The self-managed super fund (SMSF) sector's positive reaction to diversification beyond the Australian Securities Exchange's (ASX) top 50 stocks and cash, drives Barrack Street Investments (BST) successful ASX listing.
BST will be managed by boutique Australian equities manager ECP Asset Management (ECPAM), headed by Dr Manny Pohl.
In raising the $16million for its successful listing via its initial public offer, BST targeted small super funds with fewer than five members.
Pohl said BST's capital raising success was down to its investment focus on small and mid-cap ASX stocks.
"It's widely acknowledged that SMSFs are heavily weighted to ASX top 50 companies and cash," said Pohl.
"We are delighted that our message of diversification beyond the top 50 ASX stocks resonated with the SMSF sector and others."
The aim of the fund is to gain long-term capital growth and income via fully franked dividends.
BST is scheduled to list on the ASX on 14 August 2014 with an objective of exceeding a benchmark return of eight per cent per annum.
