Alexander McNab

Strong investor interest has seen Blue Sky Alternative Investments Limited raise more than $60 million in an Initial Public Offering (IPO) of its Alternatives Access Fund, exceeding the minimum subscription level of $50 million.

The new Listed Investment Company (LIC), set to debut on the Australian Securities Exchange (ASX: BAF) on Monday 16 June, will be Australia’s only directly managed, alternatives-focused LIC, a unique investment vehicle available on a wide range of platforms[1].

Blue Sky’s investment director Alexander McNab said the listing marked Blue Sky’s most important milestone to date.

“Now Australian investors can directly access the only actively managed diversified alternatives investment vehicle on the ASX.”

According to Rainmaker data from December 2013, alternatives are the fastest growing asset class in Australia, increasing from five percent of all investments in 1997 to more than 13 per cent at the end of 2013. This trend is continuing with almost 20 per cent of all investments forecast to be allocated to alternatives by 2033.

Alexander McNab also thanked the joint lead managers to the offer Ord Minnett Limited and Morgans Corporate Limited, and co-lead manager Shaw Corporate Finance Limited for their role in the capital raising.

Ben Wilson from Ord Minnett Corporate Finance said they had received a lot of interest from financial planning, private wealth, SMSF and retail investors, who had found it hard to access alternatives until now.

“While most Australian LICs invest in listed equities and fixed interest, the Alternatives Access Fund will hold a diversified portfolio of alternative assets managed by Blue Sky across the company’s four divisions of real assets, private equity and venture capital, private real estate and hedge funds,” Ben Wilson said.

Official quotation of the company’s securities is due to occur on Monday 16 June 2014. The company raised $60.39 million under the offer by the issue of 60,391,800 ordinary shares each fully paid at an issue price of $1.00.

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[1] Blue Sky Alternatives Access Fund Limited (ASX:BAF) will be available on the following platforms and MDA providers: MLC Wrap, BT Wrap, Netwealth, Macquarie Wrap, Asgard, HUB24, Mason Stevens and Managed Accounts (IAS).

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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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