Magellan closes FuturePay strategy
Magellan has terminated its retirement income-focused FuturePay strategy, effective from 20 July, just over a year after launching it.
FuturePay was a listed, actively-managed fund launched in June 2021 with an expected annual yield of 4.2%, it aimed to delivered a predictable monthly income with a focus on downside protection.
In a note to investors, seen by Money Management, the firm said it would return investors their capital in the fund and make an additional payment to those investors who would otherwise have received less than their original investment at the closure date.
Assets under management in the strategy were $18.7 million, as of 31 May, 2022.
The closure would take effect from Wednesday 20 July, 2022 and the firm said it was consistent with its strategy to simplify its business and concentrate on its core investment capabilities. This also included the sale of its stake in fast food chain Guzman y Gomez earlier this year.
The firm said: “FuturePay was developed to meet the needs of many investors for retirement income and its unique structure achieved this objective. However, given the current size and modest anticipated demand for FuturePay, the board of Magellan, having considered the alternatives, has determined that it is in the best interests of investors to return their capital and terminate FuturePay”.
Investors entitled to the June 2022 distribution would be paid on 15 July, 2022 and it was anticipated they would receive the final distribution in respect of units held on or about 27 July, 2022.
AUTHOR
Laura Dew
Recommended for you
The $673 billion global investment manager has appointed a former Zenith sales head as it seeks to expand its reach in the Australian wealth management market.
Fund managers may be operating in a squeezed environment, but a salary guide shows they are willing to pay up for specialist talent to diversify their fund range.
Reach Alternative Investments has entered into a strategic partnership with Russell Investments to bolster its wholesale private markets offering for financial advisers and investors.
Boutique investment consulting and research house Genium Investment Partners has announced a senior appointment to drive further growth in its research ratings business.
