INVESCO's decision to launch an Asian closed-end fund and then open end it after a year is primarily...
INVESCO's decision to launch an Asian closed-end fund and then open end it after a year is primarily to ensure a smooth first year and to enable expansion of the vehicle in later years.
INVESCO Asianet was launched last week and is domiciled in Dublin, but will be listed on the London Stock Exchange. The minimum investment is $5,000, or £3,100, and the annual management fee is 1.25%. The offer closes on 10 April and the target fund size is $150m
One of the main reasons that the vehicle will be initially closed ended is to allow the portfolio to be fully invested, according to Graeme Proudfoot, managing director specialist funds division at INVESCO. He added: "We didn't want to have to keep a large cash weighting to service any redemptions which arise in the first year."
After one year the group expects to convert the vehicle into an open ended structure. This should provide investors with two exit options, either by redeeming shares or by trading them in the secondary market as the shares will still be listed.
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