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Spheria Global Microcap Fund receives inaugural rating


Spheria Asset Management is pleased to announce the Spheria Global Microcap Fund (the Fund) has received a ‘Recommended’ rating from Zenith Investment Partners. It is the inaugural rating assigned to the fund.

Spheria Asset Management Co-Founder and Portfolio Manager, Marcus Burns, said the rating is a reflection of confidence in the application of Spheria’s proven domestic investment process, in the global microcap universe.

“Such a strong first rating from a respected independent researcher corroborates our belief that the Fund fills an unmet need for investors by giving them access to this unique asset class,” said Mr Burns.

“The global microcap space is a largely unexplored segment of the market, potentially making it one of the most significant opportunities for client wealth creation.

“We believe the best way to exploit this opportunity is through a carefully selected portfolio of global microcaps, with strong free-cash flow, low gearing and valuation upside.”

In its report, Zenith said it believes the Fund is an “attractive and unique investment option within the global equities peer group.”

Furthermore, it stated “Zenith believes the investment process implemented by Spheria is robust, with its focus on industry and financial risks likely to result in more consistent risk-adjusted return outcomes.”

The Fund, launched in March 2019, is style-neutral and typically holds 40-60 business in the portfolio with market capitalisations of between US$50 million to US$1 billion. It aims to outperform the MSCI Kokusai (World ex-Japan) Microcap Index by 3% p.a. after fees over rolling seven-year periods.

In the year to October 31, 2020, the Fund has delivered a net return of 11.8%, outperforming the benchmark by 8%.

Zenith disclaimer:

The Zenith Investment Partners (“Zenith”) Australian Financial Services License no. 226872 rating (assigned November 2020) referred to in this document is limited to “general advice” (as defined by the 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. 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. Zenith usually charges the product issuer, fund manager or a related party to conduct product
assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our product assessment’s and at