Hamish Douglass to Launch “Investor Friendly” Trust: Magellan Global Trust
agellan is planning to lure investors with a friendly fee structure, high dividend payout whilst offering loyalty units for existing investors.
Magellan CEO Hamish Douglass has a stunning track record of value creation and he is planning to add another gem to his portfolio with the launch of the Magellan Global Trust, a listed investment trust focussed on global equities. Magellan is planning to lure investors with a friendly fee structure, high dividend payout whilst offering loyalty units for existing investors.
Since establishment in 2006, Magellan’s philosophy has been to focus on global equities as the directors believe the Australian market is too small on a global scale; heavily reliant on the banking sector and China’s economy.
Incredibly, Magellan has elected to cover all of the offer costs in cash to allow MGG to list on par with its net asset value of $1.50. This is the second listing this year – after VGI Partners Global Investments – to introduce an “investor-friendly” fee structure. If successful, this could set the trend for many years to come.
The minimum raising is $250 million, which has already been reached but there’s no upper limit to this IPO. General market risks and the timing of the listing are the primary hurdles but Magellan has a favourable track record of value creation having increased its funds under management from $4 billion in 2012 to over $50 billion in 2017. Targeting a distribution of approximately 4% this listing is suitable for income hungry investors with a long-term horizon.
Magellan Global Trust
ASX Code: MGG
Shares on Offer: 166.66m (minimum)
Listing Price: $1.50
Market Capitalisation: $250m (minimum)
Listing Date: October 18
Author: Simon Herrmann
Sep 26, 2017
Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.