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One would think we could be major beneficiaries of this. In an...

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    One would think we could be major beneficiaries of this.

    In an attempt to limit the impact of foreign money flowing into our hot property market, the government may inadvertently trigger a flood of up to $3 billion a year into another arguably overvalued set of assets: small ASX-listed companies.
    The catalyst is a change, effective July 1, to the list of eligible investments for foreigners to qualify for the significant investor visa (SIV). While the minimum amount of $5 million stays the same, the investment mix will shift from government bonds and residential property to a minimum 40 per cent weighting to high risk equity investments.
    No less than $1.5 million will have to be invested in managed funds or listed investment companies that invest in ASX-listed emerging companies. Part of this requirement is that the managed fund must dedicate at least 80 per cent of its assets to firms with a market capitalisation of less than $500 million.

    http://www.copyright link/markets/flood-of-foreign-cash-headed-into-smallcap-stocks-20150605-ghe7ag
 
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