by David Chaplin
According to the trust deed lodged with the Companies Office, the new Brook fund will “invest on a long-term basis primarily in listed Australasian mid and small capitalisation securities”.
Brook has set the benchmark for its new fund at 5% above the official cash rate for each year to March 31.
While the fund has targeted Australasian shares its trust deed allows for up to 100% to be invested in any “offshore” securities as well as permitting up to 20% to be shorted at any one time.
“Only liquid securities will be eligible for shorting,” the Brook trust deed says, with that defined as any security “having a market capitalisation in excess of $200 million and a minium free float of $50 million”.
Paul Glass, Brook director, said the new fund would be available to retail investors via platforms and joins its three other products in that market.
Glass said Brook had traditionally been a pure wholesale manager but in the last 18 months it has increasingly sought a retail presence.
“Over time we have evolved into the retail market but we’re keen to operate through financial planners and platforms and not direct to ‘mums and dads’,” he said.
Glass said the new tax rules which favour managed funds and increased demand from retail investors had encouraged Brook to seek further retail investors.
As well as the new Mid Cap fund Brook also offers: an infrastructure fund; the Alpha absolute return fund; and, the Tasman Australasian shares fund.
Glass said Brook has also recently changed the benchmark for the retail Tasman fund from the NZX50 to an equal mix of the NZX50 and the ASX200 indices.
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