John Wells from Leadenhall Capital Partners speaks to James Dunn at The Inside Network’s Alternatives Symposium in Healesville, VIC on mitigating risk and unlocking yield in Insurance-Linked Securities. The Inside Adviser
Nick Miller from Fortitude Investment Partners speaks to James Dunn at The Inside Network’s Alternatives Symposium in Healesville, VIC on unlocking alpha in the lower mid-market private equity space. The Inside Adviser
Ausbil tips Global Small caps as the asset class set to outperform
Global small caps have typically been an avoid for investors during a market downturn or volatile times. Usually this asset class does well during an economic recovery. And the past few months are a good example the small caps sector bouncing back strongly earnings recovered. The question now, is whether this bounce is likely to continue or whether it has run out of steam now the pandemic is largely over?
According to Ausbil, who run the Global Small Caps fund, “small companies offer the potential for growth that can exceed their larger peers over the long term, an assertion supported by the data. Small Companies offer investors early stage entry into names destined to become future global titans. Ausbil’s global small-cap team answer some key questions on how to access such unrecognised opportunities.”
Launched in May 2018, the Ausbil Global SmallCap Fund aims to exploit the inefficiencies within the asset class by investing in quality companies with unrecognised growth potential at attractive valuations.
Ausbil also go on to say that “small companies offer the potential for growth that can exceed their larger peers over the long term, an assertion supported by the data. Small Companies offer investors early stage entry into names destined to become future global titans.” And the key is to unrecognised opportunities that offer the potential for growth that can exceed their larger peers over the long term.
According to Zenith, the Fund “offers investors an active, relatively diversified, style-neutral international smaller companies exposure. Zenith’s conviction in the Fund is underpinned by the experience of the portfolio managers and the robust investment process, which has produced attractive investment outcomes since inception. In addition, we are encouraged by the steady growth in assets in the Fund, which strengthens business stability.”
The investment strategy uses both qualitative and quantitative analysis and tools alongside a disciplined risk management process, with the aim of producing consistent and risk-controlled outperformance. The Fund’s universe is the 23 developed markets that comprise the MSCI World Small Cap Index.
Since inception in the Fund has delivered a return of 14.36% pa (net of fees) to end November 2021, outperforming the MSCI World Small Cap Index by 3.00% pa.
Hik Chadirchi, National Manager, Wholesale Clients says, “global small caps are currently under-represented in investor portfolios here in Australia. Clients with a long-term investment horizon may like to consider the opportunities that exist when investing in dynamic smaller companies in developed markets across around the world.”
“We recently celebrated three years of performance, with alpha coming across some of the most complex and challenging markets we have seen in years,” said Tobias Bucks, Portfolio Manager, Global SmallCaps. “Looking forward, we will continue to aim to capture the growth of future industry titans at the start of their journeys much as we have done with success over the last three years.”
