Fat Prophets Global Property Fund LIC - IPO Open


Fat Prophets has secured former Goldman Sachs banker Simon Wheatley to run its new REIT focussed LIC which will be the first in Australia to invest in listed real estate, paying a half yearly yield combined with targeting global capital growth opportunities. The Fat Prophets Global Property Fund (the Fund) (ASX: FPP) is seeking to raise a minimum of $27.5 million and up to $165 million, with the ability to accept over-subscriptions of $55 million.

The Fund will invest in a diversified, high conviction portfolio of global real estate exposures managed by Fat Prophets Funds Management Pty Ltd (the Manager). The Fund will invest in 70-90 stocks from the overall 350 stock benchmark universe. The Fund will only invest in equities in developed markets and will not use leverage, shorting or derivatives.

In a letter to investors, Angus Geddes, CEO of Fat Prophets said: "This new Fund provides Australian investors the opportunity to diversify their equity holdings in Real Estate Investments Trusts (REITs) outside of Australia so they can now have an interest in the entities that own, manage and develop some of the most iconic assets around the world."

Key dates
Offer opened: 19 July 2017
Subscriber priority offer closing date: 18 August 2017
Offer expected to close: 1 September 2017

Chief Executive Officer, Angus Geddes, and Chief Investment Officer, Simon Wheatley, introduce Fat Prophets newest Listed Investment opportunity: The Global Property Fund (ASX: FPP).

In Conversation

Fat Prophets Fat Prophets Global Property Fund LIC - IPO Open Launched on 19 July 2017 Designed for wholesale and retail investors. Find out more

Fat Prophets Global Property Fund: Q&A with CIO Simon Wheatley

What makes the Fat Prophets Global Property Fund unique to the market?

This is the first Australian Listed Investment Fund (LIC) with a listed Real Estate Strategy. While there are now close to 100 Listed Investment Companies on the ASX, many of them have replicated strategies but none have a strategy of investing in Real Estate Investment Trusts (REITs). Given the REIT sector accounts for a meaningful 6% of the ASX200 Index, this lack of opportunity in the LIC space is a clear market gap which the new fund will fill.

Why own REITs?

REITs are well known as having a high proportion of their return coming from distribution yield which reflects the rent coming from the assets they own and underpins total return. REITs also have much lower volatility than equities, have their share price supported by tangible assets, and in Australia, REITs have outperformed equities 50% of the time over the last 20 years. This means that from a risk return perspective, REITs have a clear place in a balanced portfolio.

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The Investment Manager can be contacted directly by interested Financial Advisors and Intermediaries for further information at simon.wheatley@fatprophets.com.au