant Summary:
- Conversion of Closed Class Units to Open Class Units approved by unitholders.
- Conversion Ratio set at 0.73604246 Open Class Units per Closed Class Unit.
- A total of 1,109,628,736 new Open Class Units issued.
- Post-conversion, the Fund has 3,102,994,010.9277 Open Class Units in total.
Conversion Details
On 22 July 2024, Magellan Asset Management Limited (MAM) announced the successful implementation of the conversion of Closed Class Units to Open Class Units for the Magellan Global Fund (ASX: MGOC). This decision follows the approval from unitholders during meetings held on 26 June 2024.
The Conversion Ratio was established at 0.73604246, meaning that eligible Closed Class Unitholders received 0.73604246 Open Class Units for every Closed Class Unit they held as of the Conversion Record Date on 15 July 2024.
Issuance of New Units
The conversion has resulted in the issuance of 1,109,628,736 new Open Class Units. Consequently, the total number of Open Class Units on issue in the Fund now stands at 3,102,994,010.9277.
Unitholder Approval
The conversion was a significant move, reflecting the strategic direction of MAM to streamline its unit structure and provide greater flexibility and liquidity to its investors. The approval from unitholders underscores their confidence in the management and future prospects of the Fund.
The conversion of Closed Class Units to Open Class Units is expected to have a positive impact on the liquidity and flexibility of the Magellan Global Fund. By consolidating the unit classes, the Fund aims to attract a broader range of investors, potentially boosting market interest and trading volume.
This strategic move is likely to enhance the Fund's appeal, as Open Class Units generally offer greater accessibility and ease of trading compared to Closed Class Units. As a result, the stock price of the Magellan Global Fund may experience a positive uptick as investors respond to the increased liquidity and simplified structure.
Investor Reaction:
Initial reactions from investors and analysts have been largely positive. Many see the conversion as a forward-thinking move that aligns with the Fund's long-term growth strategy. Analysts have noted that the increased liquidity and simplified unit structure could make the Fund more attractive to a diverse range of investors.
Conclusion:
Investors should keep an eye on the performance of the Magellan Global Fund in the coming weeks to gauge the market's response to this significant structural change. The conversion of Closed Class Units to Open Class Units is a strategic move aimed at enhancing liquidity and attracting a broader investor base. As always, staying informed and monitoring ongoing developments will be crucial for making well-informed investment decisions.