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.
Recommended for you
In the latest Meet the Manager profile, Money Management speaks with Michael Skinner, founder and managing director at Blackwattle Investment Partners.
Perpetual has seen AUM rise 6 per cent in the last quarter but the departure of a longstanding JOHCM fund manager led to outflows of $2.2 billion from his strategy.
Global fixed income fund Bentham Global Opportunities has been added to several major platforms, enabling it to be accessed more easily by financial advisers.
Following yesterday’s news about First Sentier Investors closing four investment teams, a second global asset manager has announced it is closing its only dedicated Australian fund.
