US Masters Residential Property Fund (Placement)
 
Efforts towards capital growth: US Masters Residential Property Fund (ASX: URF) is raising funds by Walsh & Company Investments Limited via Unit Purchase Plan by issuing up to 43.9 million units to raise up to $85.7 million on 13^th September 2016. The fund has the largest institutional owner of townhouses in NYC metro with 1500 housing units. This fund has been reported to have entered the American market buying single-family homes for a group of established rental houses in states including Texas, Georgia and Ohio. It is now focusing on the multi-family residential property syndication through the online platform CrowdStreet. The funds raised would be used for URF’s investment strategy which includes the renovations of properties in the portfolio and acquisitions of new properties consistent with the investment strategy of the fund at attractive valuations. The funds would also be used for the general business and financing purposes which includes professionally leasing and managing the properties for rental income and long-term capital growth. Meanwhile, Alex MacLachlan is the Chairman of the Fund’s Responsible Entity.
 

Offer Details (Source: Company Reports)
 
Weak financials: The group’s financial performance has been weak wherein the group reported a pre-tax operating loss of $29,057 in the recent half, from a $31.75m profit in the corresponding period last year. The overall loss for the half year surged to $27.29 million owing to impact by an unrealized foreign exchange loss on US-based assets of $14.60 million. The rental revenue is expected to continue to grow during the remainder of 2016 and in 2017 as more completed properties are delivered from the renovation pipeline. Moreover, the stock has fallen 12% in the last three months (as of August 23, 2016).
 
Antipodes Global Investment Company Ltd (IPO)
 
Providing access to a long-short global security investment portfolio: Antipodes Global Investment Company Ltd. (ASX: APL) is seeking to raise up to $220 million via its IPO and had the ability to accept an additional $110 million in oversubscriptions. The IPO had an issue price of $1.10 per share and investors would also receive one option for every share issued (under the IPO). The IPO would close in September 2016 and is also expected to list in October 2016. Meanwhile, the retail investors would have access to a long-short global security investment portfolio with active currency management by investing in the IPO. APL was also based in Antipodes Partners' managed fund, the Antipodes Global Fund, which provided a 7.4% net return last year. APL has significantly outperformed the MSCI All Country World Net Index and ranked second out of a pool of 54 global equity funds, based on Morningstar's institutional sector survey (June 2016). Moreover, Antipodes Partners' chief investment officer (CIO) and lead portfolio manager is Jacob Mitchell, and the Australian retail investors were traditionally weighted towards Australian-domiciled investments.
 
Market driven risks: The Company’s performance would depend upon the ability of the manager to invest in a portfolio which generates a return for the company. The Portfolio would be exposed to market risk given the current challenging situation.

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