Magellan has announced its intention to transition its Magellan High Conviction Trust (ASX:MHH)
listed investment company into an active ETF.
If the transition is implemented, unit holders will be able to apply for and redeem units directly with Magellan. They will also be able trade on the ASX generally at a tight spread to net asset value.
Magellan chief executive Brett Cairns said “Magellan is continuously focused on ways to improve the experience of investors in our funds. On balance, we believe the benefits for unitholders of reducing the trading discount in MHH outweighs the benefits of MHH remaining as a closed-ended fund”.
“We believe transitioning the fund to an open-ended active ETF is in the best interests of investors as it will allow direct access to the fund for applications and redemptions and see the units in the fund trade at a tight spread to net asset value going forward.”
Shares in Magellan High Conviction Trust (ASX:MHH)
are trading 6.07 per cent higher at $1.66.