Financial Services Fund launched as part of Charter Pacific Expansion
An innovative financial services investment fund to be managed by two former QIC (Queensland Investment Corporation) senior executives will be launched to wholesale investors as part of Charter Pacific Corporation Limited’s (ASX: CHF) expansion into the financial services sector.
The listed investment company today announced the establishment of its subsidiary, Charter Pacific Funds Management Limited, which will be headed up by Managing Director, Stephen Cleugh who previously managed an $8 billion fund at QIC’s Global Equity Division.
Mr Cleugh will be joined by Julie Kincade, the former QIC Senior Equities Dealer who oversaw the development of QIC’s investment platform technology.
“We will be launching various funds targeting the wholesale and professional investor market, including a Financial Services Equity Fund and an Absolute Return Trading Fund which we will commence in the next two months,” Mr Cleugh said.
“These will be followed by a Balanced Growth Fund and a High Alpha Equity Fund.”
Mr Cleugh, who has been a portfolio manager and financial services analyst for 20 years, said the Financial Services Equity Fund was innovative and as a result would be of strong interest to wholesale investors, particularly superannuation funds.
“There is also a strong international market for a fund that is solely focused on Australian banks, insurance, mortgage and investment companies, given there are no immediate signs of a serious downturn in the local economy,” Mr Cleugh said.
Managing Director of Charter Pacific, Kevin Dart, said the company’s expansion into funds management is part of a strategy to expand its presence in the financial services sector.
“The formation of a funds management subsidiary is expected to deliver consistent earnings to Charter Pacific and facilitate regular dividend payments to shareholders in the future,” Mr Dart said.
“We also expect that the valuation methodology that is currently applied to Charter Pacific will change from being based on a discount to NTA to an earnings based valuation.”
Charter Pacific has also announced the appointments of former Clayton Utz partner, Roger Byrne, as Chief Operating Officer and Chartered Accountant, Alan Beck, as Chief Financial Officer as part of the company’s expansion into the financial services sector.
About Charter Pacific:
Charter Pacific Corporation is a diversified investment company that listed on the Australian Stock Exchange in 1989. Today the company invests in a diverse range of listed and unlisted entities across a broad range of industries. Its current investments include:
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Charter Pacific Capital Limited (corporate advisory house),
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Charter Pacific Funds Management Limited,
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ChemGenex Pharmaceuticals (ASX: CXS, NASDAQ: CXSP),
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US based investment bank Global Markets Capital Group,
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Monteray Group (ASX: MRY) superannuation administration platform provider;
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OEM NuTech.