Ausbil Global SmallCap aims to outperform the MSCI World Small Cap Net Total Return (TR) Index in AUD over the long term by primarily investing in listed global small cap companies using Ausbil’s global small cap investment philosophy and process. Ausbil’s active global small cap investment process aims to exploit the inefficiencies within the asset class by investing in quality companies with unrecognised growth potential at attractive valuations. The investment strategy uses both qualitative and quantitative analysis and tools alongside a disciplined risk management process, with the aim of producing consistent and risk controlled outperformance.
Fund performance for the quarter ending September 2023 was -1.93% (net of fees) versus the benchmark return of -1.39%, as measured by the MSCI World Small Cap Net Total Return Index.
The MSCI World Small Cap index fell 1.39% in AUD terms over the quarter. Finland, Sweden and Denmark were the worst performing countries, while Portugal, Japan and Norway performed well. The UK outperformed the benchmark, while the US underperformed. Overall, global equities were under pressure as rates continued to head higher with the US 10-year yield approaching 4.6%, affecting both large-cap and small-cap equities.
The Industrials and Financials sectors were the key outperformers, while the Health Care, Utilities and Information Technologies sectors underperformed as US bond yields continue to rise.
Notable positive contributors over the period were Selective Insurance in the US and Kempower in Finland. By contrast, BE Semiconductors in The Netherlands contributed negatively to performance.
What is Ausbil Global SmallCap Ausbil Global SmallCap is an Managed Funds investment product that is benchmarked against Developed -World Index and sits inside the Foreign Equity - World Mid/Small Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Ausbil Global SmallCap has Assets Under Management of 30.55 M with a management fee of 1.2%, a performance fee of 20.50% and a buy/sell spread fee of 0.25%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the Ausbil Global SmallCap has returned 8.28% in the last month. The previous three years have returned 3.19% annualised and 17.35% each year since inception, which is when the Ausbil Global SmallCap first started.
How is risk measured in this investment product?
There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Ausbil Global SmallCap first started, the Sharpe ratio is 0.32 with an annualised volatility of 17.35%. The maximum drawdown of the investment product in the last 12 months is -10.2% and -32.65% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
What is the relative performance of the investment product?
Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Ausbil Global SmallCap has a 12-month excess return when compared to the Foreign Equity - World Mid/Small Index of 4.06% and 0.72% since inception.
Does the investment product produce Alpha over its Peers?
Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Ausbil Global SmallCap has produced Alpha over the Foreign Equity - World Mid/Small Index of 0.23% in the last 12 months and 0.05% since inception.
What are similar investment products?
For a full list of investment products in the Foreign Equity - World Mid/Small Index category, you can click here for the Peer Investment Report.
What level of diversification will Ausbil Global SmallCap provide?
Ausbil Global SmallCap has a correlation coefficient of 0.93 and a beta of 1.13 when compared to the Foreign Equity - World Mid/Small Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
How do I compare the investment product with its peers?
For a full quantitative report on Ausbil Global SmallCap and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Ausbil Global SmallCap with the Developed -World Index?
For a full quantitative report on Ausbil Global SmallCap compared to the Developed -World Index, you can click here.
Can I sort and compare the Ausbil Global SmallCap to do my own analysis?
To sort and compare the Ausbil Global SmallCap financial metrics, please refer to the table above.
Has the Ausbil Global SmallCap been independently verified by SMSF Mate?
This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.
How can I invest in Ausbil Global SmallCap?
If you or your self managed super fund would like to invest in the Ausbil Global SmallCap please contact Grosvenor Place, Level 27, 225 George Street,Sydney NSW 2000 via phone +61 02 9259 0200 or via email contactus@ausbil.com.au.
How do I get in contact with the Ausbil Global SmallCap?
If you would like to get in contact with the Ausbil Global SmallCap manager, please call +61 02 9259 0200.
Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the Ausbil Global SmallCap. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - June 30, 2023 Fund performance for the quarter ending June 2023 was +7.46% (net of fees) versus the benchmark return of +3.85%, as measured by the MSCI World Small Cap Net Total Return Index.
MSCI World Small caps rose 3.85% in AUD terms over the quarter. The Information Technologies, Health Care and Industrials sectors were the key outperformers while Communication Services, Materials and Real Estate sectors underperformed. The US and parts of Europe outperformed the wider developed markets over the period.
Notable positive contributors over the period were Vertiv, Be Semiconductor Industries, Topbuild and Atkore while European Industrials Valmet and Andritz contributed negatively to performance.
Pleasingly Atkore was up 33.5% in June, reversing some weaker performance earlier in the past quarter. Atkore continues to be a well-run US based industrial focused on non-residential Capital Expenditure and the electrification of the US.
Performance Commentary - March 31, 2023 Fund performance for the quarter ending March 2023 was +4.35% (net of fees) versus the benchmark return of +5.60%, as measured by the MSCI World Small Cap Net Total Return Index.
MSCI World Small caps index rose 5.60% in AUD terms over the quarter, with returns being largely driven by the Information Technology, Consumer Discretionary, Industrials and the Materials sectors, all delivering strong positive performance. The Financial and Real Estate sectors underperformed the market with negative absolute returns.
