Strategy Overview

Key Facts

Why invest?

Active Exposure

Small-cap companies present unique investment opportunities:

  • Market inefficiencies can be large in small-caps as they tend to be under-researched companies
  • Small-caps are often not well known and are at an early stage in development, which creates large alpha opportunities
  • Limited liquidity can provide opportunities at times of co-investment, especially for micro caps where demand for this support can be greatest
  • The limited correlation between small-caps and the broader market makes it a pure stock pickers’ universe and hence, exposure to small-caps enhances multi-managers’ diversification

Research and Experience

Advantages of using a specialist small-cap manager

  • Co-invest with companies, where the Fund can be a key provider of capital for Australian small business, often >5% alongside founding shareholders
  • Often the primary source of capital and are fully aligned with company management
  • Identify small, fast-growing businesses to ‘go on a journey’ with, helping them achieve their goals
  • Permits high level of active ownership and engagement with company management

Risk Management

  • Awareness of risk / return and strong relationships with company management enables identification of companies that have the potential to be successful over the long term

Responsible Investment

Responsible Investment

Our corporate RI strategy is based upon three strategic pillars of quality, stewardship and engagement.
We consider ESG risks to be factors that may place business value at risk. Companies at risk are identified using both external providers and our own internally driven research, which is based on a systematic and extensive company meeting program. Company meetings provide us with the opportunity to engage on ESG issues and gain greater insight into potential risks and opportunities. It also provides us with the opportunity to positively influence companies towards ESG best practice where appropriate.

Learn more about Emerging Companies approach to Responsible Investment

Performance and Documents

(This is not classified as a green or ESG fund in Hong Kong)

Source: First Sentier Investors 2020

Performance returns are calculated net of management fees and transaction costs. Performance returns for periods greater than one year are annualised. Past performance is not a reliable indicator of future performance.

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Investment Team

Tim Canham
Senior Portfolio Manager
Tim Canham
Senior Portfolio Manager
Wik Farwerck
Senior Portfolio Manager
Wik Farwerck
Senior Portfolio Manager