Ausbil Investment Management, in its capacity as Responsible Entity of the Ausbil MicroCap Fund, has lifted the temporary suspension of applications and withdrawals in the Fund following the declaration of an interim distribution, effective 24 May 2017.
Ausbil had determined that it was in the best interests of the unitholders of the Fund to temporarily suspend applications and withdrawals in the Fund in order to make an interim distribution. This decision was considered necessary in order to ensure the most appropriate and equitable outcome for all unitholders, that is to distribute income and net realised capital gains to all unitholders, including those wishing to withdraw, so that all unitholders receive their fair and equitable portion of distributable income.
The temporary suspension of applications and redemptions ceased with effect as at 5pm (Sydney time) yesterday, 24 May 2017. We have issued a new product disclosure statement (PDS) today, 25 May 2017.
Ausbil previously informed the market that it would lift the suspension on or before Wednesday, 31 May 2017.
After paying out a distribution of almost $40 million, the strategy remains above $250 million in FUM and Ausbil remains firmly committed to a viable and robust MicroCap strategy.
No change to the Fund’s objective or investment process
The Fund’s investment objective remains unchanged, being to achieve returns (before fees and taxes) in excess of the S&P/ASX Emerging Companies Accumulation Index (benchmark) over the medium to long term.
The Fund’s investment approach (how Ausbil manages the Fund) remains the same, and in fact Ausbil’s core investment process has been successfully implemented by Ausbil’s investment professionals over the past 20 years.
Experienced investment professionals
John Grace, who has been with Ausbil for over 15 years, is the lead portfolio manager of the Fund and Josh Clark continues to be the Fund’s equity analyst. John and Josh are supported by the broader Ausbil investment team, which has an additional 16 investment professionals. The team is led by Paul Xiradis, John Grace and Gian Pandit. The investment team consists of investment professionals that include the portfolio managers, chief economist, equity analysts,environmental social and governance (ESG) analysts, quantitative support and dealers.
With over 300 years of collective investment experience, the members of the investment team have each seen multiple market cycles and in combination are responsible for managing approximately $10 billion in funds under management as at 30 April 2017, predominantly in Australian equity portfolios.
Ausbil is committed to the Fund and the microcap sector and we believe that this provides important input to the broader Ausbil investment process. To this end, we have commenced discussion with a shortlist of preferred candidates to recruit an additional professional for the team.
Paul Xiradis, Executive Chairman of Ausbil, said: “We appreciate unitholders patience over the past four weeks and rest assured we believe that the decision to temporarily suspend applications and withdrawals was considered necessary in order to ensure the most appropriate and equitable outcome for all unitholders.”
If you have any queries on the above, please contact:
Head of Communications
Phone: +61 2 9259 0225
Fax: +61 2 9259 0222
Mobile: +61 400 343 093