This price includes the buy spread but excludes contribution fees
This price includes the sell spread
Smallco Broadcap Fund (SBF)
SBF is a concentrated Australian Equities fund that provides a broader exposure to the Australian equity market than SIF.
The target return for SBF is 5% pa above the S&P/ASX 300 Accumulation Index after fees on a rolling 3 year basis. Since inception in July 2008 SBF has comfortably exceeded this target.
Smallco manages SBF in a style neutral manner, employing a mix of both bottom up and top down analysis with a strong focus on earnings direction and risks.
Smallco aims to deliver good medium term returns in SBF through overlaying a substantial core of reasonably priced quality long term growth stocks with, when they can be found, attractive value ideas where we believe a re-rating trigger is likely within 6-12 months. The re-rating trigger is crucial as SBF does not invest in “cheap” stocks just because they appear to be “value”.
We are strong believers that earnings are the key driver of share prices and that more accurate forecasting of earnings will drive greater and more consistent outperformance.
Focus is placed on identifying stocks through fundamental analysis which are likely to exceed consensus earnings expectations or stocks which are out of favour and we are confident will at least meet earnings expectations.
SBF can invest up to 40% in companies with a market capitalisation of less than $1bn and will genuinely deviate significantly from the index when appropriate opportunities are found. Stock weightings are determined by our assessment of the quality of the stock, the likely investment outcome and risk of a sustained capital loss. This is not another concentrated fund whose top 10 holdings are drawn almost entirely from the ASX 20 or 50.
Important Notice Regarding Smallco Broadcap Fund Investment Restrictions
Smallco Investment Management Ltd (ABN 89 092 626 090, AFSL 224108) (Smallco) is the responsible entity of the Smallco Broadcap Fund ARSN 163 030 626 (SBF). SBF may invest in Australian listed companies, companies that were once listed in Australia but are now listed offshore and may hold some cash.
To take advantage of Smallco’s background and experience in smaller listed companies Smallco can invest up to 40% of SBF in companies with a market capitalisation of less than $1bn and will typically be between 25-40% invested in these companies.
Sometimes the market capitalisation of companies that we have invested in may fall below $1bn. If this happens, SBF may from time to time exceed the 40% limit. Rather than immediately selling positions to get the overall fund exposure below the 40% threshold (which could cause adverse movements in the price of the stocks), Smallco may choose to remain above the limit over a period of up to 6 months in order to effect an orderly sell down. Smallco will not add to any sub $1bn stock positions during that time.
Smallco considers this flexibility to be in the best interests of unitholders of the SBF.
If you have any queries in relation to the above, please contact Smallco on +61 2 8256 1000.
The purpose of this notice is to provide updated information pursuant to ASIC Corporations (Updated Product Disclosure Statements) Instrument 2016/1055 which is not materially adverse to investors in SBF under the product disclosure statement for SBF dated 1 July 2016 (PDS). While this change is not considered to be materially adverse to investors, it should be taken into account when making a decision to acquire, or to continue to hold, units in SBF.