IPO to provide pathway for SMSFs to access high quality small and mid cap ASX stocks
Barrack Street Investments (BST), the current IPO from Boutique Australian equities manager ECP Asset Management (ECPAM), headed by Dr Manny Pohl, has received a ‘Recommended’ rating from US and Australian based research house Independent Investment Research (IIR).
The offering is targeting a minimum of $16million and a maximum of $50million, with the LIC aiming to achieve medium to long-term capital growth and income through fully franked dividends.
Barrack Street will aim to exceed a benchmark return of 8% p.a.
In assigning, IIR stated: “BST offers investors the opportunity to invest in a professionally managed portfolio of domestic equities, the portfolio of which will be managed by a portfolio manager who has extensive experience in the investment industry. The Manager has a disciplined investment approach, which seeks to identify a universe of companies that exhibit quality earnings and competitive advantage in their respective industries.
The portfolio will be concentrated so investors should be comfortable with the expected additional volatility that the portfolio will experience compared to the market.
An important aspect of the structure is that the Manager is 100% owned by employees and the investment team will hold shares in BST, thereby aligning the interests of the Manager and shareholders.”
Dr Pohl has achieved outstanding results in the small and mid-cap segment during his 30 years of investment experience. In the period from inception in July 2013 to March 2014, ECPAM has returned 24.8% against a benchmark return of 5.3%, and the ASX Small Ordinaries Accumulation Index which has seen a modest return of 5.4%.
The offer is priced at $1.00 a share and investors in the IPO will receive a free 24 month option for every share they subscribe for, exercisable at $1.00. Morgans Corporate is Lead Manager to the Offer, which is scheduled to close on 31 July.
About ECP ASSET MANAGEMENT
ECP Asset Management (ECPAM) manages funds on behalf of wholesale investors and has the primary objective of investing in high quality listed companies. We have a distinct philosophy of investing in businesses that fit a certain profile based on profitability, industry position and growth opportunities. Its investment team has a proven track record of successful investment in both the listed and unlisted markets. The combination of expertise acquired in these areas is a unique feature that differentiates ECPAM from other offerings in the Australian investment arena.
For further information please contact:
Peter White or Simrita Virk
0416 0413 90 / 0434531172
The information in this publication was authorised by EC Pohl & Co, ACN: 154 399 916, AFSL No. 421704. The publication is for information purposes only and should not be taken as a personal recommendation. Before deciding to invest ensure you consider this information in light of personal circumstances, obtain a prospectus or product disclosure for any investment product and take professional financial advice where appropriate. IIR was commissioned by Barrack Street Investments Ltd to prepare the research report.