LITs grow in popularity
Equity Trustees, which is the responsible entity (RE) of the NB Global Corporate Income Trust’s A$413 million listed investment trust (LIT), has said that the listing on the Australian Securities Exchange (ASX) of Neuberger Berman’s NB Global Corporate Income Trust is another sign of the growing popularity of listed investment trust (LIT) structures.
Investors might be particularly attracted to this LIT structure as it aimed to provide a regular income stream and maintain a strong emphasis on capital preservation.
The firms said that these structures would be additionally growing in popularity due to an ageing popularity which would be moving into retirement phase.
Equity Trustees’ executive general manager, corporate trustee services, Harvey Kalman, stressed that distributions, paid in monthly instalments, was one of the benefits of this LIT structure.
“The reason we don’t see more of these kind of structures in the market is that they require a big commitment up front by a number of parties to establish. But given the keen investor and broker interest in this trust and the IPO ... we’re confident there will be more to come,” he said.
“Having established the trust, the task now is to take care of all the operational governance and compliance obligations while the investment manager, Neuberger Berman, focus on the investment strategy.”
Neuberger Berman is a private, independent, employee-owned asset management group which manages more than US$300 billion in client assets (as at 30 June 2018) across a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity and hedge funds—on behalf of institutions, advisers and individual investors globally.
It has been in Australia since 2007 and has 20 offices globally.
Recommended for you
Perpetual has seen AUM rise 6 per cent in the last quarter but the departure of a longstanding JOHCM fund manager led to outflows of $2.2 billion from his strategy.
In the latest Meet the Manager profile, Money Management speaks with Michael Skinner, founder and managing director at Blackwattle Investment Partners.
Global fixed income fund Bentham Global Opportunities has been added to several major platforms, enabling it to be accessed more easily by financial advisers.
Following yesterday’s news about First Sentier Investors closing four investment teams, a second global asset manager has announced it is closing its only dedicated Australian fund.