-- L1 Group (ASX:L1G) said L1 Gold Fund generated AU$950 million in its initial public offering and is expected to start trading on the Australian Securities Exchange on Friday, according to a Monday filing with the bourse.
L1 Gold Fund will push to deliver positive absolute returns for shareholders over the medium to long term, targeting investments in domestic and international gold-sector securities, as well as a secondary allocation "to opportunistic investments" in other precious-metal sectors, per the filing.
Starting Friday, L1 Group will be entitled to receive a management fee from L1 Gold Fund of 1% of the value of the portfolio plus GST per year, and a performance fee of 20% plus GST of the portfolio's outperformance as evaluated over six-month periods, subject to a high water mark.
L1 Group has committed to an investment of AU$112 million into L1 Gold Fund.
L1 Group's shares were down nearly 1% in recent Monday trade.