ECP Asset Management unveils small and mid-cap LIC
Boutique Australian equities manager ECP Asset Management (ECPAM) has launched a new small and mid-cap listed investment company (LIC).
The equities manager released the prospectus for Barrack Street, which will target small and mid-cap listed Australian equities.
The offering is aiming for a maximum of $50 million, with the LIC looking at medium to long-term capital growth and income through fully franked dividends.
Barrack Street is looking to surpass a benchmark return of 8 per cent per annum.
ECPAM head Manny Pohl said the Barrack Street Investments LIC capital raising would be aiming for small self-managed super funds with fewer than five members, and will provide investors access to stocks outside the Australian Securities Exchange (ASX) top 50.
"ECPAM's philosophy is based on two hypotheses about market inefficiencies," Pohl said.
"One is that, on average, the market undervalues extremely high quality, capital efficient growth businesses. The second is the market tends to over emphasize temporary themes and short term factors."
The offer is valued at $1 a share and investors in the initial public offering will get a free 24-month option for every share they subscribe for, applicable at $1.
Morgans Corporate is the leader manager to the offer, which will close on 31 July.
AUTHOR
Malavika Santhebennur
Recommended for you
Infrastructure assets are well-positioned to hedge against global uncertainty and can enhance the diversification of traditional portfolios with their evergreen characteristics, an investment chief believes.
Volatility in US markets means currency is becoming a critical decision factor in Australian investors’ ETF selection this year.
Clime Investment Management is overhauling the selection process for its APLs, with managing director Michael Baragwanath describing the threat of a product failure affecting clients as “pure nightmare fuel”.
Global X will expand its ETF range of exchange-traded funds next month with a low-cost Australian equity product as it chases ambitions of becoming a top issuer of ETFs in Australia.
