Lowell Resources Fund (ASX:LRT), an investor in the junior mining and energy sectors, is expected to list on the ASX shortly.
The fund is raising $5 million through the issue of units priced at a 5% discount to the net asset value (NAV) unit price of the fund.
Over an extended period of time, the fund has delivered a long-term track record of success.
10.4% per annum vs ASX 300 Resources Index -2.3% per annum
The 10- year return to investors of 10.4% per annum significantly outperforms the fund’s benchmark.
The ASX 300 Resources Index benchmark delivered a -2.3% per annum performance over the same period as the funds 10.4% per annum return.
For further comparative purposes, the ASX 200 Index delivered a 4.1% per annum return over the same period.
Taking the fund public to gain wider investor base
Until now the fund has been an unlisted public investment trust.
However, as the directors and the investment manager consider the global economy to be entering a more prosperous period for resource companies, the decision has been taken to open the fund to a wider investor base.
The important difference to the majority of LICs on ASX
The fund, as a listed investment trust, will have an important difference to most companies in the listed investment company (LIC) space.
Any and all profits will be distributed every year to unitholders either in cash, or if preferred, in additional units in the fund by way of a distribution reinvestment plan.