Overview
On 20 May 2024, Magellan Asset Management Limited (“Magellan”) as responsible entity of the Magellan Global Fund (“Fund”) sent a Unitholder Booklet to the Fund’s Unitholders in relation to the proposed conversion of the Closed Class Units in the Fund to Open Class Units in the Fund (“Conversion Proposal”).
Magellan is pleased to advise the Conversion Proposal was implemented on 22nd July 2024.
The Conversion Ratio was 0.73604246 and eligible Closed Class Unitholders who were registered as holders of a Closed Class Unit at 7.00pm (AEST) on 15 July 2024 received 0.73604246 Open Class Units for every Closed Class Unit held.
The newly issued Open Class Units can be traded from 23rd July 2024. Magellan Global Fund (Closed Class) (ASX:MGF) has been delisted and removed from the official list of the ASX.
Magellan can confirm the ATO has published the Class Ruling as outlined in Section 6 of the Unitholder Booklet with an effective date of 7th August 2024, accessible here. Accordingly, please refer to the below:
How do I make the Election to apply CGT roll-over relief :
The Closed Class Unitholder must make a choice to apply CGT roll-over relief by the day they lodge an income tax return for the income year in which the Implementation Date, 22nd July 2024, occurred. The choice can be evidenced by excluding the disregarded capital gain or capital loss from assessable income in the Closed Class Unitholder's income tax return and on the Capital Gains Tax Schedule, if applicable. There is no need to lodge a separate notice with the ATO.
Where a Closed Class Unitholder has elected to apply CGT roll-over relief :
- a capital gain or capital loss that the Closed Class Unitholder makes from the redemption of their Closed Class Units under the Conversion should be disregarded and deferred until a subsequent taxable event occurs in respect of the Open Class Units
- the Closed Class Unitholder should be taken to have acquired their replacement Open Class Units on the date they originally acquired (or are taken to have acquired) their redeemed Closed Class Units; and
- the first element of cost of their replacement Open Class Units should be equal to the total cost base of their redeemed Closed Class Units when they were redeemed
Where a Closed Class Unitholder is not eligible for, or does not choose, CGT roll-over relief:
- any capital gain or capital loss made by the Closed Class Unitholder from the redemption of their Closed Class Units will be taken into account in calculating the Closed Class Unitholder's net capital gain for the income year in which the CGT event (i.e. redemption) happened; and
- the Closed Class Unitholder is taken to acquire their replacement Open Class Units with effect from the date of implementation of the Conversion; and
- the first element of cost of their replacement Open Class Units should be equal to the value of those units when they were acquired.
Investors should seek their own independent tax advice in relation to the above information.
The History of the Global Funds
For more information about each investment click on the appropriate link below:
Magellan Global Trust (MGG) Magellan Global Fund Magellan Global Equites Funds (MGE)
If you have any questions regarding your holdings in the Magellan Global Fund, please contact the Fund’s Unit Registry, please contact Apex Group on 1300 127 780 (Australia), 0800 787 621 (New Zealand) ) or +61 2 8259 8566 (International).
If you have any questions regarding the Conversion or would like to speak to a Magellan representative, please call +61 2 9235 4888 or consult your legal, investment or other professional adviser.