Boutique small-cap manager Pie Funds has soft-closed its latest offering less than two months since launching.
The Pie Growth UK & Europe Fund shut to new investors last week after raising $50 million in short order following the November 1 release last year.
With the latest capital-raising Pie now manages just under $500 million across its suite of seven products, four of which are now closed to new investment. Pie also offers the ‘Chairman’s Fund’ – run by company founder, Mike Taylor – that invests into the firm’s other underlying products for invite-only members (with 67 taking up the invitation so far).
“If you missed this opportunity, we still have capacity in our open funds,” Taylor says in a note to clients. “Alternatively, the Growth UK & Europe Fund may be re-opened for a limited capacity offering from time-to-time.”
The blurb for the Growth UK & Europe Fund says the portfolio would “typically have 15 of our best ideas” invested at any one time.
“We intend to invest mostly in listed UK and European Smaller Companies, whose potential we do not consider to be fully realised by the market,” the Pie synopsis says. “The Growth UK & Europe Fund may also invest in other types of financial products such as cash and unlisted equities.”
Pie actively manages forex exposure but does not aim to fully “hedge the currency at all times”, the manager says, “however, this decision is ultimately at our discretion”.
According to the latest information sheet, the new fund, which has returned 3.3 per cent since inception versus the benchmark 5.3 per cent, holds about 62 per cent in cash.
The fund can move to up to 100 per cent in cash during “periods of uncertainty”, the Pie information sheet says.
All Pie products currently hold a reasonably high weighting of cash, ranging from 30 per cent for the Global fund to almost 80 per cent in the Cash Plus vehicle.
To date, Pie has raised money directly only in the NZ market but “may in the future”, according to scheme documents, “offer units in the Funds in Australia to persons who are professional investors or otherwise [legally defined] wholesale clients”.
“We may in the future, at our sole discretion, offer units in the Funds in Australia in accordance with the requirements for Australian offerings under the Trans-Tasman Mutual Recognition Scheme,” the Pie document says.