UBS Australian Small Companies Fund (UBS0004AU) Report & Performance

What is the UBS Australian Small Companies Fund fund?

UBS Australian Small Companies Fund’s investment objective is to outperform (after management costs) the S&P/ASX Small Ordinaries Accumulation Index when measured over rolling five year periods. Since inception and through various market cycles the Fund has been consistently managed using a fundamental bottom up core investment style.

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For UBS Australian Small Companies Fund

UBS Australian Small Companies Fund Fund Commentary September 30, 2023

After fees and expenses, the Portfolio declined by 3.76% during the month, outperforming its benchmark by 28 bps.

The largest contributors were Leo Lithium, Star Entertainment and Auckland Airport. Our underweight to Leo Lithium and Star Entertainment was a contributor to overperformance. Lithium company LLL underperformed during the month and went into a trading halt following correspondence from the Malian Junta government over a new mining code. Casino operator SGR underperformed following its announcement of a $750m capital raising at a 20% discount to de-lever the balance sheet following a $2.8b impairment, restrictions on operations and ~$600m in provision for regulatory compliance (including fines). Auckland Airport outperformed during the month despite no major company news.

The largest negative contributors were Paladin Energy, Pro Medicus and Healius. Our underweight to Paladin Energy was a source of underperformance as the uranium miner benefitted from a rising uranium price. Similarly, our underweight to Pro Medicus was another source of underperformance as the health imaging company outperformed during the month following an announcement of a 10-year $140m contract with Baylor Scott & White Heath. Healius continued to weaken following concerns raised by the ACCC over its potential merger with Australian Clinical Labs (ACL).

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Product Snapshot

  • Product Overview
  • Performance Review
  • Peer Comparison
  • Product Details

Product Overview

Fund Name APIR Code
? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.
Structure
?
Asset Class
? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.
Asset Category
? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.
Peer Benchmark Name
? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.
Broad Market Index
? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.
FUM
? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.
Management Fee
? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.
Performance Fee
? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.
Spread
? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
UBS Australian Small Companies FundUBS0004AUManaged FundsDomestic EquityAustralian Small CapDomestic Equity - Small Cap IndexASX Index Small Ordinaries Index99.91 M0.85%20.00%0.45%

Performance Review

Fund Name Last Month
? Returns after fees in the most recent (last) month).
3 Months Return
? Returns after fees in the most recent 3 months.
1 Year Return
? Trailing 12 month returns.
3 Years Average Return
? Average Annual returns from the last 3 years.
Since Inc. Average Return
? Average (annualised) returns since inception
1 Year Std. Dev. (Annual)
? The standard deviation (or annual volatility) of the last 12 months.
3 Years Std. Dev. (Annual)
? The average standard deviation (or annual volatility) from the last 3 years.
Since Inc. Std. Dev. (Annual)
? The average standard deviation (or annual volatility) since the fund inception.
1 Year Max Drawdown
? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
3 Year Max Drawdown
? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Since Inc. Max Drawdown
? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
UBS Australian Small Companies Fund5.9%5.23%13.53%0.65%11.47%14.54%16.81%16.99%-7%-23.4%-43.58%

Peer Comparison

Fund Name Peer Index Name
? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.
12 Months Excess Return
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
Excess Return Annualised Since Inception
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
12 Months Alpha
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
Alpha Annualised Since Inception
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
12 Months Beta
? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
Beta Annualised Since Inception
? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
12 Months Tracking Error
? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
Tracking Error Since Inception
? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
12 Months Correlation
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Correlation Since Inception
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
UBS Australian Small Companies FundDomestic Equity - Small Cap Index-5.4%1.63%NA%NA%NA%1.244.54%5.35%0.970.95

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
UBS Australian Small Companies FundYes-https://www.ubs.com/au/en/asset-management.html-

