The Fund is actively managed and is primarily invested in companies listed (or expected to be listed) on an Australian securities exchange which, at the time they are first invested, are not included in the S&P/ASX 100 Index and have a minimum market capitalisation of $100 million.
We believe that company earnings drive share prices over the medium-term. We use a disciplined fundamental research process to identify undervalued companies where we have conviction in medium-term earnings delivery. We focus on earnings-based valuations, assessment of how sustainable a company’s business model is and consideration of earnings risk. We believe that this focus can deliver strong and consistent returns over the long-term. Given the breadth of the Australian small companies market, we believe companies with this profile can be found at any point in the market cycle.
The portfolio managers have a proven and repeatable investment process, focused on in-depth fundamental research at the company level.* This approach is designed to create a portfolio of compelling high conviction ideas for our investors.
We typically hold 30–50 stocks which score well on combined earnings-based valuation and sustainability measures, with the focus on diversification and stock specific risk management.
*The past performance and experience of the portfolio managers was achieved managing a different fund with substantially the same investment strategy as the Fund. Past performance is not a reliable indicator of future performance.