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Pendal MicroCap Opportunities Fund

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/100548-2023-04-01-02:37.pdf
FUND MANAGER Pendal Institutional
ASX Code
APIR RFA0061AU
ASSET CLASS SMALL CAP EQUITIES
INVESTMENT STYLE The Fund is a portfolio of micro cap stocks listed on the ASX and NZX.
INVESTMENT PROFILE The Fund aims to provide a return (before fees, costs and taxes) that exceeds the Benchmark over the medium to long term.
CURRENCY MANAGEMENT Unhedged
INCEPTION DATE 01-03-2006
BENCHMARK S&P/ASX Small Ordinaries (TR) Index
FUND SIZE S&P/ASX Small Ordinaries (TR) Index
DISTRIBUTION FREQUENCY Yearly
NO. OF HOLDINGS 40-60
FEES 1.20% p.a.
STRUCTURE

Benefits

Benefits

Benefits of investing in the Pendal MicroCap Opportunities Fund

Investing in the Fund provides investors with:

  • access to a professionally managed portfolio of micro cap shares
  • potential for strong long-term capital growth and some income
  • opportunity for diversification within their Australian equities portfolio.
RISK LEVEL
INVESTOR SUITABILITY

Risks

Title
Detail

Key Features

About the Fund

The Pendal MicroCap Opportunities Fund is a portfolio of stocks in the rapidly expanding and highly diversified micro cap sector. The universe includes more than 1,100 companies listed on the ASX and NZX with a market capitalisation of between $5 million and $150 million.

Investors should be aware that due to the characteristics of micro cap companies there is some additional risk involved in investing in the Fund compared to a conventional Australian equities fund.

Investment Return Objective

The Fund aims to provide a return (before fees, costs and taxes) that exceeds the S&P/ASX Small Ordinaries Accumulation Index over the medium to long term. The suggested investment timeframe is five years or more.

Investment Philosophy

At the cornerstone of Pendal's investment philosophy is the view that markets are not always rational and the inefficient market pricing of securities creates investment opportunities. This is particularly the case in micro caps where the sector is under-researched and sentiment will often drive periods of under- valuation and over-valuation. This reflects our belief that in the absence of structural change security prices will revert to their intrinsic value through the course of an investment cycle.

As with Pendal's other Australian equity portfolios, the Fund will be managed in a way that is style indifferent, it will be invested in both value' and growth' companies, without a predetermined value' or growth' bias.

Mandate

How we invest your money

The Fund is actively managed and invests primarily in a portfolio of 40-60 Australian companies with market capitalisation or free float of generally less than $150 million at initial investment that we believe are trading below their assessed valuation. The Fund may also invest in equivalent companies listed on the New Zealand Stock Exchange.

Asset Classes and Asset Allocation Ranges

  • Australian shares: 75%-100%
  • Cash: 0%-25%