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.
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.
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
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 investment report
The Fund predominantly invests in a portfolio of listed small and microcap Australian equities which are primarily chosen from outside the S&P/ASX 200 Index constituents. The Fund is designed for investors who wish to benefit from the long-term capital gains available from share investments and who are comfortable with fluctuations in capital value in the short to medium term.
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