Australian Equities

Yarra Smaller Companies Strategy

The Yarra Australian Smaller Companies Equity strategy offers access to smallcap Australian companies, with a strong record of outperformance.

An established and successful Australian smallcap strategy

The Yarra Australian Smaller Companies Strategy offers investors exposure to small sized companies listed in the Australian Securities Exchange.

Using Yarra’s differentiated investment approach, the Fund seeks to unlock potential in the smallcap universe. The Strategy typically contains 30-60 securities, and we aim to outperform the S&P/ASX Small Ordinaries Accumulation Index over rolling five-year periods.

Reasons to consider investing

A dedicated smallcap team with a proven track record

Our team comprises specialists who focus exclusively on small and microcap companies, led by Katie Hudson (Portfolio Manager, Smallcaps) and supported by Michael Steele (Deputy Portfolio Manager, Smallcaps). They are supported by a broader Australian equities team comprising 12 members with an average 12 years’ investment experience. We have an investment team of the highest quality, bringing diversity of experience in bringing varied perspectives and stock ideas to portfolio construction discussions.

A large and inefficient opportunity set

Yarra’s philosophy is based on the belief that markets are not perfectly efficient and that prices of certain Australian listed equities can often be significantly over or undervalued. In a $A246bn¹ market, identifying these inefficiencies can be a source of large outperformance.

Independent thinking and differentiated insights

Our process of undertaking rigorous proprietary research is an invaluable advantage when focusing on the smaller end of the listed market, where we believe there is more hidden value to be captured. We undertake rigorous proprietary research to identify and test our differentiated insights, with analysis of Environmental, Social & Governance (ESG) risks an integral part of this process.

Portfolio construction which balances risk and reward

Balance across investment styles and stock selection helps to deliver more consistent performance across market cycles. Our analysis avoids growth or value bias, uses multiple channels and focuses on opportunities across different time ranges.

Open to new investment for all Australian investors

Institutional investors wanting further information on the Yarra Australian Smaller Companies Strategy should contact a member of the Firm’s Client Team. Contact information can be found here.

All other Australian investors can access the Yarra Australian Smaller Companies Strategy via the UBS Australian Small Companies Fund, a fund which has been managed by Yarra Capital Management since Dec 2018.

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Objective

To achieve medium‑to‑long term capital growth through exposure to small and medium sized Australian companies that are considered to possess strong capital growth potential. In doing so, the aim is to outperform the benchmark over rolling five-year periods.

Benchmark

S&P/ASX Small Ordinaries Accumulation Index

Typical number of stocks

30 – 60

Recommended investment timeframe

Long term 5-7+ years

Inception date

May 2016

Gross returns as at 31 January 2020

1 Mth
%
3 Mth
%
1 Yr
%
2 Yr
% p.a.
3 Yr
% p.a.
Since
inception
% p.a.
Yarra Smaller Companies Strategy* 2.13 2.37 29.32 20.98 21.94 17.18
S&P/ASX Small Ordinaries Accumulation Index 3.38 4.69 18.84 7.34 12.12 11.31
Excess Returns* -1.24 -2.31 10.48 13.65 9.82 5.87

* The returns shown are gross of all fees, meaning they do not reflect the deduction of any investment management fees which would reduce returns and assume reinvestment of distribution. Excess Return is the difference between the Portfolio’s gross return and its benchmark. Investment in the Portfolio is not available on a fee free basis and this should be factored into any analysis of past performance. Past performance is not a reliable indicator of future performance . 

How to invest?

Institutional investors wanting further information on the Yarra Australian Smaller Companies Strategy should contact a member of the Firm’s Client Team. Contact information can be found here.

All other Australian investors can access the Yarra Australian Smaller Companies Strategy via the UBS Australian Small Companies Fund, a fund which has been managed by Yarra Capital Management since Dec 2018. Please click here for further information on how to invest.

¹ Total market capitalisation of constituents within the S&P/ASX Small Ordinaries Index, 31 Dec 2019.