Media Release: Regal launches diversified alternatives LIT, raising up to $500M

Sydney, AUSTRALIA – 29 April 2019: One of Australia’s Leading alternatives investment managers, Regal Funds Management Pty Ltd (“Regal”) today officially launched the initial public offer (“IPO”) for its new listed investment trust, Regal Investment Fund (ASX: RF1) (the “Fund”). The Fund seeks to raise a maximum of $500 million.

The Fund aims to provide investors with attractive risk adjusted absolute returns over a period of more than 5 years, with limited correlation to the equity markets. The Fund structure will provide investors with exposure to a blend of Regal investment strategies, anchored by the award-winning Market Neutral Strategy.

Alternative investments are assets that do not fall within traditional asset classes, and typically have low correlation with equities, fixed income and cash. This can make them useful for portfolio diversification.

Regal’s Chief Investment Officer, Phil King, stated that, “a lot of Australians are overexposed to property and equities, and they need diversification in their portfolio.  Regal wants to provide the leading alternatives vehicle on the ASX”.

Brendan O’Connor, Chief Executive Officer of Regal, said that, “Regal has a 15-year track record of managing a range of diversifying alternative investment strategies.  Regal believes in maximising the available opportunities to profit from market inefficiencies, to take advantage of both rising and falling investment prices. We are excited that we now have the team and resources in place to deliver what I believe will be the market leading alternatives vehicle”.

Regal has one of the largest investment teams in the alternatives space with 24 investment staff, complemented by 19 support staff.

Brendan O’Connor stated, “Regal has invested heavily in the business, and we have carefully built a high calibre and experienced team which gives me great confidence in the future. Our investment team has an average of over 10 years in the financial markets and extensive experience of investing through multiple market cycles”.

Regal believes that the key to achieving superior risk adjusted returns over the long term is through a diversified pool of assets, using a range of investment strategies and backed by long term capital.  The primary exposure will be to the market neutral strategy, however Regal may adjust the investment strategy allocations from time to time depending on prevailing market conditions and in accordance with the investment guidelines.

Regal has achieved industry recognition for its skills as a hedge fund manager on many occasions over the past 15 years. Specifically, winning “Australian Hedge Fund of the Year” in 2011, 2014 and 2016 at the Australian hedge fund awards and “Management Firm of the Year” in 2018 at the AsiaHedge Awards in Hong Kong.

Mr King stated that Regal Staff and the Regal associated entities would be investing over $20m into the Fund.

The Fund has received a Recommended rating from Zenith Investment Partners and a Recommended Plus rating from Independent Investment Research.  Please refer to the Regal website for additional information. 

 

Details of the IPO

Equity Trustees Limited as responsible entity of the Fund is offering up to 200 million new units at $2.50 per unit to raise up to $500 million.  

This is a hard limit. The minimum subscription is $100 million.

 

To participate in the IPO

The Offer is being made under a product disclosure statement issued by Equity Trustees Limited as responsible entity of the Fund dated 8 April 2019 (PDS).  The PDS is available on https://www.regalfm.com/site/regal-investment-fund. Investors should consider the PDS in its entirety, including the terms of the Offer and risk factors involved in investing in Fund before applying to participate in the Offer.

Applications under the Offer can be made by completing the application form attached to the PDS or online through the application form accompanying the PDS. Applicants under the broker firm Offer should contact their broker for application details.

The Lead Arranger to the offer is National Australia Bank Limited. The Joint Lead Managers are Bell Potter Limited, Evans Dixon Limited, Morgans Financial Limited, Morgan Stanley Australia Limited, National Australia Bank Limited, Ord Minnett Limited, Shaw and Partners Limited, Taylor Collison Limited and Wilsons Corporate Finance Limited. Seed Partnerships is the Corporate Advisor to Regal Funds Management, Kardos Scanlan Lawyers are the Australian Legal Advisers to the offer, and Ernst & Young are the Investigating Accountant and Tax Adviser. Equity Trustees Limited is the Responsible Entity.

For further information visit: www.regalfm.com/site/regal-investment-fund

 

Proposed Key Dates

Offer Open

29 April 2019

Broker firm Offer close

24 May 2019

General offer close

29 May 2019

Expected ASX listing

17 June 2019

 

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The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned 26 April 2019) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners. com.au/RegulatoryGuidelines