Watermark launches market neutral LIC
Watermark Funds Management has launched a global market neutral fund, which aims to deliver positive returns of 10 per cent or more, with no correlation to the share market.
Australian retail investors would now be able to access Watermark Global Leaders Fund Limited, a listed investment portfolio, via the Australian Securities Exchange (ASX), which has used long and short positions.
The fund was made available to the pubic via an initial public offering (IPO), at a share price of $1.10 per share.
The firm was seeking $110 million under the IPO and it had the ability to accept up to $150 million in oversubscriptions.
Watermark founder and chief investment officer, Justin Braitlin, said: "Investment returns in a market neutral fund rely on the skill of the manager, and can deliver positive returns irrespective of the direction of the market. This type of strategy enables investors to profit from the mispricing of securities while limiting their exposures to market risk".
There was a strong case for investing in market neutral strategies, he said, particularly given the current low interest environment, complex global economy and geopolitical environment.
"Furthermore, the Watermark Global Leaders Fund presents the only way investors can access a global market neutral strategy in Australia," Braitling said.
WGF's was open for initial investment until 9 December 2016. ASX trading was expected to commence on 21 December 2016.
Recommended for you
Global asset manager Janus Henderson could be acquired after receiving a non-binding acquisition proposal jointly from a private investment firm and venture capital firm.
Investment manager Salter Brothers has partnered with private equity firm Kilara Capital to launch an Australian sustainable investment platform focusing on decarbonisation.
Fresh off launching three active ETFs to the Australian market, Avantis Investors is already planning to expand its range with two further products next year.
Ausbil is growing its active ETF range with an ESG product in collaboration with sister company Candriam.