Product Due Diligence

What is UBS Australian Small Companies Fund

UBS Australian Small Companies Fund is an Managed Funds investment product that is benchmarked against ASX Index Small Ordinaries Index and sits inside the Domestic Equity - Small Cap 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 UBS Australian Small Companies Fund has Assets Under Management of 99.91 M with a management fee of 0.85%, a performance fee of 20.00% and a buy/sell spread fee of 0.45%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the UBS Australian Small Companies Fund has returned 5.9% in the last month. The previous three years have returned 0.65% annualised and 16.99% each year since inception, which is when the UBS Australian Small Companies Fund 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 UBS Australian Small Companies Fund first started, the Sharpe ratio is NA with an annualised volatility of 16.99%. The maximum drawdown of the investment product in the last 12 months is -7% and -43.58% 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 UBS Australian Small Companies Fund has a 12-month excess return when compared to the Domestic Equity - Small Cap Index of -5.4% and 1.63% 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. UBS Australian Small Companies Fund has produced Alpha over the Domestic Equity - Small Cap Index of NA% in the last 12 months and NA% since inception.

What are similar investment products?

For a full list of investment products in the Domestic Equity - Small Cap Index category, you can click here for the Peer Investment Report.

What level of diversification will UBS Australian Small Companies Fund provide?

UBS Australian Small Companies Fund has a correlation coefficient of 0.95 and a beta of 1.24 when compared to the Domestic Equity - Small Cap 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 UBS Australian Small Companies Fund and its peer investments, you can click here for the Peer Investment Report.

How do I compare the UBS Australian Small Companies Fund with the ASX Index Small Ordinaries Index?

For a full quantitative report on UBS Australian Small Companies Fund compared to the ASX Index Small Ordinaries Index, you can click here.

Can I sort and compare the UBS Australian Small Companies Fund to do my own analysis?

To sort and compare the UBS Australian Small Companies Fund financial metrics, please refer to the table above.

Has the UBS Australian Small Companies Fund 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 UBS Australian Small Companies Fund?

If you or your self managed super fund would like to invest in the UBS Australian Small Companies Fund please contact via phone or via email .

How do I get in contact with the UBS Australian Small Companies Fund?

If you would like to get in contact with the UBS Australian Small Companies Fund manager, please call .

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the UBS Australian Small Companies Fund. All data and commentary for this fund is provided free of charge for our readers general information.

Historical Performance Commentary

Performance Commentary - August 31, 2023

After fees and expenses, the Portfolio decreased by 0.81% during the month, outperforming its benchmark by 50 bps.

The largest positive contributors were Megaport, G.U.D Holdings and Chalice Mining. The software technology company, MP1 was the top alpha contributor after reporting solid FY23 earnings from stronger-thanexpected pricing and cost reductions (EBITDA up by 25% and annual recurring revenue up by 39%). Similarly, the automotive parts company, GUD also outperformed as the market gained comfort around its margin sustainability and volume recovery. Our underweight position in Chalice Mining contributed positively after the company underperformed following the release of its scoping study for the Gonneville Nickel-Copper-PGE project.

The largest negative contributors were Judo, Imdex and Pinnacle Investments. Small business lender, Judo underperformed on concerns over margin headwinds following its FY23 results. Imdex also underperformed on the back of its results release (EBITDA and NPAT were down by 1.4% and 21.7% respectively). On a similar note, the fund management firm, Pinnacle Investments detracted during the month following its weak FY23 results.

Performance Commentary - June 30, 2023

After fees and expenses, the Portfolio increased by 0.90% during the month, outperforming its benchmark by 87 bps.

The largest positive contributors were Collins Food, AUB Group and Pinnacle Investment Management. Restaurant operator Collins Food outperformed during the period after providing a stronger-than-expected result, in particular in Europe, and outlook commentary that indicated an improving outlook. Our positive view toward its Australian and European KFC businesses is supported by significant new store growth potential, defensive existing store sales growth and margin expansion from depressed levels as cost headwinds moderate. AUB continued to outperform due to upgrades to guidance, positive premium growth trends, and solid execution on the Tysers acquisition. The company also raised $150m during the period to retain its Tysers UK Retail business (which was to be sold) and increase capacity for M&A. We retain our positive view, with AUB remaining a key overweight. Pinnacle Investment Management outperformed during the period, in part supported by stronger than expected inflows of +$1.9bn during the first three months of 2023. Going forward, we believe revenue growth will accelerate, with material longer term growth potential as market conditions normalise from depressed levels, inflows re-accelerate across its diverse range of products and via international distribution, performance fees increase from near zero and new products mature.

