The PM Capital Global Opportunities Fund (PGF) and its subsidiary, PM Capital GO 2025, have jointly issued a prospectus for the offer of a listed investment company (LIC) security specifically targeting SMSFs.
PTrackERS, which stands for Portfolio Tracking Exchangeable Redeemable Securities (Converting Security), will provide easier access to international equities for SMSFs, whose portfolios are traditionally concentrated in Australian assets.
They will provide SMSFs with the choice in seven years to redeem based on net tangible assets (NTA) or stay, which provides a redemption safety net if the securities are trading on-market at a discount to NTA.
PM Capital chief investment officer and chairman Paul Moore told selfmanagedsuper the LIC is aiming to solve the perennial problem in the LIC market of whether they sell at a premium or discount in the short term depending on market sentiment.
With this LIC, SMSF investors can redeem in seven years at NTA and therefore do not have to consider whether it trades at a premium or discount.
“The shareholder does not necessarily receive the underlying performance of the manager depending on when they buy the discount or a premium. So the product is basically redeemable equity and the unique feature is the fact that you can redeem in seven years,” Moore said.
“We would expect to see large demand from the SMSF market. The reason we did the initial product offering originally three or four years ago was to allow SMSF clients to invest offshore.
“The benefit here is when he invests, he’s investing 100 cents in the dollar, not 97 cents, because we’re paying all the costs upfront.”
PM Capital will pay all offer costs. On day one, PTrackERS investable assets will equal the issue price and the NTA will not include any soft intangible receivables from the investment manager. A selling holder has the choice of selling on-market or redeeming based on NTA on 30 June 2025.
PTrackERS are non-dilutive to NTA before tax plus franking credits for both PGF and GO 2025. Dividends can be franked where franking credits are available.