Portfolio Partners closes small-cap door
PortfolioPartnersis set to close its small-cap Emerging Shares Trust to institutional investors and use its remaining capacity for retail inflows sourced through master trusts. This comes after a bumper July that saw the fund return 10 per cent and drive assets up to $480 million — just short of an intended $500 million cut-off for the fund.
“We’re getting there [to $500 million] as we’ve just had a cracker of a month which returned 10 per cent — about 300 per cent above the market. So we’re going to close the fund to new institutional clients and leave it open with the residual to come from the master trusts,” Portfolio Partners managing director Craig Bingham says.
Two-thirds of the assets in the trust are sourced from institutional investors with the remainder attributable to retail investors through master trusts, Bingham says.
Late last year,Investors Mutualclosed its Australian Smaller Companies Fund at $300 million.Perpetual Investmentsdid the same when it closed its Wholesale Small Companies Fund earlier in the same year at $500 million, as didINGwhen it quietly shut its Emerging Companies Fund to new investors as of July 1, 2002.
The Portfolio Partners Emerging Shares Trust is actively managed and predominantly consists of a portfolio of small industrial and resource shares outside the top 100 companies listed on the Australian Stock Exchange.
The small cap trust, which Bingham says is listed on about “half a dozen master trusts”, is benchmarked to theASXSmall Ordinaries Accumulation Index.
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