Following a change in its investment mandate, financial planning group Dixon Advisory’s listed multi-manager Asian Masters Fund (AMF) will be able to invest in managers that can use short-selling.
The fund’s investment universe has been expanded to allow it to put 20 per cent of its capital into fund managers that have the ability to hedge investments through short-selling, Dixon Advisory managing director of funds management Alex MacLachlan said.
The change comes after he said the fund’s investment mandate had remained static.
“The fund has doubled in size through the capital growth of its investments and new capital raisings while the NTA (net tangible assets) has outperformed the MSCI Asia ex-Japan benchmark by over 25 per cent,” MacLachlan said.
“Attractive investment opportunities are now available to the fund that were not accessible at the fund’s inception.
“However, while the fund has grown, the investment mandate remained static, which limited the fund’s ability to pursue several potentially attractive fund investments that the manager, Dixon Advisory & Superannuation Services identified.”
AMF will also raise from 10 per cent to 20 per cent the level of investments permitted in mangers that can gear their portfolios by over 10 per cent of their capital, MacLachlan said.
Additionally, the fund may also take a more active role in risk management by now being able to invest in products for the purpose of hedging equity and currency market exposure, he said.
The changes will take effect from 22 July 2010.
AMF’s underlying managers include Value Partners High Dividend Yield, Aberdeen Asian Opportunities, HSBC India and Treasury New Asia.
The fund has around $100 million in assets under management.
