Which funds could gain from the Iress/OneVue acquisition?
There are five funds which could be set to benefit from the acquisition of OneVue by Iress this week after the financial technology firm announced a capital raising and a scheme of arrangement to acquire OneVue.
Iress chief executive, Andrew Walsh, said the proceeds of the capital raising would be used to partially fund the OneVue acquisition as well as strengthen the balance sheet.
According to FE Analytics, there were five funds in the Australian Core Strategies (ACS) universe which hold a stake in Iress in their top 10 largest holdings, all of which invested in small-cap equities.
These were Celeste Australian Small Companies, CFS Colonial First State Wholesale Australian Small Companies, CFS FirstChoice Wholesale Australian Small Companies, Hyperion Small Growth Companies and Zurich Investments Small Companies.
The largest stake was held by Hyperion Small Growth Companies, which had 5.65% allocated to the technology firm. Weightings to Iress in the other four funds ranged from 2.3% to 4.15%.
Hyperion was the only one of the funds to have reported positive performance since the start of the year, having returned 4% to 29 May, compared to losses of 9% by the small-cap sector over the same period.
There were no funds in the ACS universe which held OneVue Holdings in their top 10.
Performance of five funds since the start of 2020 to 29 May 2020
Both Iress and OneVue had reported negative performance in their share prices over one year and since the start of the year but, of the pair, OneVue fared worst.
Since the start of the year to 29 May, Iress lost 11% while OneVue lost 35.1% while over 12 months, Iress had lost 15.8% and OneVue lost 49.4%.
Share price performance of Iress and OneVue over one year to 29 May 2020
AUTHOR
Laura Dew
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