PM CAPITAL eyes ASX listing for Global Opportunities Fund

PM CAPITAL will launch a listed investment fund.

PM CAPITAL will launch a listed investment fund.

Sydney-based specialist equity fund manager, PM CAPITAL, yesterday said that following strong demand from investors, it will launch a listed investment fund (LIC); the PM Capital Global Opportunities Fund Limited.

CEO of PM CAPITAL, Chris Donohoe, said access to global shares is limited for investors wanting to access the market via the Australian Stock Exchange (ASX), although demand in the space is on the rise.

“Based on our observations of investment markets, we believe that now is an excellent time to offer this global equity company to investors.”

“Cash and bonds are trading at historically low yields and do not compare to the relative earnings yield of companies.”

“Within equities markets we believe global markets provide a superior risk/reward opportunity. With moderation in China’s demand for commodities, some Australian companies trading at significant premiums to their global peers and with the prospect of a falling Australian dollar, we believe that the outlook for global equity returns in Australian dollar terms is attractive, especially relative to other investment opportunities available to Australian-based investors.”

Mr Donohoe said many investors’ portfolios were underweight global shares, even though they understood the benefits of international equities.

“With only a handful of ASX-listed global equity managers currently available, we believe this well-timed opportunity will appeal to those investors looking to increase their exposure to global equities.”

“Most investors are aware that offshore markets offer a far greater breadth of opportunity that cannot be found in Australia.   However, the familiarity with Australian shares, means investors remain underweight global equities.   Our LIC will give investors access to quality global businesses via an experienced investment team focused on maximising the long term after tax value of investors’ capital.”

“There are only a small number of global LICs in Australia, with the majority of assets trading at a significant premium.  We therefore believe that this IPO will attract good interest.”

PM CAPITAL has appointed Ord Minnett to act as arranger and joint lead manager in a pre-capital raising roadshow. RBS Morgans, Bell Potter and Taylor Collison have been appointed as the other joint lead managers.

As at 30 September 2013, the Fund had achieved a 12 month return after fees of 54.2%; a 20.5% excess return compared to benchmark, the MSCI Global Equity index. The Fund has achieved a 190.7% total return after fees since inception in October 1998 compared to the 29.3% return of the index over the same period.

PM CAPITAL is a Sydney based equity and income fund manager who manages in excess in A$1.5 Billion in funds on behalf of private clients, the clients of financial advisers and institutional investors.

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