OM-IP funds reach significant milestone

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One of the fund managers which has arguably been amongst the most successful at raising money in New Zealand has reached a significant crossroad.

Tuesday, January 10th 2006, 7:28AM

Man Investments, which promotes the OM-IP range of capital protected funds has reached the point where the first of its closed end fund has matured, plus it acknowledges that it is getting harder to raise money in New Zealand because so much of its product has been sold.

Essentially advisers have used a lot of the OM-IP funds and they don’t have much appetite for more of significantly more.

Man has never disclosed how much money it has raised in New Zealand, however it has said that it has been well-received in the market.

Its first fund OM-IP 220, which was launched in August 1997, matured last year and the company extended the fund until 2015.

OM-IP marketing representative Sam Yates said, in response to a question at the SIFA conference last year, that the company will extend all the funds when they reach their original maturity date.

The clear benefit of doing this is that Man will continue to retain funds under management.

However, such a move will probably make it harder to sell new funds into the market.

OM-IP 220 has a capital guarantee provided by Westpac. This guarantee will be continued in the extended fund. Man says that the fund has “provided investors with a total return of 242%” over its term.

It says that Australian property has delieved 161% over the same period and Australian stocks 108%.

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