Posted November 10, 2018 09:08:53 The next major dividend fund in the world, to be launched by Australian billionaire Paul Singer, is likely to be a fund focused on stocks, with some in the industry calling it the next big thing.
The fund, called EY-EM Capital Management, has raised more than $1.4 billion in venture capital and private equity funding since its inception in September, according to data from Fidelity.
It has a total value of $2.8 billion.
Its investment team includes venture capital firms Kleiner Perkins, Accel Partners and Benchmark Capital, and investment managers including Jana Partners, Capital Group and Kleiner.
EY-Em Capital Management will be the biggest fund to come online by a large investment firm, according the data, with its investment value set to surpass $1 billion by the end of 2021.
In comparison, the value of EY’s existing portfolio, including mutual funds, ETFs and bonds, was estimated at $3.1 billion in 2016.
While some investors are calling it a speculative fund, Singer is known for backing high-yield, dividend-paying ETFs.
He is also famous for building a hedge fund, the American Funds, that has returned a total of about $9 billion in returns over the last 10 years.
But he is unlikely to be the first fund manager to launch a dividend fund.
Last year, the investment firm S&P Capital IQ estimated that the next biggest fund, which is still being built, would be a $1 trillion-dollar fund focused around equities.
A total of five other major funds are expected to be established in the coming months, with Singer’s fund expected to beat those numbers, according data from the investment company BlackRock.
BlackRock chief investment officer Mark Jorgensen said he expected the next generation of fund managers to be focused on emerging markets and emerging technologies.
“I think that will be a very big driver of the fund industry in the years ahead,” he said.
Meanwhile, investors in the stock market have already been enjoying some good news.
The Dow Jones Industrial Average is up more than 12,000 points or 2.4 per cent in early trading on Thursday morning, after falling by almost 6 per cent the previous day.
That’s a big turnaround from the drop that started on Friday, when the index lost over 2,000.
The S&am Index of shares is up nearly 6 per, a significant boost for stocks after the Fed cut its key interest rate.
The Nasdaq is up about 4 per cent, and the tech index is up 2 per cent.
Topics:stockmarket,investment,wealth-and-academia,dividend,investor-relations,wealthfunds,investments-and_equity-markets,economics-and.money-and/or-monetary-policy,business-economics,stocks,finance,industry,australia,aotearoa-2600,aucks-2701First posted November 09, 2018 16:58:33More stories from New South Wales
