Perth-based Oceanic Asset Management Pty Ltd has withdrawn the prospectus for its planned uranium fund, which was aiming to raise up to $50 million, and plans to launch an 'energy' fund instead.
Perth-based Oceanic Asset Management Pty Ltd has withdrawn the prospectus for its planned uranium fund, which was aiming to raise up to $50 million, and plans to launch an 'energy' fund instead.
The withdrawal was attributed to the current volatility in financial markets but the fund's appeal has also been adversely affected by the weakness in the uranium price and in most uranium stocks since mid 2007.
Oceanic said it would refund application money received for the uranium fund, which was to be listed on the Australian Securities Exchange.
An Oceanc statement is pasted below:
The Directors of Oceanic Asset Management Pty Ltd (Manager) today announce that due to the volatility of current financial markets, the Directors of the Oceanic Uranium Fund Limited together with the Manager have unanimously agreed to withdraw the application to extend the date of the Supplementary Prospectus and fully refund existing investors to date with application monies received.
Oceanic Asset Management Pty Ltd remain committed to the uranium sector and the long-term attractions of Australia's junior and emergent companies which continue to represent unique long-term investment opportunities into this sector.
Despite the decision to withdraw the LIC on the ASX, Oceanic Asset Management Pty Ltd will continue with it's plans to launch a UK domiciled collective investment scheme.
The CF Uranium Focused Energy Fund will be ready for launch and trading Q2 2008. The Fund offers investors the opportunity to participate in an actively managed portfolio of listed and unlisted investments in nuclear, traditional and "clean" energy sources and associated operations.
The Fund will be managed by Oceanic Asset Management Pty Ltd, a Perth based fund manager with a proven track record in managing natural resources focused investment portfolio including energy and uranium investments. The Manager's executive management is led by Mr Elliott Rowton, Head of Funds Management and Mr Stuart Bell, both experienced investment advisers.
In July 2005, Oceanic Asset Management Pty Ltd with Capita Financial Services, established a UK domiciled Open Ended Investment Company - "CF Natural Resources OEIC".
This umbrella structure allows for a range of sub-funds with different investment objectives to be set up under the main structure. Oceanic Asset Management Pty Ltd currently manage two sub-funds, the flagship "CF Australian Natural Resources Fund (currently $160m of AUM)" and a second sub-fund "CF Global Resources Fund (currently $11m of AUM)" that both exist under this umbrella.
In other news, Oceanic's second sub-fund "CF Global Resources Fund", which was successfully launched in December 2007, has now reached in excess of $11m assets under management, with the capacity and ambition to grow to $500m.
The Chairman of Oceanic Asset Management Pty Ltd said: "With our flagship fund's imminent soft closure approaching, our next focus will be building our suite of funds to include the CF Global Resources Fund and CF Uranium Focused Energy Fund.
These Funds will adopt the same high conviction investment style to the Australian Natural Resources Fund but will apply innovative instruments allowed under their UCITs 3 structure aimed to reduce volatility without compromising their performance potential."
Collectively, Elliott Rowton and Stuart Bell together with the investment team at Oceanic, share an invaluable mix of portfolio management experience and independence.
"Elliott and Stuart ensure the funds achieve long-term capital appreciation by active investment opportunities consisting of junior, mid-cap and large-cap companies, involved in the world-wide extraction and processing of natural resources and associated operations," Mr Jones said.
