NEW YORK (May. 13)
Lawrence G. Laskey, president of the First American Israel Mutual Fund, today announced that preliminary prospectuses relating to a proposed public offering of its shares in the amount of $27, 500, 000 are now being distributed. Paine, Webber, Jackson & Curtis will manage the investment banking group being formed to underwrite the offering.
The proposed offering marks the first time that an undertaking such as this will be distributed in the United States through the regularly accepted channels of brokerage and investment firms, Mr. Laskey said.
The purpose of the Fund is to provide a means through which American investors may participate in a portfolio consisting primarily of Israeli securities which will be balanced to provide to the extent feasible opportunities for long-term capital growth consistent with preservation of principal and a reasonable income. It is anticipated that ultimately 80 percent of the Fund’s assets will be invested in Israeli securities, with 20 percent being invested in the United States.
Shares of the Fund are to be offered at a price of $10 per share, with minimum subscriptions of $500 per person Payment for the shares may be made in United States dollars, or State of Israel Bonds of the Independence issue or First Development issue, or any combination thereof. Mr. Laskey declared that the Fund does not anticipate making a continuous public offering of its shares after the completion of the proposed public offering.
In announcing the proposed offering, Mr. Laskey observed that “the establishment of the Fund, which has the approval and support of the Government of Israel, represents the realization of the hopes of many individuals both here and in Israel to market an open-end fund of this kind in the United States through normal banking channels.”