Antipodes Partners, the boutique launched by multi-affiliate manager Pinnacle Investments Management in March last year, is joining the listed investment company trend by looking to raise at least $100 million for a global equity LIC.
Pinnacle backed Antipodes, led by Jacob Mitchell, a former deputy CIO at Platinum Asset Management, with about $200 million to manage following its takeover of some international trusts formerly run by Perennial Investment Partners. Pinnacle provides backoffice and marketing services to the firm.
Pinnacle said at the time of Antipodes’ launch that it would look to add some international distribution to its fund-raising. This follows the success of another Australian-based global manager, Magellan, in raising money offshore. Pinnacle had nine business development managers overseeing relationships for $15 billion in assets as of last year.
The prospectus says that the offer, expected to open on August 15, will be for a minimum of 90.9 million shares at $1.10 each, with another 90.9 million options at the same price. It is seeking up to $220 million, with the ability to accept $110 million in oversubscriptions.
The growth in LICs in the past couple of years has created a lot of interest, mainly for the division among investors between supporters and detractors. There are about 80 LICs in the market.
A recent report by brokers Bell Potter detailed the likelihood of an LIC to trade at a discount or premium. It discovered that while most LICs trade at a discount, the larger ones are more likely to trade at a premium. Crucial to the after-trade activity is whether the sponsors are able to support the stock in the market.
Another talking point is the difference between LICs and ETPs, such as actively managed exchange-traded products – a growing sub-set of the ETF market.
The Antipodes Global LIC boasts Chris Cuffe as one of its directors as well as well-known former institutional marketer Lorraine Berends. Chairman is Jonathan Trollip, a professional director who is also chair of two other LICs – Global Value Fund and Future Generation Investment Company.
Trollip says in his letter to investors that the portfolio will be high conviction comprised of both long and short positions. He says that there is a shortage of quality global equity products which are index unaware and focused on capital preservation available to Australian and New Zealand investors.
* Greg Bright is publisher of Investor Strategy News (Australia)