As we approach the one year mark of listing the Ophir High Conviction Fund, we take a step back and delve more deeply into the reasons why it was listed, whilst also answering some common investor questions on the Listed Investment Trust structure.
When selecting a managed fund, investors have many choices to make: Aussie versus global, equities versus bonds, passive versus active. One choice which is often overlooked however, is on the topic of open-end versus closed-end funds. And although this may seem an unexciting topic, there are occasions where it may actually be a very important decision.
For almost one year now, the Ophir High Conviction Fund has been trading as an investment trust on the Australian Stock Exchange under the ticker code OPH. Our decision to convert this fund into a closed ended vehicle was taken after careful consideration, and involved detailed discussions with many stakeholders. Key to this change was our belief that this structure would allow for a better alignment on the primary common interest we share with our unitholders, that is to achieve the best possible investment returns over the medium and long term. Importantly, through the conversion to a listed investment trust (LIT) we didn’t raise any new capital from investors.
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