The largest negative contributors were Gold Road Resources, TPG Telecom and Flight Centre. Our overweight position in gold producer Gold Roads Resources underperformed as gold prices declined 3% to close at US$1,908/oz at month-end. Additionally, the company downgraded full year production guidance due to flooding and mechanical issues at Gruyere mine during June. We continue to favour Gold Roads, with its Gruyere gold mine project (50% owned) a high-quality and lowcost operation, supported by a JV partner with deep operating expertise, while its 19.9% stake in fellow smallcap gold miner De Grey Mining offering significant strategic value and access to the very large Mallina gold mine development opportunity. TPG Telecom underperformed during the period, after the telecommunications company saw its proposed network sharing agreement (MOCN) rejected by the Australian Competition Tribunal. The decision leaves TPG without a partner for regional network access, resulting in network coverage that remains behind that of peers Telstra and Optus. Flight Centre underperformed during the period, partly reducing the level of outperformance over the last 12 months. While there were some expectations of an earnings upgrade at its June investor day (which did not materialize), it should be noted that earnings guidance was already upgraded at the start of May and, more importantly, the outlook remains positive as travel demand continues to increase.

Performance Commentary - May 31, 2023

After fees and expenses, the Portfolio declined by 3.03% during the month, outperforming its benchmark by 23 bps.

The largest contributors were Kelsian Group (KLS), Pinnacle Investments (PNI), and Megaport (MP1). Kelsian outperformed during the period despite no material company specific news. We have a positive outlook for its three divisions spanning Australian buses, US buses and Australian tourism. Pinnacle Investments’ outperformance in May was partly encouraged by stronger than expected inflows during 1Q23 (+$1.9bn). Going forward, revenue growth, inflows, performance fees and international distribution are expected to reaccelerate. Megaport also outperformed following the release of stronger than expected March quarterly results, with forward guidance for FY24 materially ahead of consensus expectations at both revenue and margin level, leading to material earnings upgrades and an improved balance sheet position.

The largest negative contributors were oOh!Media (OML), 29Metals (29M), and Nanosonics (NAN). OML was an underperformer during May reflecting short-term cyclical headwinds to revenue and higher than anticipated costs on contract renewals. 29Metals was a detractor to the portfolio as copper prices declined by 5% to close at US$3.68/lb at month-end. Disinfection medical device company Nanosonics underperformed during the period following significant outperformance in prior months, despite no specific company news.

Performance Commentary - April 30, 2023

After fees and expenses, the Portfolio increased by 3.53% during the month, outperforming its benchmark by 75 bps. The largest positive contributors were Megaport (MP1), Nanosonics (NAN) and Gold Road Resources (GOR). Software and services company Megaport outperformed during the period after announcing a stronger than expected March quarterly result and upgrade to full year guidance.

The overweight to infection prevention medical device company Nanosonics was a positive contributor during the period. While there was no specific news, investors continue to build conviction in the growth opportunity from their new product, Coris, which is expected to be delivered into market in late 2023. Our position in gold producer Gold Road Resources was a positive contributor, supported by gold prices rising 8.8% to US$1,988/oz at month end.

The largest negative contributors were Telix pharmaceuticals (TLX) (not held), Imdex (IMD) and EBOS (EBO). Radiopharmaceuticals company Telix outperformed after announcing a strong March quarter revenue result. Australian mining equipment and technology company Imdex underperformed on no material company-specific news. We continue to hold a positive view towards IMD given the continued long term market growth opportunity from critical metals demand growth (copper, nickel, lithium) and new resources becoming increasingly difficult to find.

