Overview

Overview

On 1 July 2021, Magellan Asset management Limited (“Magellan”) announced its intention to transition the Magellan High Conviction Trust (“Trust”) from a closed-ended listed investment trust on the Official List of the ASX to an open-ended Active ETF quoted on the ASX under the AQUA Rules (the “Transition”).

Prior to Magellan announcing its intention to pursue the Transition, the Trust had been trading at a material and persistent discount to its net asset value per unit.

As an open-ended Active ETF, unitholders will be able to apply for and redeem units in the Trust directly from Magellan at close to the net asset value per unit. They will also have the ability to buy and sell units on the ASX at what is generally expected to be a tight spread to net asset value.

The Directors consider that the benefits for unitholders of reducing the trading discount and providing more flexibility in how unitholders can enter and exit the Trust by transitioning it to an open-ended Active ETF, outweigh the benefits of the Trust remaining as a closed-ended fund.      

If the Transition is implemented, each unitholder's holding in the Trust will not change, however the Trust’s units will trade under the ASX ticker “MHHT” instead of “MHH”.

Unitholder approvals are required in order to effect the Transition. Unitholders are being asked to vote at a meeting to be held at 9:00am (Sydney time) on 25 August 2021.

Documents

Important Documents

The PDS will not constitute an offer of interests in the Trust unless and until the implementation of the Transition has been completed.

Key Dates

Key Dates

Unitholder Meeting to approve the Transition Wed, 25 Aug 2021
Suspension of Units from trading on the Official List of ASX Close of business Thu, 26 Aug 2021
Removal of the Trust from the Official List of ASX Mon, 30 Aug 2021
Trust expected to commence trading on ASX under AQUA rules under the ticker “MHHT” Tues, 31 Aug 2021
The above timetable is indicative only.  Magellan reserves the right to vary the dates and times set out above subject to the Corporations Act and other applicable law.
How to vote

How to vote and participate in the Unitholder meeting

The unitholder meeting to approve the Transition will be held at 9:00am (Sydney time) on Wednesday 25 August 2021. Registered holders of Units in the Trust as at 23 August 2021 are eligible to vote at the meeting.

To vote online prior to the meeting, visit https://www.votingonline.com.au/mhh2021 and follow the prompts and instructions. You will need your Voting Access Code. Votes are due by 9:00am (Sydney time) on Monday 23 August 2021.

Magellan had previously flagged that it would be closely monitoring the situation regarding COVID-19 and that it would notify unitholders of any changes to the way in which the Meeting is to be held.

In light of the current COVID-19 governmental public health orders, and in the interests of the health and safety of unitholders and the broader community, the meeting will conducted as a virtual meeting only.

To participate and vote during the meeting, visit: https://web.lumiagm.com/364040652. Please ensure you have your Voting Access Code as this is the username that you will need to login. Your password is your postcode registered on your holding if you are an Australian unitholder or your country of residence if you are an overseas investor. Click here to download a Virtual Meeting User Guide.

 

 

Unit Registry Change

Unit Registry Change

Automic Pty Ltd (Automic Group) will become the unit registry provider for the Trust (in place of Boardroom Pty Limited) with effect from 30 August 2021.

The role of the unit registry is to keep a record of Unitholders in the Trust. This includes information such as the quantity of units held, TFNs (if provided), bank account details and details of DRP participation.

No action is required from Unitholders in relation to the change of unit registry provider. Unitholder details (including TFN, bank account, and DRP election) will be transferred to Automic Group. From 30 August 2021, Unitholders will be able to access and update their details via the Automic Group investor portal at https:\\investor.automic.com.au.

The change of unit registry provider is not subject to approval of the Transition by unitholders.

Further Information

Further Information

If you have any questions please contact either a member of Magellan’s Distribution team on 1800 MAGELLAN (1800 6243 55), the Unit Registry or your financial adviser or broker.