The Fund underperformed the index by 1.25% over the quarter. On a positive absolute basis, our Industrials holdings continued to deliver strong increases in near-term earnings expectations. Our large underweight in the Financials sector benefited performance, though we have had major concerns over the effect of the yield curve on Regional US Banking and US Commercial Real Estate. Our large underweight in the Real Estate sector also helped returns. On the negative side, our Materials investments underperformed the index and were a drag on performance.
Performance Commentary - December 31, 2022 Fund performance for the quarter ending December 2022 was +5.33% (net of fees) versus the benchmark return of +5.01%, as measured by the MSCI World Small Cap Net Total Return Index. MSCI World Small caps rose 5.01% in AUD terms over the quarter. The Materials and Industrials sectors led the market. The Energy, Consumer Discretionary, Consumer Staples and Financials sectors also outperformed. However, the Health Care, Communication Services, Real Estate, Information Technology and Utilities sectors underperformed the market. The UK and parts of Europe outperformed the wider developed markets over the period.
The Fund outperformed the index by 0.32% over the quarter driven by strong stock selection and a number of strong results across the portfolio holdings. The Fund’s investments in structural growth businesses in the Communication Services sector were the main drivers of outperformance. Our stock selection in the Consumer Staples, Financials, Health Care, Consumer Discretionary, Information Technology and Materials sectors were also positive contributors to performance. On the negative side, our positions in the Industrials, Real Estate and Utilities sectors lagged the index this quarter.
Performance Commentary - September 30, 2022 Fund performance for the quarter ending September 2022 was -2.40% (net of fees) versus the benchmark return of +1.31%, as measured by the MSCI World Small Cap Net Total Return Index. MSCI World Small caps rose 1.31% in AUD terms over the quarter. The Energy and Health Care sectors led the market. The Financials, Industrials and Information Technology sectors also outperformed the market. The Communication Services, Real Estate, Consumer Staples, Utilities, Materials and Consumer Discretionary sectors underperformed the market. The US outperformed the wider developed markets over the month. The Fund underperformed the index by 3.71% over the quarter. Our Consumer Discretionary and Information Technology holdings were the major negatives. Our investments in the Financials, Energy and Consumer Staples sectors lagged the index over the month. Our positions in the Communication Services, Industrials, Materials, Real Estate and Utilities sectors were positive for performance.
Performance Commentary - June 30, 2022 Fund performance for the quarter ending June 2022 was -11.61% (net of fees) versus the benchmark return of -9.56%, as measured by the MSCI World Small Cap Net Total Return Index.
MSCI World Small caps fell 9.56% in AUD terms over the quarter. The Materials and Communication Services sectors fell the most. The Consumer Discretionary, Real Estate, Industrials and Information Technology sectors were also very weak over the month. The Consumer Staples sector returned positive performance as the market sought safety of earnings. The Energy sector had a strong quarter but weakened considerably in June.
The Fund underperformed the index by 2.05% over the Quarter. Our Healthcare and Information Technology holdings were the major negative, as despite their defensive nice earnings profiles, they were sold down with the broader market. Our relative avoidance of cyclical businesses in the Materials and Consumer Discretionary sectors was positive for performance.
Performance Commentary - March 31, 2022 Fund performance for the quarter ending March 2022 was -21.49% (net of fees) versus the benchmark return of -9.48%, as measured by the MSCI World Small Cap Net Total Return Index. MSCI World Small caps fell 9.48% in AUD terms over the quarter, as rising inflation concerns, higher bond yields and Russia’s ongoing invasion weighed on equities. Across the quarter, the Energy sector led the market up 31%. The Utilities, Materials, Financials, Real estate and Consumer Staples sectors also outperformed the market. The Consumer Discretionary, Health Care, Information Technology, Industrials and Consumer Services sectors lagged the market.
The US led the overall market. By contrast, the UK, parts of the European Union and the Japanese markets delivered poor returns in AUD terms over the month. The fund underperformed the benchmark by 12.02% over the quarter. Both asset allocation and stock selection were negative contributors for the month, with holdings in the Health Care and Consumer Discretionary sectors particularly disappointing. The Fund’s performance suffered relative to the benchmark owing to the relative bias towards high quality companies and companies with positive earnings revisions, with the market rewarding the opposite characteristics over the period.
Performance Commentary - June 30, 2021 Fund performance for the quarter ending June 2021 was +6.55% (net of fees) versus the benchmark return of +6.50%, as measured by the MSCI World Small Cap Net Total Return Index. MSCI World Small Caps rose +6.50% in AUD terms over the quarter. Equity markets continued to see record inflows, with annualised inflows in H1 2021 of US$1.2 trillion, exceeding the cumulative inflows of the past 20 years. Earnings expectations were broadly more positive than investors were expecting. Over the quarter, the Energy sector led the market. The Communication Services, Real Estate and Information Technology sectors were also strong. The Consumer Staples and Financials sectors lagged the market. Parts of the European Union led the overall market. The US was also ahead of its peers. The UK and Japanese markets underperformed in AUD terms over the quarter.
The Fund outperformed the index by +0.05% over the quarter driven by strong stock selection. The Fund’s investments in the Industrials and Health care sectors were the main drivers of outperformance. Our stock selections in the Consumer Staples and Financials sectors were also positive contributors to performance. On the negative side, the Fund’s holdings in the Communication Services and Consumer Discretionary sectors gave back some strong recent performance over the quarter. Our position in the Information Technology sector was also a detractor from performance.
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