Melbourne: new route to Asia?
Olympus Funds Management has launched an offer to invest in a new international fund combined with a stake in the Melbourne-based boutique fund manager.
The offer is for nine shares in the Asia Diversified Fund and one share in Olympus. Both operations will trade separately on listing, which is expected to be December 11.
Olympus managing director John Pereira said the offer allows investors the opportunity to invest in Asia through an ASX-listed company.
“To successfully invest in Asia you need feet on the ground combined with absolute return strategies for high growth markets,” he said.
Olympus has screened more than 1,000 Asian absolute return managers during the past year and, after meeting 50 and conducting due diligence on 25, the Australian manager has chosen 17 to invest into.
Pereira said the fund would invest in a minimum of 15 managers, with a maximum investment of 15 per cent.
The regional split will be 44 per cent of the fund in China, 33 per cent in India and 23 per cent in other Asian countries excluding Japan.
Olympus hopes to raise between $45 and $90 million for the new fund, and a leverage facility is available from Macquarie using a one-to-one basis for the amount of capital contributed.
The management fee for the new Asian fund will be 1.25 per cent paid monthly, and there is a performance fee of 20 per cent for returns above 10 per cent of the benchmark.
This will be the second fund launched by the boutique fund manager. Earlier this year, the manager launched an ASX-listed India fund that invests in equities listed on the Bombay and national stock exchanges.
The new fund and fund manager share offer closes on November 30.
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