For Immediate Release
In April 2021, Ausbil celebrated the first anniversary of the Ausbil SmallCap Fund with the portfolio posting a performance of +82.31% net of fees, (as at end April 2021) compared to the benchmark (S&P/ASX Small Ordinaries Accumulation Index) return of +39.78%, delivering +42.53% of outperformance.

Small-capitalisation (small-cap) stocks represent a ‘dynamic’ investment opportunity outside of the S&P/ASX 100. These businesses have moved beyond being micro caps, having grown in size and ambition, but still offer the potential for higher long-term growth than their large-cap counterparts. Companies that typify the opportunity in this segment include names such as Uniti Group, Galaxy Resources, City Chic Collective, Seven Group Holdings and Lovisa, to mention a few.

“We are passionate about small company investing because of the significant and unrealised value potential they offer,” says Arden Jennings, Portfolio Manager Small & MicroCap. “There is significant upside potential for this segment, one we have seen play-out since the pandemic with small caps significantly outperforming mid and large caps.”

“Our process is calibrated around risk-adjusted return, not momentum following, so we can be confident that the quality of our businesses translates into outperformance over time” says Mason Willoughby-Thomas, Portfolio Manager Small & MicroCap.

Ausbil’s SmallCap Fund aims to achieve returns (before fees and taxes) in excess of the S&P/ASX Small Ordinaries Accumulation Index over the medium to long term. The process focuses on companies with sustainable business models and positive earnings revisions. The Fund can hold 80-100% in Australian securities, and 0-20% in cash or cash-like securities.

 
More information
For more information on the Ausbil Australian SmallCap Fund, please visit the Fund’s product
page at www.ausbil.com.au.