NAOS LAUNCHES NEW LISTED INVESTMENT FUND TO TAKE ADVANTAGE OF OPPORTUNITIES IN UNDERVALUED EMERGING COMPANIES
30th November 2012: NAOS Asset Management (NAOS), one of Australia’s top performing investment firms since 2005, is expanding its investment product offering in the Australian equities market with the launch of the NAOS Emerging Opportunities Company Limited.
The new listed investment company has been established to fill a gap in the listed investment company landscape, by providing investors with high quality, transparent and concentrated exposure to emerging companies that are listed outside the S&P/ASX 100 Accumulation Index.
Sebastian Evans, NAOS Asset Management Fund Manager said: “In Australia, the All Ordinaries Accumulation Index is the key market index used to assemble investment portfolios but is highly weighted toward materials and financial companies (over 60% by market capitalisation). As a result, emerging investment opportunities across a diverse range of industries, such as digital media, pharmaceuticals and telecommunications services are often overlooked.
“The new fund aims to take advantage of the market inefficiencies and provide the investor with a concentrated exposure to emerging companies in high growth industries that are overlooked by the current listed investment company offerings,” said Mr Evans.
NAOS Emerging Opportunities Company Fund key elements:
- Available capacity: The Fund aims to attract up to $50 million under NAOS Asset Management by the 30th of December at an offer price of $1.00 per share.
- Shareholder value: For each share issued, subscribers will receive attaching listed options on a one for one basis at an exercise price of $1.00, exercisable until 1st February 2015. The Fund also aims to provide investors with a dividend yield of 4.00% per annum fully franked (subject to availability of franking credits).
- Risk adjusted investment strategy: The Fund offers access to a long-term investment strategy that focuses on undervalued emerging companies that outperform the S&P/ASX Small Ordinaries Accumulation Index (the Funds’ benchmark Index). The fund will be similar to the unlisted NAOS Emerging Companies Long/Short Equity Fund. The historical performance of that fund is listed below.
- Flexible investment product: The Fund offers a listed product that is simple to understand and transparent for investors. The product will have the ability to hold 100% cash in times of high volatility and few investment opportunities to preserve capital.
Sebastian Evans will serve as Director and principle fund manager. Warwick Evans – a former Managing Director for Macquarie Equities globally and former Chairman of the Stockbrokers Association of Australia – is also a Director. David Rickards, a former Executive Director at Macquarie Group and Head of Research and Strategy at Macquarie Group Globally, will serve as the Independent Chairman.
Together, the investment team boasts a combined 61 years of experience in equity markets and provides investors with a board that would be expected in a company many times the market capitalisation of this offering. All directors will be significant investors in the IPO to further their alignment with shareholders.
The Fund will be managed under the NOAS Asset Management portfolio, which includes the NAOS Emerging Companies Long Short Equity Fund.
Applications for investment subscriptions open on the 29th November 2012 and close on the 28th December 2012.
|Fund feature||NAOS Emerging Opportunities Company Limited|
|Inception date||29th November 2012|
|Investment objective||Australian emerging companies fund that invests in stocks outside the S&P/ASX 100 (long book); All Ords (short book)|
|Performance target||To outperform the Small Ords Accum Index over the medium to longer term|
|Initial Subscriber Shares||$1.00 each|
|Fees||1.25% Management fee (EX-GST and a 15% Performance Fee with the benchmark being the Small Ordinaires Accumulation Index and subject to a Highwater Mark|
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About NAOS Asset Management:
Naos Asset Management is a fully funded, award winning boutique investment firm that specialises in investing in undervalued smaller companies through the Naos Emerging Companies Long/Short Equity Fund. Naos is a privately owned company originally founded in 2005 by three former directors of Southern Cross Equities, who remain as shareholders today along with a number of well-known individuals in the market place. Naos currently has $XXM under management (November 2012).
 Since its inception in 2005, NAOS has been recognised as Australia’s top performing long / short investment firm. The NAOS EMERGING COMPANIES LONG / SHORT EQUITY FUND has been named: Best Performing Hedge Fund in the Asia-Pacific Region by Bloomberg in 2009; Best Performing Hedge Fund in Australia by the Australian Financial Review in 2009 and 2010; and is ranked in the top 5 equity funds throughout Australia by Morning Star Data Research over 3, 5 and 7 year returns (as at the end of September 2012).
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