Magellan's new listed investment trust (LIT) has raised $1.55 billion ahead of listing on the ASX next week - representing one of the largest IPOs for a listed investment vehicle.
The Magellan Global Trust represents the next phase of Magellan's ongoing push towards the retail market, underscored by the group's three-year partnership with Cricket Australia.
Magellan executive chair Brett Cairns said the company is pleased with the significant support Magellan has received from both new and existing investors.
Investors under the priority offer will be issued units tomorrow, while units under the broker firm and general public offer will be allotted the following day.
Magellan chief executive Hamish Douglass, who will personally invest in $20 million worth of units in the LIT, said it is specifically designed with retail investors in mind. It targets a 4% cash distribution yield, holding between 15 to 35 global securities.
"Companies such as Alphabet (the owner of Google), Apple, Microsoft, Nestle, PayPal and Yum! Brands are world leaders in their fields that have no equivalents on the ASX. Australians are familiar with these names because we use their products and services all the time," he said.
Given the fairly high Australian dollar, it makes sense to invest in global equities and Australian investors should have a meaningful portion allocated to this asset class, Douglass added.
Douglass and chief investment officer, Stefan Marcionetti, will co-manage the portfolio.
Magellan Global Trust is expected to trade on October 18 under proposed ticker code is MGG.