Spheria Australian Smaller Companies Fund
Existing Unitholders: We have transitioned unit registry services of the Spheria Australian Smaller Companies Fund. This may impact you – click here to find out more.
About the Fund
The Fund is an actively managed portfolio, investing in a broad range of small companies predominantly from Australia with the objective of specifically seeking out securities where the present value of future free cash flows can be reasonably ascertained and the security is trading at discount to its intrinsic value, subject to certain risk criteria.
The objective of the Fund is to outperform the S&P/ASX Small Ordinaries Accumulation Index over the medium to long term by investing predominantly in listed companies which are outside the top 100 ASX listed companies by market capitalisation and companies listed on the New Zealand Stock Exchange with an equivalent market capitalisation.
Investing in the Fund offers investors a range of benefits:
- Focus on cash generative business models – Spheria is a fundamental based investment manager with a bottom-up focus.
- Team experience – the investment team of Spheria has over 50 years experience investing in equities.
- Potential for higher growth – smaller companies generally have more potential for growth relative to large companies as they may be in the early stages of development or are providing new services or technologies.
- Open-minded, holistic thinking – Spheria assesses businesses with a broader view, noting that global parallels are important in a technologically evolving environment.
- Risk aware – risk is central to Spheria’s thinking around portfolio construction and investment not merely an after-thought.
Note all investments carry risk:
- Market risk – The Fund may be materially affected by market, economic, social and/or political conditions globally and in the jurisdictions and sectors in which it invests or operates. This includes conditions affecting interest rates, the availability of credit, currency exchange and trade barriers.
- Regulatory risk – Changes to regulations can affect the Fund’s operation, disclosure, or investment activities.
- Income risk – These may fluctuate significantly in their value with the ups and downs in the economic cycle and the fortunes of the issuing firm.
The Spheria Australian Smaller Companies Fund received a ‘Highly Recommended’ rating from Zenith Investment Partners (February 2021)1 and a ‘Recommended’ rating from Lonsec Research (August 2020)2.
|BENCHMARK:||S&P/ASX Small Ordinaries Accumulation Index|
|HOLDS BETWEEN:||Generally 20-65 stocks in Australian & New Zealand listed securities|
|SUGGESTED INVESTMENT TIMEFRAME:||3 to 5 years or more|
|DISTRIBUTION FREQUENCY:||Half yearly|
|PERFORMANCE FEE:||20% of outperformance above the benchmark (after base mgt fee)|
|RESPONSIBLE ENTITY:||Pinnacle Fund Services Limited|
|BT Panorama||BT Wrap|
|IOOF Portfolio Service||IOOF Pursuit|
|IOOF Wrap||Macquarie Wrap|
|MLC Navigator||MLC Wrap|
|MMC Wealth Administration (formerly Aegis)||Netwealth|