Queensland-based funds manager MFS says it is not planning to create a second HFA, as it seeks to raise up to $100 million to set up a company to invest in local and international alternative funds managers.
The prospectus for MFS Alternative Asset Ltd was launched on Monday, with applications due to close on June 21. The new company will be managed by MFS Investment Management Ltd, a wholly-owned subsidiary of MFS. Craig White, deputy chief executive of MFS Ltd, said the new venture gave retail investors the opportunity to invest alongside MFS in a sector that was growing more and more popular. He said investors should look at it as a growth investment, rather than an income investment. White said MFS already had some funds managers in mind, but he could not name them yet. He said there were no plans to float the new company at this stage, but said this could change if circumstances changed. Earlier this year MFS floated hedge fund of funds, HFA. HFA made its debut on the Australian stock exchange April 28 at $1.10 and is currently trading around $1.30.
There is one investment area where Insignia’s $180 billion super arm has not lost money for the past 17 years, which is what it calls the insurance-related investments. The alternatives strategy is gaining popularity among asset owners due to its diversification benefit, but Insignia’s super and asset management investment chief Dan Farmer warns it is a space where investors can suffer if they “stumble in without doing the homework”.
Darcy SongJanuary 23, 2025
