In the month ended 31 January 2025, the Fund returned 3.3% (after fees), outperforming the MSCI World Small Cap Accumulation Index (Net Return) AUD by 0.6%.
Performance
1 Spheria Global Opportunities Fund. Returns of the Fund are net of applicable fees, costs and taxes.
2 Benchmark is MSCI World Small Cap Index (net in AUD) for all periods. Please note that the Benchmark from inception to 30 June 2021 was the MSCI Kokusai Microcap Index (net in AUD) and from 1 July 2021 to 30 September 2022 was the MSCI World Microcap Index (net in AUD).
3 Inception date is 1 March 2019. Past performance is not a reliable indicator of future performance. All p.a. returns are annualised.
Please note the strategy of the Fund changed effective 1 October 2022. The Spheria Global Opportunities Fund was previously known as the Spheria Global Microcap Fund which targeted global listed microcap companies (companies with a market capitalisation of US$1 billion and below at time of purchase).
Overall Commentary
Top 5 Holdings
Regional Exposure
Source: Spheria Asset Management
Sector Exposure
Markets
Major Contributors to Performance
Over the month the largest contributors were an overweight position in Zuken Inc. (6947.TKS, +19%), owning Check Point Software Technologies Ltd. (CHKP.NAS, +16%), and owning LPL Financial Holdings Inc. (LPLA.NAS, +12%).
Major Detractors from Performance
The largest detractors from performance included an overweight position in Accelleron Industries AG (ACLN.SWX, -3%), an overweight position in Domino’s Pizza Group plc (DOM.LSE, -6%), and an overweight position in Crocs, Inc. (CROX.NAS, -7%).
Outlook & Strategy
The airwaves during the month of January were dominated by news related to Trump’s early flurry of Executive Orders, import tariffs and mounting speculation surrounding the potential for a trade war. The Department of Government Efficiency (DOGE) kicked off its pursuit of US$2trn in annual budget savings in a manner entirely consistent with everything else that Elon Musk does.
Japanese and UK equities continued to lag in January, whilst Europe staged a modest recovery and US outperformance remains the order of the day. Healthcare stocks staged a small recovery whilst real estate stocks were weak. Bond markets experienced significant volatility, with 10-year US Treasury yields initially rising toward 5% before settling back around 4.5%.
Amidst this backdrop, small caps were unable to bridge the gap with large caps during the month. We continue to believe that this represents a significant opportunity for investors going forward as the valuation discount for small caps vs large caps remains unprecedented by historical standards.
Platform Availability List
The Spheria Global Opportunities Fund is available on the below Platforms. Please check with your platform for minimum investment requirements and fees.
Asgard
BT Panorama
CFS FirstWrap
HUB24
Macquarie Wrap
Netwealth
Praemium
| Spheria Global Opportunities Fund | value |
|---|---|
| Benchmark | MSCI World Small Cap Index |
| Investment Objective | Outperform the MSCI World Small Cap Index in AUD (Net) over the long term |
| Investing Universe | Global listed small cap and microcap companies with a market capitalisation equal to or lower than the market capitalisation of the largest issuer in the MSCI Global Small Cap Index at the time of purchase |
| Holdings | Generally 30-80 stocks |
| Distributions | Annually |
| Fees | 1.10% 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% |
| Style | Long only |
| APIR | WHT6704AU |
| Minimum Initial Investment | $25,000 |
Fund Ratings
Further Information
For more information, please contact Pinnacle Investment Management Limited
on 1300 010 311 or email distribution@pinnacleinvestment.com
Disclaimer
This communication is prepared by Spheria Asset Management Pty Limited (‘Spheria’) (ABN 42 611 081 326, Corporate Authorised Representative No. 1240979) as the investment manager of the Spheria Global Microcap Fund (ARSN 627 330 287) (the ‘Fund’). Pinnacle Fund Services Limited (‘PFSL’) (ABN 29 082 494 362, AFSL 238371) is the product issuer of the Funds. PFSL is not licensed to provide financial product advice. PFSL is a wholly-owned subsidiary of the Pinnacle Investment Management Group Limited (‘Pinnacle’) (ABN 22 100 325 184). The Product Disclosure Statement (‘PDS’) and Target Market Determination (‘TMD’) of the Fund are available via the links below. Any potential investor should consider the PDS and TMD before deciding whether to acquire, or continue to hold units in, the Fund.
Link to the Product Disclosure Statement
Link to the Target Market Determination
For historic TMD’s please contact Pinnacle client service Phone 1300 010 311 or Email service@pinnacleinvestment.com
This communication is for general information only. It is not intended as a securities recommendation or statement of opinion intended to influence a person or persons in making a decision in relation to investment. It has been prepared without taking account of any person’s objectives, financial situation or needs. Any persons relying on this information should obtain professional advice before doing so. Past performance is for illustrative purposes only and is not indicative of future performance. Unless otherwise specified, all amounts are in Australian Dollars (AUD).
Whilst Spheria, PFSL and Pinnacle believe the information contained in this communication is reliable, no warranty is given as to its accuracy, reliability or completeness and persons relying on this information do so at their own risk. Subject to any liability which cannot be excluded under the relevant laws, Spheria, PFSL and Pinnacle disclaim all liability to any person relying on the information contained in this communication in respect of any loss or damage (including consequential loss or damage), however caused, which may be suffered or arise directly or indirectly in respect of such information. This disclaimer extends to any entity that may distribute this communication.
Any opinions and forecasts reflect the judgment and assumptions of Spheria and its representatives on the basis of information available as at the date of publication and may later change without notice. Any projections contained in this presentation are estimates only and may not be realised in the future. Unauthorised use, copying, distribution, replication, posting, transmitting, publication, display, or reproduction in whole or in part of the information contained in this communication is prohibited without obtaining prior written permission from Spheria. Pinnacle and its associates may have interests in financial products and may receive fees from companies referred to during this communication.
This may contain the trade names or trademarks of various third parties, and if so, any such use is solely for illustrative purposes only. All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with, endorsement by, or association of any kind between them and Spheria.
Zenith Disclaimer: The Zenith Investment Partners (‘Zenith’) (ABN 27 103 132 672, AFSL 226872) rating (assigned Spheria Global Opportunities Fund – November 2024) referred to in this piece is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual, including target markets of financial products, where applicable, and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at Fund Research Regulatory Guidelines.
Lonsec Disclaimer: The Lonsec rating (assigned as follows: Spheria Global Opportunities Fund – May 2024) presented in this document is published by Lonsec Research Pty Ltd (‘Lonsec’) (ABN 11 151 658 561, AFSL 421445). The Rating is limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial products. Past performance information is for illustrative purposes only and is not indicative of future performance. They are not a recommendation to purchase, sell or hold Affiliate Name products, and you should seek independent financial advice before investing in these products. The Ratings are subject to change without notice and Lonsec assumes no obligation to update the relevant documents following publication. Lonsec receives a fee from the Fund Manager for researching the products using comprehensive and objective criteria. For further information regarding Lonsec’s Ratings methodology, please refer to our website at: https://www.lonsec.com.au/investment-product-ratings/.
