A new investment manager has assembled a high-profile advisory committee, as it sets out to build a portfolio of global disruptors that will deliver high returns to investors.
Evans and Partners Investment Management has launched an offer for the Global Disruption Fund, seeking up to $150 million and with a required minimum subscription of $50 million. The fund will be listed on the Australian Securities Exchange.
The fund’s product disclosure statement says it will invest in global companies that have proven abilities to disrupt and the potential to continue to disrupt existing markets, industries and companies. It will also invest in smaller companies with disruptive potential.
The majority of investments are expected to be in overseas companies. Some investees may be private companies.
Investee companies will have to have an appropriate capital structure to fund research and development, as well as growth.
“Disruptive innovation, or simply disruption, is the term used to describe the role innovation plays in significantly transforming markets, industries and companies,” the disclosure statement says.
“Investors can benefit from exposure to successful disruptors. It provides exposure to innovators and is also a way to hedge against the disruptive impacts in many industries.”
The investment manager is Evans & Partners Investment Management. The responsible entity is Walsh and Co Investments.
The manager will take advice from an investment committee that includes former Telstra chief executive David Thodey, Wesfarmers managing director Richard Goyder, Seek co-founder Paul Bassat, Suncorp director Sally Herman and the director of the Center for the Digital Future at USC Annenberg Jeffrey Cole.
The committee will be chaired by David Evans, who is executive chair of Evans Dixon and previously managing director of Goldman Sachs JB Were.
The committee will also draw on the expertise of a portfolio consultant, Raymond Tong, who is the senior research analyst at Evans and Partners. His background is as a securities analyst specialising in telecommunications, media and gaming.
The investment committee will recommend suitable investments.
Examples of “key themes” cited in the disclosure statement include “the growth of ecommerce over traditional retail, the evolution of payments systems and artificial intelligence.
The portfolio is not expected to generate regular distributions. The aim is to provide long-term capital growth.
There are risks: “It may be difficult to predict technological, operational, financial and security price performance of securities in a constantly evolving disruptive environment,” the disclosure statement says.
The investment management fee is 95 basis points. In addition there is a responsible entity fee of eight basis points and an administration fee of 25 basis points.