Merrill Lynch is to launch a closed ended investment company, which will track Japan's Topix index a...
Merrill Lynch is to launch a closed ended investment company, which will track Japan's Topix index and be hedged in sterling.
The sterling-denominated and London Stock Exchange-listed closed-end investment company will offer two classes of shares, each incorporating an outperformance feature.
The accelerated growth share class will offer 160% of the upside in the Topix index, or 100% of any downside in the index.
The reduced risk share class will provide 100% growth in the Topix index, but capital is protected so if the index falls there is no downside for the investor.
The offer period for the fund was scheduled to begin 10 July, subject to regulatory approvals. Shares of the company are expected to be listed on the London Stock Exchange on 14 August.
Shares will be made available to institutional investors in a placing, and to the public via an offer for subscription.
Andrew Clavell, a director of equity markets at Merrill Lynch, said: "This fund is likely to appeal to people who want to invest in Japan through the option of the Japan Topix Index. It will suit those who want the market risk, but not the currency risk."
Merrill Lynch expects to raise around £100m. There is a front end charge of 5% for non-institutional investors and IFAs are offered 3% commission.
The minimum level of investment is expected to be £3,000. The life of the investment company is expected to be six years, at which point it is likely to be wound up.
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