Ausbil MicroCap Fund

Quarterly Fact Sheet - September 2017

‘The Ausbil MicroCap Fund1 provides investors with a diversified portfolio of high quality, dynamic companies outside the top 200.’

What are MicroCaps?
Micro-capitalisation (“MicroCap”) stocks represent the ‘little known’ investment opportunities outside the S&P/ASX 200. These businesses tend to have the potential to grow faster than their bigger counterparts.

Why MicroCaps?
The Microcap stock universe is one of the most dynamic. From a portfolio management perspective, it is also among the most inefficient, as the investment universe is under-researched by both institutional investors and the broking community. Through superior proprietary research, we believe these inefficiencies can be exploited to deliver compelling investment opportunities.

Investment aim
The aim of the Fund is to outperform the S&P/ASX Emerging Companies Accumulation Index over the long term by investing in ASX listed companies outside the top 200.

Key features of the strategy
• Invest in 35-60 industrial and resource MicroCap stocks
• Process focuses on companies with sustainable business models and positive earnings revisions
• Aims to provide investors with long-term capital growth

Key benefits of the strategy
• Managed by a dedicated and experienced specialist MicroCap team
• Benefit from Ausbil’s existing macroeconomic and sector analysis

Investment style
Ausbil utilises a ‘core’ approach and seeks the best opportunities within the MicroCap universe. Our focus is on identifying liquid, well positioned and appropriately structured companies likely to enjoy positive earnings revisions over the coming period. The process is summarised in the diagram below:

Latest Videos

7 Nov 2017

Ausbil MicroCap Fund portfolio update

07 Nov 2017 - Ausbil MicroCap Fund Portfolio Manager Mason Willoughby-Thomas and Equities Analyst Arden Jennings talk portfolio positioning, fund activity and market sentiment.

17 Jun 2016

Looking for small cap stocks with a global footprint

17 Jun 2016 - Ausbil MicroCap Fund, Portfolio Manager Tony Waters talks about picking stocks that deliver earnings growth above market expectation and how small caps stocks with a global outlook have much greater upside than in the past.

24 Oct 2012

Small to Mid Cap stocks bounce

12 Apr 2012 – Ausbil, Portfolio Manager Micro Caps, Tony Waters, talks about strength in earnings which have translated into strong gains in the first quarter.

12 Apr 2012

Small to Mid Cap stocks bounce

12 Apr 2012 – Ausbil, Portfolio Manager Micro Caps, Tony Waters, talks about strength in earnings which have translated into strong gains in the first quarter.

17 Oct 2011

Small to Mid cap strength set to continue

06 Dec 2010 – Ausbil Dexia, Portfolio Manager, Micro Caps, Tony Waters, talks about the strength in this segment of the market, where they have made money and their top 3 holdings.

17 Oct 2011

Ausbil MicroCap Fund

23 Sep 2010 – Ausbil Dexia, Portfolio Manager, Micro Caps, Tony Waters, takes a look at the mid to small cap segment of the market and how these stocks have performed this year.

Product Features 2

Characteristic Comments
Benchmark S&P/ASX Emerging Companies Accumulation Index
Minimum Investment $20,000
Pricing Frequency Daily
Distribution Timetable Semi-annually: end June and end December
Fees Management fee: 1.20% p.a.
Performance fee: 20.5% of the benchmark outperformance (after base management fee)
Performance hurdle: S&P/ASX Emerging Companies Accumulation Index + 1.20%


Performance 2

Period Fund
Benchmark4% Out/Under
3 months 11.15 8.86 2.29
6 months 6.99 3.78 3.21
FYTD 11.15 8.86 2.29
1 year -2.35 -4.28 1.93
2 year pa 13.34 15.44 -2.10
3 years pa 16.80 7.46 9.35
5 years pa 21.72 0.08 21.64
Since inception pa
Date: February 2010
25.46 0.67 24.79

Sector allocations 2

  Fund% Index%4 Tilt%
Energy 3.84 4.56 -0.72
Materials 25.31 19.48 5.83
Industrials 22.77 12.18 10.59
Consumer Discretionary 17.01 11.03 5.97
Consumer Staples 1.21 2.34 -1.13
Health Care 4.12 12.24 -8.12
Financials 7.53 13.44 -5.91
Information Technology 8.05 17.98 -9.93
Telecommunication Services 3.12 2.13 0.99
Utilities 1.42 0.48 0.94
Real Estate 0.00 4.14 -4.14
Cash 5.62 0.00 5.62
Total 100.00 100.00 0.00


5 key stock holdings 2

Company Name Industry
Bingo Industries Commercial & Professional Services
GTN Limited Media
HUB24 Diversified Financials
Imdex Materials
Lynas Materials


1. Ausbil MicroCap Fund (AAP0007AU).
2. All data is as at 30 September 2017.
3. Figures assume that distributions are reinvested and are net of fees but before taxes.
4. S&P/ASX Emerging Companies Accumulation Index.

Unless otherwise specified, any information contained in this publication is current as at the date of this report and is prepared by Ausbil Investment Management Limited (ABN 26 076 316 473 AFSL 229722) (Ausbil). Ausbil is the issuer of the Ausbil MicroCap Fund (ARSN 130 664 872) (Ausbil MicroCap Fund, Ausbil MicroCap Fund or Fund). This report contains general information only and the information provided is factual only and does not constitute financial product advice. It does not take account of your individual objectives, financial situation or needs. Before acting on it, you should seek independent financial and tax advice about its appropriateness to your objectives, financial situation and needs. Securities and sectors mentioned in this report are presented to illustrate companies and sectors in which the Fund has invested and should not be considered a recommendation to purchase, sell or hold any particular security. Holdings are subject to change daily. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested. Past performance is not a reliable indicator of future performance. Unless otherwise stated, performance figures are calculated net of fees and assume distributions are reinvested. Due to rounding the figures in the holdings, breakdowns may not add up to 100%. No guarantee or warranty is made as to the accuracy, adequacy or reliability of any statements, estimates, opinions or other information contained herein (any of which may change without notice) and should not be relied upon as a representation express or implied as to any future or current matter. You should consider the Product Disclosure Statement which is available at before acquiring or investing in any of our products the fund.