In March 2019, Spheria Asset Management launched the Spheria Global Microcap Fund, confident this largely unexplored segment of the market presented the greatest opportunity for client wealth creation. The Fund’s exceptional relative returns in a period of extreme volatility were delivered by a carefully constructed portfolio of solid businesses, with strong cash flow generation and good balance sheets.
The Spheria Global Microcap Fund received a ‘Recommended’ rating from Zenith Investment Partners (November 2020)1.
|Spheria Global Microcap Fund||value|
|Benchmark||MSCI World Micro Cap Index|
|Investment Objective||Outperform the MSCI World Micro Cap Index in AUD (Net) over the long term|
|Investing Universe||Global listed microcap equities predominantly in developed markets with a market capitalisation of US$1.0bn and below at time of purchase|
|Holdings||Generally 30-80 stocks|
|Fees||1.35% p.a. management fee & 20% performance fee of the Fund’s excess return versus its benchmark, net of the management fee.|
|Cash||Up to 20% cash|
|Expected Turnover||20% - 40%|
|Minimum Initial Investment||$25,000|
Benchmark from inception until 30th June 2021 was the MSCI Kokusai (World Ex-Japan) Microcap Index. Thereafter from 1 July 2021, the new Benchmark is the MSCI World Microcap. Index
Micro Caps vs. Large Caps: Long-Run Cumulative Performance of Stocks in Different Size Bands
Source: Credit Suisse