Investor Education

What is a listed investment trust?

What is a Listed Investment Trust?

A listed investment trust or LIT, is a closed-ended, managed fund whose units trade on a stock exchange, such as the ASX, just like an ordinary listed security.

A Listed Investment Trust has an investment team and a portfolio manager who actively selects the underlying stocks or shares that go into the LIT. They undertake deep research into those stocks to determine their position in the portfolio and take into account things like the state of the economy and other factors that could impact the overall performance of the LIT.

Similar to a company listed on the ASX, a Listed Investment Trust has a fixed number of securities on issue at any one time. This makes it a ‘closed ended’ fund and, unlike an open-ended fund, cannot continuously issue new units or redeem existing units. A Listed Investment Trust can only issue new units through a placement, rights issue, dividend reinvestment plan, unit purchase plan or through a takeover of another trust using its own units.

Being a closed ended fund, a Listed Investment Trust can trade at a premium or discount to its Net Asset Value. With the aim of preventing the trading price from falling materially below the LIT’s net asset value per unit, Magellan has put in place several structural processes:

The first is transparency around value: The net asset value of the Listed Investment Trust is disclosed on the ASX and the Magellan website and is updated every 15 seconds using the intraday indicative Net Asset Value or iNAV. The next is scale: Magellan created a Listed Investment Trust of scale, which aims to provide an orderly market of buyers and sellers. And finally, there is a standing buyback programme that has been put in place to allow the Listed Investment Trust to buy back its own units if the ASX share price trades at a meaningful discount to the Net Asset Value per unit.

Magellan has one Listed Investment Trust, the Magellan Global Trust (MGG), which gives investors access to a portfolio of actively managed global stocks with active currency hedging and target cash distribution of 4% pa paid semi-annually. Magellan provides investors with monthly fund fact sheets and discloses the full portfolio on a quarterly basis. There is no paperwork – all that is needed is online share trading account or an account with a stockbroker.

To understand how a Listed Investment Trust works, it’s important to understand some terminology that is used in reference to listed products. Please click on our other videos to learn more.

Important Information: Units in the fund(s) referred to herein are issued by Magellan Asset Management Limited ABN 31 120 593 946, AFS Licence No. 304 301 (‘Magellan’). This material is issued by Magellan and has been prepared for general information purposes only and must not be construed as investment advice or as an investment recommendation. This material does not take into account your investment objectives, financial situation or particular needs. This material does not constitute an offer or inducement to engage in an investment activity nor does it form part of any offer documentation, offer or invitation to purchase, sell or subscribe for interests in any type of investment product or service. You should read and consider any relevant offer documentation applicable to any investment product or service and consider obtaining professional investment advice tailored to your specific circumstances before making any investment decision. A copy of the relevant PDS relating to a Magellan financial product or service may be obtained by calling +61 2 9235 4888 or by visiting

Past performance is not necessarily indicative of future results and no person guarantees the future performance of any fund, the amount or timing of any return from it, that asset allocations will be met, that it will be able to implement its investment strategy or that its investment objectives will be achieved. Statements contained in this material that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of Magellan. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. This material may contain ‘forward-looking statements’. Actual events or results or the actual performance of a Magellan financial product or service may differ materially from those reflected or contemplated in such forward-looking statements. This material may include data, research and other information from third party sources. Magellan makes no guarantee that such information is accurate, complete or timely and does not provide any warranties regarding results obtained from its use. No representation or warranty is made with respect to the accuracy or completeness of any of the information contained in this material. Magellan will not be responsible or liable for any losses arising from your use or reliance upon any part of the information contained in this material.

Further information regarding any benchmark referred to herein can be found at Any trademarks, logos, and service marks contained herein may be the registered and unregistered trademarks of their respective owners. This material and the information contained within it may not be reproduced, or disclosed, in whole or in part, without the prior written consent of Magellan.

How to invest

  • Magellan offers two market-leading strategies, global equities and global listed infrastructure. Find out how easy it is to invest in the world’s best companies, as chosen by Magellan’s experts.

  • Global equity products

    You buy from the world’s best companies, so why not invest in them? Magellan offers a range of highly-rated global equity funds, containing some the world’s best companies that we believe are positioned to benefit from long-term investment tailwinds.

    Find out why investing in a diversified global fund makes sense.

    Invest in global equities
  • Global listed Infrastructure products

    Infrastructure: Supporting you every minute of every day. Our range of top-rated global listed infrastructure funds are positioned to generate inflation-protected, stable yet solid returns.

    Discover why including listed infrastructure in a diversified portfolio can enhance returns and reduce portfolio risk.

    Invest in global infrastructure