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.
Portfolio Manager, Gino Rossi, 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 Rossi.
“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%.