PM Capital Global Opportunities Fund Limited (“PGF”) and its wholly owned subsidiary, PM Capital GO 2025 Limited (“GO 2025”), are together offering investors the opportunity to gain access to PM Capital’s award winning global equities capabilities via the issue of a new type of Listed Investment Company (“LIC”) security.
This new security, known as PTrackERS, has been designed specifically to improve LIC investor outcomes and choices. It represents a significant evolution and innovation for LIC investors.
The Offer of PTrackERS is strictly limited to a maximum of $491,273,967.80, consisting of 350,909,977 securities to be issued at an Issue Price of $1.40 per PTrackERS.
The Offer is comprised of three parts:
- Entitlement offer to PGF shareholders;
- General Public Offer; and
- Broker Firm Offer.
What are PTrackERS?
‘PTrackERS’ stands for ‘Portfolio Tracking Exchangeable Redeemable Securities (Converting Security)’
PTrackERS are the next generation of Listed Investment Company (LIC) securities and have been developed by PM Capital with the objective of improving LIC investor outcomes and choice. On a look-through basis, they represent your investment exposure to an underlying portfolio held by the Company – like a LIC – but with the benefit of allowing you the choice to exit your investment based on NTA as at 30 June 2025.
This innovation is designed with the objective of providing investors the choice to:
- redeem in the future based on NTA;
- convert into fully paid ordinary PGF shares:
- without incurring any dilution to NTA Before Tax plus Franking Credits per PTrackERS; and
- without triggering a CGT event (please obtain your own tax advice. An ATO Product Ruling has been obtained by GO 2025 and PGF); or
- sell at any time on the ASX at prevailing market prices if you choose to.
PM Capital has trademarked the term PTrackERS, given it represents significant evolution and innovation for traditional LIC investors.
Access to award winning and leading investment manager, PM Capital Limited
An Industry Leader
To the end of December last year, global funds and mandates managed by PM Capital held the Number 1 ranking performance in their Morningstar peer group of over 140 peers for 5, 6, 7, 8, and 9 year investment returns.1
PM Capital was recently awarded the prestigious Money Management/ Lonsec 2018 Fund Manager of the Year - (equities long-short category, as well as receiving numerous other awards over past years.
Desirable Long-Term Track record
Double the annual return of the MSCI World Net Total Return Index (AUD) over a history of nearly 20 years after all fees and expenses in its flagship unlisted PM Capital Global Companies Fund***.
Paul Moore uses an investment style emphasising experience, patience and conviction. He has developed this investment philosophy and process for over 30 years.
Access to a ground-breaking advancement in LIC securities
PTrackERS provide: more choice; more equitable outcomes; more alignment and accountability from the investment manager; and more direct and transparent exposure to investment returns.
Investors can: Sell at any time on market; Remain invested by converting into PGF Shares on 30 June 2025; or Redeem on 30 June 2025 based on NTA.
LICs can and do trade on the ASX at discounts to their NTA. PTrackERS offer alternatives to selling at a discount.
For traditional LICs: Entry fees, corporate actions, and LIC discounts make tracking manager returns difficult.
For PTrackERS its easy: Changes in NTA plus dividends equals investment manager performance after LIC operating costs.
Designed to be non-dilutionary to NTA before tax plus franking credits for both PGF and PTrackERS.
PM Capital is paying all Offer costs. On day 1, PTrackERS investable NTA equals Issue Price (this is rare with LICs)
Other LICs lock-up capital. PTrackERS gives investors the choice to redeem or stay.
Makes investment manager truly accountable for investment performance and communication.
The following benefits of a traditional LIC still remain:
PTrackERS can be traded daily on the ASX consistent with shares of LICs;
the Investment Manager can, due to the seven year time frame, genuinely invest for the long term without the distraction of daily capital flows; and
- dividends can be franked where franking credits are available.
GO 2025 has a clear and simple distribution policy:
The Company will target a distribution yield of between 3% and 4% per annum. This is comprised of semi-annual distributions equal to between 1.5% and 2% multiplied by the average of the previous 6 month-end NTA After Tax Liabilities.
This website is issued by PM Capital Limited (ABN 69 083 644 731, AFSL No. 230222). It contains general information only and does not constitute financial product or investment advice, an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities. The website is not intended for any person outside, or non-resident, of Australia or New Zealand, and does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States.
The information herein seeks to provide an insight into how and why we make our investment decisions, and is subject to change without notice. It does not, take into account any investors’ investment objectives, financial situation, tax position or particular investment needs. Investors should seek their own financial advice, and must make their own assessment of the PTrackERS and consider the Prospectus (dated 2 July 2017) prior to making a decision to invest. Past performance is not a reliable indicator of future performance and no guarantee of future returns, trading prices, or ASX liquidity is implied or given.
The Prospectus (dated 2 July 2018) is jointly issued by PM Capital Global Opportunities Fund Limited (ACN 166 064 875, ‘PGF’), and PM Capital GO 2025 Limited (ACN 623 887 285, ‘GO2025’) and is an invitation to Australian and New Zealand resident investors to acquire up to 350,909,977 PTrackERS each having an Issue Price of $1.40 to raise up to $491,273,967.80 (Offer). PTrackERS will be exchanged for fully-paid ordinary shares of PGF at 30 June 2025, unless a redemption election at the option of the Securityholder has been made on terms described in the Prospectus. PTrackERS are not bank deposits. Capital and income of an investment in PTrackERS may go down as well as up due to various market forces. Accordingly, there is risk that investors may lose all or a substantial portion of their investment. PTrackERS will not be registered under the U.S. Securities Act of 1933, as amended (“US Securities Act) or the securities laws of any state or other jurisdiction of the United States. See the company announcements platform at www.asx.com.au for further information on PGF, GO2025, and PTrackERS.
1. Source: Morningstar Direct. To 31 December 2017. The annualised returns are the returns for each 5 to 9 year period to 31 December 2017. Peer group: Australia OE Equity World Large Blend. Differences in after fee investment return ranking between the above investment strategies managed by PM Capital relate to differences in fee structure and variations in portfolio composition. # Offered within the unlisted ‘FirstChoice’ products issued by Colonial First State Investments Limited (ABN 98 002 348 352, AFS Licence 232468).
Past performance is not a reliable indicator of future performance. These are not indications of actual, nor forecasts of future, performance of either PGF or PTrackERS © 2018 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Prospectus before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser.
*** As at 31 May 2018. PM Capital Global Companies Fund (ARSN 092 434 618) since inception on 28 October 1998 annualised return (after all fees and expenses) is 9.0% pa. vs the MSCI World Net Total Return Index of 4.5% pa.