Hunter Hall launches global LIC
By Ben Abbott
HunterHall Internationalhas joined the long list of companies to establish a listed investment company (LIC) with the launch last week of its previously flagged $200 million Hunter Hall Global Value offering.
The new global product will focus on actively hedged, international equities with a 70-80 per cent portfolio weighting and a focus on absolute returns and the preservation of capital.
Hunter Hall Investment Management executive chairman Peter Hall says now is a particularly good time to establish an internationally focused LIC due to a booming global economy.
“Our objective over the next decade is to build Global Value into an international LIC to rivalPlatinum Capitaland become one of the overall market leaders in this sector, along with AFIC and Argo Investments,” Hall says.
Global Value will be issuing up to 200 million ordinary shares at $1 each, as well as a listed option, which the group values at between 11 cents and 21 cents, exercisable at $1 by April 2007.
“We have carefully structured the offer with a long dated option and a buy back at a 10 per cent discount to net asset value to ensure that shareholders will do well from day one,” Hall says.
The offer opened on February 9 and is expected to close on March 5, with a minimum subscription of $50 million. The lead manager of the issue is Ord Minnett.
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