The wholesaler and distributor of medical and pharmaceutical products, EBOS, underperformed despite no material news. We maintain a positive view towards the company, reflecting defensive earnings growth across both its health care and animal care divisions. Both divisions are in growth markets and are increasing market share and margins, leading to attractive earnings growth.

Performance Commentary - March 31, 2023

After fees and expenses, the Portfolio increased by 0.58% during the month, outperforming its benchmark by 130 bps. The largest contributors were Nanosonics, Gold Road Resources, and Liontown Resources. Nanosonics outperformed after upgrading the FY23 outlook. FY23 revenue growth guidance was increased to 35% (y/y) and margin guidance was increased given higher gross margins.

Gold miner Gold Road outperformed reflecting the rally in the gold price (+9%) across the month on macro uncertainty and an expected easing of interest rate rises globally. Lithium developer Liontown outperformed despite falling lithium prices, with the company subject to a takeover offer from US listed lithium producer Albermarle.

The largest negative contributors were Megaport, Pinnacle Investments and Neuren Pharmaceuticals. Megaport underperformed after announcing a weaker than expected December quarterly result across key volume metrics and management changes. Pinnacle underperformed during the period after reporting a 1H23 result below expectations, largely due to lower-than-expected revenues across both performance fees and management fees. Neuren surged to a $1bn valuation after receiving US healthcare regulatory approval.

Performance Commentary - February 28, 2023

After fees and expenses, the Portfolio declined by 0.22% during the month, outperforming its benchmark by 348 bps.

The largest positive contributors were AUB Group, Infomedia and Flight Centre. AUB outperformed in the month due to a strong 1H22 update which included a guidance upgrade. The result confirmed substantial premium growth trends in the industry, which assisted organic growth. The company’s recent significant acquisition, Tysers, had a solid 1H22 performance which beat previous December guidance and the integration into AUB continues to perform well. Infomedia outperformed during the period after delivering a 1H23 result in-line with expectations, but more importantly an improving outlook. The improved outlook was supported by acceleration in the sales pipeline and improving cost outlook, with cost growth to be at least 3% below revenue growth. Flight Centre was a positive contributor during the period after a stronger than expected 1H23 result above prior guidance, positive outlook commentary and the attractive acquisition of premium leisure travel business, Scott Dunn.

The largest negative contributors were Pinnacle Investments, Regis Resources and Baby Bunting. Pinnacle Investments underperformed during the period after reporting a 1H23 result below expectations largely reflecting lower-thanexpected revenues across both performance fees and management fees. Regis Resources was a negative contributor, following the gold price lower in February, with gold declining 5% to US$1,817/oz at month end. Baby Bunting underperformed during the period after a weak 1H23 result and the announcement that the CEO is expected to depart later this year.

Performance Commentary - January 31, 2023

After fees and expenses, the Portfolio increased by 5.50% during the month, underperforming its benchmark by 106 bps.

The largest positive contributors were Pinnacle Investments (PNI), Sims (SGM) and Sandfire Resources (SFR). Pinnacle Investments outperformed during the period despite no material company news, although higher equity markets (supporting higher funds under management) were supportive to earnings during the period. Our position in scrap and metals recycling company Sims contributed positively during the period. Scrap steel margins are improving following a period of significant moderation from historical highs and are positioned to strengthen further, in our view. Sandfire Resources was a positive contributor, with copper prices increasing ~10% over the month to close at US$4.17/lb on expectations that the re-opening of China post COVID-zero would support copper demand.

The largest negative contributors were Infomedia (IFM), Megaport (MP1) and Gold Road (GOR). Infomedia underperformed during the period despite no material company news, although this is a part reversal of outperformance during December. Megaport underperformed after a weaker than expected December quarterly result across key volume metrics such as new customer numbers. We believe these volume trends will improve going forward as execution improves, new distribution channels mature and macroeconomic headwinds moderate. Our position in Gold Road was a negative contributor during January, despite the gold price rising 3% to US$1,928/oz at month end. The company reported weak production for the December quarter, however the driver was an extended shutdown at its Gruyere mill and in our view is not symptomatic of longer-term issues.

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