PIMCO scraps LIT plans

4 April 2022
| By Laura Dew |
image
image
expand image

PIMCO has scrapped plans to launch a listed investment trust in Australia, just two weeks after announcing its plans.

The US firm announced it would be launching a Global Income Opportunities listed investment trust (LIT) in mid-March and was seeking to raise $500 million when it opened on 29 March.

However, it had since announced on 1 April that it would not be listing because of “insufficient demand” due to residual investor concerns about the historical secondary market trading performance of segments of the LIT sector in the local market.

Rob Mead, head of PIMCO Australia and co-head of Asia-Pacific portfolio management, said: “In the current market environment, the level of demand did not give us confidence that the product would trade strongly in the secondary market. We therefore decided it would be in the best interests of investors not to proceed with the listing”.

The firm said it would consider the vehicle in an unlisted structure instead as this idea had seen more interest.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago