Fisher Funds crosses Tasman for new small-cap investment

The Australian equity market is the "next logical step" for Fisher Funds Management as it looks outside the local sharemarket, says managing director Carmel Fisher.

Fisher Funds last week said it planned to launch a $50 million NZX-listed fund to invest in small-cap Australian companies.

The fund, Barramundi, would cater for investors who preferred Fisher Funds' Kingfish product - an NZX-listed fund - over managed funds. "We want to offer the same sort of vehicle in Australia," Fisher said. "It's really in response to investor demand.

"We've had feedback from investors to say they've had a good experience with Fisher Funds managing money in New Zealand equities but they just can't keep putting more and more money into the New Zealand equity space.

"Australian equities was the logical next step for us."

Fisher said Barramundi would employ the same investment approach as Kingfish.

"We're stock pickers, we don't have to cover the entire market. We just have to find enough good companies to put in the portfolio."

The firm's Australian Growth Fund, invested through a managed fund, had produced returns of 30 per cent in 12 months during a golden run for the Australian market, which looked unlikely to continue.

But Fisher said she did not expect Barramundi's returns would mirror the Australian market's overall performance.

"We really are investing in that bottom end of the market, where most New Zealand investors couldn't otherwise access stocks because these are not companies that are well-researched, even in Australia.

"Most New Zealand investors who want exposure to Australia will have the banks, the big industrials and the resource companies, but they don't generally look at companies below the top 100, whereas that's where Barramundi's going to be investing."

Fisher Funds is seeking $50 million in an initial public offer for Barramundi shares, with provision for oversubscriptions of up to $30 million.

The prospectus will be registered next Thursday.