Aussies launch mining fund

Aussie investment house Bell Potter Securities has launched the Global Mining Investments (GMI) fund, which seeks to raise A$150 million immediately, with room for A$50 million in oversubscriptions. GMI is expected to list on the Australian Stock Exchange.

GMI will be the only listed Australian fund that offers exposure to large mining companies throughout the globe. U.K.-based Merrill Lynch Investment Managers will manage the fund from London.

The portfolio will largely mirror Merrill Lynch’s existing World Mining Trust, managed by the same team, which claimed total annual returns of 33.9% over the previous five years. The World Mining Trust has stakes in such companies as Falconbridge, South Africa’s Impala Platinum, and Aluminium Corp. of China.

Investors in GMI can buy options to double their investments by November 2006, which would raise the total capital to A$400 million.

The first dividend from GMI is expected at the end of the half-year ending Dec. 31, 2004, but most of the returns are anticipated to be in share price growth.

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