Liontamer has made its name in the market as a capital protected investment specialist and has also been a regular offerer of new funds.
Since the credit crisis, and a change ownership the firm has been quiet on the offer front. One of the problems has been the volatility in credit markets which has made it difficult to price up new funds.
It is looking to roll out a fund in June which is based on the Australian sharemarket. It hasn’t done a fund on this market previously, but believes this will be attractive to New Zealand investors.
The other big change is that the fund will offer what it calls, “fully unprotected” units as well as ones which have capital protection.
Liontamer investment director of Janine Starks says it is looking at this as an option, but makes it clear there is no offer in the market at the moment, no prospectus has been prepared and it is not seeking funds at present.
She says the firm is looking at having fully unprotected notes which will also be liquid. The firm’s previous funds have liquidity where units can be sold quarterly and are subject to some rules around valuation.
Starks says Australia is attractive as it prices up better for a capital protected fund than other markets at the moment and that New Zealander have significant investments in that market.
The proposed fund is likely to appeal to investors who want to stay in the Australian market and have some protection, but it also is attractive to investors who believe the Australian market will stage a good recovery.
Starks says the unprotected units are likely to have a booster element which gives investors 150% of the upside in the market.
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