MGF Share buybacks

MGF is still doing a share buyback with 125 million left in the buyback after what I still think is a botched restructure with MGG.

With 1.6 billion shares on issue, this is just a drop in the ocean and may not have much upside on the price. My belief is that the downtrend will continue unless Magellan scales up the buybacks to maybe another 400 million which isn't likely.

Also seems I still received the MGFO Options even though I didn't take up the extra offer to buy more shares. So lucky I didn't buy any more!

As a comparison, seems that ETFs IVV and ETHI have managed to outperform MGF.

Magellan Global Fund Partnership Offer and Partnership Benefits

I'm not really up to speed with this offer but appears this is an offer to get more closed class units with an option attached  (excise price at 7.5% of the price of the unit)

The Offer Price of Closed Class Units issued under the Partnership Offer will be the NAV per Closed Class Unit on the business day immediately prior to their allotment. The Partnership Offer is expected to close on 23 February 2021. The Offer Price is expected to be the NAV per Closed Class Unit on 26 February 2021. New Closed Class Units and MGF Options issued under the Partnership Offer are expected to be allotted on 1 March 2021 and holding statements are expected to be despatched by 5 March 2021

As an eligible investor in the Magellan Global Fund you have the opportunity to subscribe for up to $1 of Closed Class Units in the Magellan Global Fund for every $4 of units held.

• additional Closed Class Units worth 7.5% of your subscription, funded by Magellan Group; and

• one MGF Option for each Closed Class Unit allotted to you under the Partnership Offer. Each MGF Option will be exercisable into one Closed Class Unit with the exercise price set at a 7.5% discount to the prevailing net asset value per Closed Class Unit at the time of exercise. This discount will be funded by Magellan Group in order to minimise dilution. The MGF Options are intended to be quoted on ASX and will have a three year term.

The Partnership Offer openson 18 January 2021 and is expected to close on 23 February 2021.Closed Class Units and MGF Options issued under the Partnership Offer are expected to be allotted on 1 March 2021.

Although it seems good value (assuming they keep the 4% yield), I'm not sure if I should throw more money at this. I was in MGG before this got merged into MGF and the price action has been a bit disappointing. And now that I bought ETHI to hop on the ESG train, I'm actually debating whether to keep MGG or IVV as keeping both is a bit of a headache. Even though MGG is an LIC I still got a letter where I had to fill in additional boxes on my tax return for the dividend. Also currently IVV is outperforming MGG.

On the plus side, there is a buyback going on within MGF.