More investor access to 452 Capital

By Craig Phillips

ColonialFirst State’s exclusive retail relationship with Peter Morgan’s 452 Capital may be reduced by the latter’s decision to launch its own listed investment company (LIC) — Century Australia Investments — into the market.

The offering, which will look to raise up to $250 million and adds to the swarm of managers introducing LICs over the past 18 months, will give retail investors access to the popular manager beyond its relationship with Colonial.

Back in November, this association was also somewhat undermined following a move byChallenger Financial Servicesto allocate 25 per cent of funds flowing into its Boutique Australian Share Fund to 452 Capital, providing investors with indirect access to the boutique manager.

452 says a prospectus for Century Australia Investment’s initial public offering is expected to be lodged with theAustralian Securities and Investments Commission(ASIC) over the next few weeks and will look to issue an initial 250 million ordinary shares with an issue price of $1.

The group kicked off in mid-2002 after being launched by Morgan, the high-flying formerPerpetual Trusteeshead of equities, and former Goldman Sachs senior staffer Warwick Negus.

The fund announced a 21.7 per cent net return for the Colonial First State (CFS) Wholesale 452 Australian Share Fund in its first year of operation — 9.1 per cent above its benchmark — and last month was given a ‘AAA’ rating by international rating and investment data groupStandard & Poor’s(S&P).