On 3 August 2020, Magellan Asset Management Limited announced a restructure proposal to simplify its global equities retail product offering. The restructure proposal, which was approved by unitholders on Wednesday, 25 November 2020, will have the effect of combining three existing funds, the Magellan Global Fund (the ‘Fund’), the Magellan Global Equities Fund (Managed Fund) (ASX: MGE) (‘MGE’) (an AQUA Product admitted to Trading Status) and the Magellan Global Trust (ASX:MGG) (‘MGE’) (an entity admitted to the Official List) into a single trust effected by way of two trust schemes (the ‘Restructure’).

The Restructure involves the proposed acquisition of all of the units in MGE and MGG by the Fund.

If the Restructure is implemented:

• eligible MGE unitholders will receive Open Class Units in the Fund, which is expected to be admitted to Trading Status as an AQUA Product under the ASX Operating Rules and quoted under ASX code: MGOC.

• eligible MGG unitholders will receive Closed Class Units in the Fund, which is expected to be admitted to the official quotation under the ASX Listing Rules and quoted under ASX code: MGF.

MGG Exchange Ratio

MGG Trust Scheme Participants will receive that number of Closed Class Units in Magellan Global Fund that is equal to the Exchange Ratio multiplied by the number of MGG Units that they hold at 7:00pm (Sydney time) on the MGG Trust Scheme Record Date being 1 December 2020.

The Exchange Ratio will be equal to one (1) and is calculated as the NAV of MGG per MGG Unit divided by the NAV of MGG per MGG Unit (the issue price of Closed Class Units under the MGG Trust Scheme), each as at the Effective Date.

The number of Closed Class Units received by MGG Trust Scheme Participants will be the same as the number of MGG Units they hold on the MGG Trust Scheme Record Date.

The Closed Class units in the Fund is expected to commence quotation on a deferred settlement basis on Monday, 30 November 2020 under ASX code: MGF.

MGE Exchange Ratio

MGE Trust Scheme Participants will receive that number of Open Class Units in the Fund that is equal to the Exchange Ratio multiplied by the number of MGE Units that they hold at 7:00pm (Sydney time) on the MGE Trust Scheme Record Date being 1 December 2020.

The Exchange Ratio for MGE Trust Scheme Participants is calculated as the NAV of MGE per MGE Unit divided by the NAV per Open Class Unit in the Fund, each as at the Effective Date, being Friday, 27 November 20202.

The number of Open Class Units received by MGE Trust Scheme Participants will be different to the number of MGE Units they hold on the Effective Date as a result of the calculation described above.

It is expected that the Exchange Ratio will be announced to the market before the commencement of trading of the Open Class Units in the Fund.

The Open Class units in the Fund is expected to commence quotation on a deferred settlement basis on Monday, 30 November 2020 under ASX code: MGOC.

What do I need to do by when?

Participants are reminded that an Exchange Ratio will be applied to the issue of MGF and MGOC units which will commence quotation on a deferred settlement basis.  It is expected that the units under these classes will be allotted on the implementation date, 8 December 2020.

For more information of the scheme consideration and timetable, please see the MGG and MGE Notice and Meeting and Explanatory Memorandum dated 21 October 2020.

Need more information?

Issued by

Cheng Zhang, Equity Operations

Contact information

Equity Operations
1800 814 051
chesshelp@asx.com.au

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