The Magellan Financial Group Ltd (ASX: MFG) share price managed to rise 0.5% after making an announcement to the market.
Magellan is a funds management business that largely invests in international shares like Facebook and Visa. It was set up in 2006 by Hamish Douglass and Chris Mackay. Since inception, Magellan claims it has been one of the most consistent market outperformers after fees.
Magellan’s Exciting News
Earlier today, the global fund manager announced the indicative raising size of its Magellan High Conviction Trust.
At the closure of the initial public offering, Magellan said that the Magellan High Conviction Trust had indicatively raised $862 million. That’s a lot of fixed money that Magellan will now be earning an attractive management fee from.
Magellan also disclosed that the estimated costs of the offer, including the loyalty units and IPO foundation units, that will be paid for by Magellan are around $55 million.
Magellan Chairman and Chief Investment Officer (CIO) Hamish Douglass said: “We are very pleased with the successful initial public offering for the Magellan High Conviction Trust which has raised approximately $862 million.
“We received applications from approximately 17,000 investors participating in the Priority Offer and 1,800 investors participating through the General Public and Wholesale Offers. We welcome each and every investor and look forward to continuing our partnership over the years to come. We firmly believe our partnership approach is a win-win outcome for our investors and Magellan shareholders.”
The investors who participated in the loyalty offer will receive an extra 7.5% units and the investors who took part in the general offer will get an extra 2.5% units.
The high conviction strategy has been a strong performer. The unlisted fund has returned 15.7% per year since inception in July 2013. Some of its holdings include Alibaba, Alphabet, Microsoft, Facebook and Visa.
I didn’t participate in the offer, but I imagine it will continue to perform well for a long time to come by investing in the best businesses in the world.
But there are plenty of good growth shares on the ASX, like the ones revealed for free in the report below.
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