Fund manager PM Capital is hoping to raise $200 million for its second listed investment company in the space of five months, capitalising on what it says is strong local investor demand for international equity exposure.
A retail offering for the PM Capital Asian Opportunities Fund opens today following a broker roadshow that drew 500 financial advisers, raising hopes the fund will draw close to the top of its $50m-$200m offer range.
“The level of interest has been high — whether that turns into subscriptions remains to be seen,’’ said Chris Donohoe, chief executive of PM Capital.
The raising follows $173m drawn to the PM Capital Global Opportunities fund in December, the first listed investment company launched by veteran fund manager Paul Moore’s privately held funds group.
Boosting hopes for the raising, the country’s biggest retail broker — the Commonwealth Bank’s CommSec — has joined the offer as a joint lead manager alongside Taylor Collision and Morgans. Ord Minnett is leading the offer.
Mr Donohoe said the Global and Asian funds had been designed to capitalise on the historically low allocation of Australian retail investors to international asset classes.
“There is a big need for end investors to branch out and invest offshore, rather than just chasing bank shares higher,’’ Mr Donohoe said.
The Asian fund has been modelled on the $10m unlisted Emerging Asia Fund fund managed by Kevin Bertoli for the firm, which has returned 202.3 per cent since inception.
“The message is clear that (investors) cannot continue to buy exposure to Asia just by buying BHP and Rio shares,’’ Mr Donohoe said.
“You need to be on the right side of the four billion consumers in that region.’’
The fund aims to be fully invested in a concentrated portfolio of Asian stocks within six months but retain flexibility to time its buying to maximise returns. The PM Capital Global Opportunities fund is still just one-third invested in debt and equity securities after listing on December and seeing markets move higher.
Shares of the LIC, offered at $1 with a free option to buy another share, traded above the issue price shortly after listing and were half a cent lower yesterday at $1.