Ausbil MicroCap Fund

Quarterly Fact Sheet - December 2019

‘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 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.

Click here for the latest report.

Latest Videos

Ausbil MicroCap Fund talks 1H18 reporting season

23 Mar 2018 - Ausbil MicroCap Fund Portfolio Manager, Mason Willoughby-Thomas & Co-Portfolio Manager, Arden Jennings provide an overview of 1H18 reporting in the mid to small cap segment, an update on their fund, and major holdings.

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.

Product Features²

Characteristic	Comments
APIR	AAP0007AU
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%

Performance³

Period	Fund Return⁴%	Benchmark⁵%	Out/Under Performance%
3 months	9.41	-3.31	12.72
6 months	14.92	9.93	4.99
FYTD	14.92	9.93	4.99
CYTD	42.01	30.95	11.06
1 year	42.01	30.95	11.06
3 years pa	18.60	7.21	11.39
5 years pa	20.94	11.45	9.49
7 years pa	20.91	4.12	16.79
Since inception pa Date: February 2010	24.49	2.46	22.03

Sector allocations³

	Fund%	Index%⁴	Tilt%
Energy	8.49	8.92	-0.44
Materials	1.19	21.45	-20.26
Industrials	19.00	11.14	7.86
Consumer Discretionary	20.90	16.91	3.99
Consumer Staples	1.95	2.20	-0.25
Health Care	1.48	14.79	-13.32
Financials	10.41	6.60	3.82
Information Technology	16.00	12.96	3.04
Communication Services	11.84	3.24	8.60
Utilities	0.00	0.00	0.00
Real Estate	5.27	1.79	3.47
Cash	3.47	0.00	3.47
Total	100.00	100.00	0.00

5 key stock holdings⁶

Company Name	Industry
EML Payments	Financials
Electro Optic Systems	Industrials
John Lyng Group	Industrials
Karoon Energy	Energy
Uniti Group	Telecommunication

1. Ausbil MicroCap Fund (AAP0007AU).
2. Ausbil has the discretion to waive these minimums
3. All data is as at 31 December 2019.
4. Figures assume that distributions are reinvested and are net of fees but before taxes.
5. S&P/ASX Emerging Companies Accumulation Index.
6. Top 5 stocks sorted alphabetically

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 www.ausbil.com.au before acquiring or investing in any of our products the fund.