Court rejects bid to wind up Magellan's global fund
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The news: Magellan Financial Group has succeeded in its legal bid to reject a unitholder meeting called by activist shareholder Nick Bolton to ultimately wind up the the group's Global Fund. The Sydney Supreme Court found Bolton's pathway invalid and ineffective.
The numbers: Keybridge Capital's Bolton had the support of roughly 118 unitholders, or about 1% of voting interests in the fund, The Australian reports. Magellan's closed end Global Fund listed class was worth $2.65 billion as at 30 September.
The context: Magellan has been haemorrhaging funds under management in recent years, going from more than $113 billion in 2021 to $35 billion in September, with its flagship Global Equities Fund leading the losses. In a statement, Magellan said it would develop a proposal for unitholders to vote on converting from closed to open class units in a meeting slated for the first half of 2024.
The sources: ASX Announcement, The Australian, FUM Update
