Some interesting news for investors looking at Australian listed small cap equities - Last week news of changes to the requirements for foreigners to qualify for the significant investor visa (SIV).
From July 1st 2015 the minimum amount of $5m will stay the same, but the investment split will shift from residential property and government bonds to a minimum 40 percent invested in ASX equities with a market capitalisation of less than $500m.
This means at least $1.5m of each $5m SIV will need to be invested into ASX Small Cap companies.
Estimates from one Goldman Sachs equity strategist are that up to 2000 significant investor visas could be taken up a year. This would equal cash inflows of around $3 billion pa.
I have put a table together listing ASX companies trading around the $500m mcap and have included some trading a little over in case their values dropped.
Will be interesting to see how these money flows into small caps has on some of these companies over the coming months.
Following some further correspondence from a fellow small cap investor - see below a link from the government website showing figures relating to the SIV's
Click here TO VIEW : Significant Investor visa statistics