Fat Fund to feed hungry investors
By Craig Phillips
STOCK research firm Fat Prophets is aiming to launch a boutique listed investment company (LIC) in a move that will push the group into the realm of buying and selling shares for the first time.
The Fat Fund, as the vehicle will be known, is seeking to raise $40 million and will be a separate entity to the research business.
The stock-tipping firm said Fat Fund’s creation stems from demand from more than 7,000 Fat Prophets’ subscribers, many of whom have their own DIY superannuation funds.
The offer opens for a seven-week period between February 17 and April 8 and involves the issue of 40 million stapled securities at $1 each, representing one share and one option, exercisable at $1 within three years.
The fund, which has a minimum investment of $5,000, will have an independent board of directors, along with an independent risk and investment committee, with the aim of providing a ‘Chinese wall’ safety net to shareholders.
It will be led by chief executive David Shearwood, who is a former senior analyst with both Westpac and Macquarie.
Meanwhile, the LIC’s senior fund manager will be former Advance Asset Management analyst Steve O’Hanna.
“The Fat Fund will be using the Fat Prophets’ report as one source of research for picking high value stocks, as well as a range of other research analytics employed by our independent research team,” chairman Robert Bolton said.
Recommended for you
After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision.
Hot on the heels of its AMP advice acquisition last year, Entireti has acquired licensee solution provider IOOF Alliances from Insignia, enhancing its offering for self-licensed advisers.
Over 600 AFSLs – a third of the total number – are operating with just one adviser, according to Wealth Data, reflecting the rise of self-licensing.
Wealth management firm LGT Crestone has appointed Darragh Kennelly as a senior investment analyst to help the firm scale its alternatives platform.
