Niche Australian small-cap manager, TBF Investment Management, could appeal to New Zealand advisers willing “to go ‘off the beaten track’”, according to Thom Bentley, head of Remarkable Capital.
Bentley, who represents TBF in NZ, said the group’s Small Cap Value Growth Fund would suit advisers “who are looking for exposure to Australian small caps which they can’t obtain through retail brokers”.
TBF is seeking just over $100 million from investors and advisers on both sides of the Tasman for its fund, which currently has about $40 million under management after launching in Australia in 2013.
The fund will ‘soft close’ when it hits $150 million, Bentley said.
He said while the fund is less than two year’s old it would probably meet its quota before the standard three-year performance record required by research houses.
“There will be a number of advisers who won’t or can’t consider the fund until it has a three year track record, but it is likely the fund will be closed to new investment before it reaches the three-year mark,” Bentley said.
TBF, shorthand for The Boat Fund, was founded by entrepreneur, Ron Shamgar, corporate lawyer, Sam Orr and former Morgans Financial (previously known as ABN Amro Morgans), Peter Durbin.
“In addition, the Investment Committee compromises Ron, Sam and Peter plus three further independent investment professionals, all of whom have significant small cap experience,” Bentley said.
He said fund originated from a Facebook page where Shamgar and Orr discussed personal investment ideas.
“Over time generated some 6,000 followers, and this led to significant demand for Ron and Sam to launch a fund,” Bentley said. “The idea behind the name is simply that the fund was set up to generate wealth for investors, many of whom dream of owning a boat or a yacht.”
He said as the fund is an Australian unit trust NZ investors have to be aware that any movement in the NZD/AUD cross rate will impact returns.
“And any tax implications need to be discussed with clients prior to investing,” Bentley said.
As at publication time, TBF documents were yet to be posted on the new Ministry of Business, Innovation and Employment website, Disclose. To date, 14 products have been listed on the Disclose site, most of which are Australian-domiciled.
Last week the Financial Markets Authority (FMA) said the first New Zealand financial products, which must follow new Product Disclosure Statement (PDS) rules, began to appear on Disclose.
Simone Robbers, FMA director for primary markets, said the new PDS standards and the Disclose website have significantly improved the level of financial information available to New Zealand investors.
“It’s now easier for investors to access and read the information they need before investing,” Robbers said. “We expect to see many more product offers appearing on ‘Disclose’ and using the benefits of the new regulations.”