PIMCO scraps LIT plans
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.
AUTHOR
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