Australian Equities

Yarra Australian 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 (Co-Portfolio Manager, Smallcaps). They are supported by a broader Australian equities team comprising 13 members with an average 13 years’ investment experience. We have an investment team of the highest quality; our diversity of experience brings varied perspectives to stock and 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 $A333bn¹ 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.

Simply Swipe to obtain further table informatin

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 three-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 July 2021

1 Mth
%
3 Mth
%
1 Yr
%
2 Yrs
% p.a.
3 Yrs
% p.a.
5 Yrs
% p.a.
10 Yrs
% p.a.
Since
inception
% p.a.
Yarra Australian Smaller Companies Strategy* 0.88 4.15 40.18 18.91 21.61 16.22 NA 18.13
S&P/ASX Small Ordinaries Accumulation Index 0.68 4.06 32.30 10.02 9.21 9.57 NA 11.38
Excess Return* 0.19 0.09 7.89 8.89 12.40 6.65 NA 6.65

* 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, 30 June 2021.

 

General Advice Disclaimer

Either Yarra Funds Management Limited (ABN 63 005 885 567, AFSL 230 251) (‘YFML’) or Yarra Investment Management Limited (ABN 34 002 542 038, AFSL 229664) (‘YIML’) is the issuer and responsible entity of the range of registered managed investment schemes described on this website (‘Funds’). YFML and YIML are not licensed to provide personal financial product advice to retail clients. The information provided on this website contains general financial product advice only. The advice has been prepared without taking into account your personal objectives, financial situation or particular needs. Therefore, before acting on any advice, you should consider the appropriateness of the advice in light of your own or your client’s objectives, financial situation or needs. Prior to investing in any of the Funds, you should obtain and consider the product disclosure statement (‘PDS’) for the relevant Fund by contacting our Investor Services team on 1800 034 494 or from our website at www.yarracm.com/pdsupdates. The information set out in this website has been prepared in good faith and while YFML, YIML and its related bodies corporate (together, the “Yarra Capital Management Group”) reasonably believe the information and opinions to be current, accurate, or reasonably held at the time of publication, to the maximum extent permitted by law, the Yarra Capital Management Group: (a) makes no warranty as to the content’s accuracy or reliability; and (b) accepts no liability for any direct or indirect loss or damage arising from any errors, omissions, or information that is not up to date.

Before using any of the financial services offered by Yarra Funds Management Limited, you should read our Financial Services Guide (FSG). This has been prepared to assist you in deciding to use any of the financial services offered by us. We are required to provide you with an FSG if we provide certain financial services to you as a retail client.