Strategy Overview

Key Facts

Australian Small Companies – finding value from a diverse universe

  • Stable team with consistent philosophy and process applied for over a decade
  • Focus on quality companies with sustainable competitive advantage protects from downside risks
  • Evaluation criteria emphasise sustainability and ESG

Why invest?

opportunity

Divergence in returns provides opportunity for skilled investors to deliver high growth for clients
There is a large divergence of returns across the small companies’ universe, creating opportunity for skilled investors. By favouring companies with sustainable competitive advantages, strong financials and predictable earnings, we seek to deliver superior returns and minimise downside risks. Value is discovered through a bottom-up investment approach, with an emphasis on industry, financials, valuation and management. Our investment process has delivered consistent, absolute returns through investment cycles since the team began working together in 2008.

 

investment approach

Our investment approach is consistent and minimises downside risks
We aim to add value to clients through all market conditions. Critical to achieving this has been the development of an investment framework that ensures stocks are assessed in a consistent manner with respect to both returns and risk. It is our approach to risk management and focus on downside risk at the stock level that differentiates our investment approach. Our experience managing downside risk can help us to outperform a volatile market segment.

 

risk management

We minimise volatility through disciplined portfolio construction and awareness of risk

A commitment to risk management is one of the tenets of our investment process. The aim of portfolio construction is to align the risk/return profile of a stock and the recommendation from an analyst with an appropriate active position in our portfolios. The tiering system was developed to deliver this alignment in a risk-aware, disciplined manner.

 

Responsible Investment

Responsible Investment

Our corporate RI strategy is based upon three strategic pillars of quality, stewardship and engagement.
We consider ESG risks to be factors that may place business value at risk. Companies at risk are identified using both external providers and our own internally driven research, which is based on a systematic and extensive company meeting program. Company meetings provide us with the opportunity to engage on ESG issues and gain greater insight into potential risks and opportunities. It also provides us with the opportunity to positively influence companies towards ESG best practice where appropriate. Learn more about the Australian Small Companies team's approach to Responsible Investment.



Performance and Documents

All returns are calculated on an annualised basis using exit price to exit price with distributions reinvested, net of management costs, transaction costs. All return calculations exclude any individual taxes payable by the investor and all other fees and rebates disclosed in the relevant product disclosure statements. The 'distribution' component is the amount paid by the way of distribution, which may include net realised capital gains.

Investment Team

Our investment team have over a decade together covering the broad small stock universe

Our team collectively has more than 40 years of investment experience, with 10 of those years working together. We have a deep understanding of small caps investing and an extensive network of industry contacts. This experience is particularly important in covering the broad small stock universe that has over 200 companies (if we include stocks that are not in the index).

All three Small Companies team members have a dual portfolio manager/analyst role, with Senior Portfolio Manager Dawn Kanelleas being supported by two Portfolio Managers. In practice, all members of the team understand the key reasons for investing in every stock and are aware of stock specific catalysts for share price movement.

Dawn Kanelleas
Senior Portfolio Manager Australian Equities
Dawn Kanelleas
Senior Portfolio Manager Australian Equities
Michael Joukhador
Portfolio Manager
Michael Joukhador
Portfolio Manager
Pavlos Totsis
Portfolio Manager
Pavlos Totsis
Portfolio Manager

CONTACT US

Speak to your Key Account Manager

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