Why Invest?
Access a diversified portfolio seeking high-quality Australian small companies hand-picked for their sustainable earnings growth and managed by Australian small companies specialist, Flinders Investment Partners, one of Warakirri’s boutique investment partners.
Performance Potential
Small companies offer a unique alpha opportunity by seeking to invest in companies with a long growth runway in an inefficient sector of the market, playing an important role in a well-balanced equities portfolio.
Active Management Matters
Historically, active management has consistently delivered outperformance in small companies as the diverse and under-researched opportunity set provides skilled managers with the potential to extract strong investment outcomes.
A Hand-Picked Portfolio of Small Companies
Flinders specialises in managing small and emerging companies with a proven track record in identifying investment ideas with growth potential.
Why Small Companies Now?
In 2022, the Australian small companies sector experienced material underperformance relative to large companies, with indiscrimante selling a result of the unwinding of QE.
In fact, this was the most extended and significant period of relative underperformance of the asset class since the GFC. We believe this dramatic rerating has resulted in an historic low entry point for those considering an allocation to the asset class.
Active Management Matters
When investing in small companies, there is a clear case for active management.
- Larger companies are expected to be the most efficient part of the market, with an average of 14 analysts covering each stock. While the smaller companies segment is the most inefficient, providing the potential for higher returns, both relative and absolute.
- The widening range of investment outcomes as investors go down the market capitalisation spectrum highlights the potential for active management to extract strong investment outcomes.
Why Flinders?
Unlike many investment managers, Flinders Investment Partners specialises solely in Australian small and emerging companies. It’s this single-minded focus that has enabled the team to be recognised as a leading small cap specialist. Watch this brief video with Andrew Mouchacca, Portfolio Manager of the Flinders Emerging Companies Fund for an overview of the team’s approach to investing.
Read video disclaimer >
Flinders Investment Partners Pty Ltd ABN 91 639 796 160 (Flinders) is a corporate authorised representative of Warakirri Asset Management Limited ABN 33 057 529 370 AFSL 246782 (Warakirri). The information herein is published by Warakirri and issued by Flinders representing Flinders’ view on economic and market topics. The views and opinion of Flinders is provided for informational purposes only and are subject to change without notice and are believed to be accurate at the time of publishing. The views and opinions do not constitute a recommendation to buy, sell, or hold any security, and should not be construed as investment advice. While the information herein has been prepared with all reasonable care, Flinders and Warakirri accept no responsibility or liability for any errors, omissions or misstatements however caused. Units in Flinders Emerging Companies Fund (ARSN 607 268 048) are issued by Warakirri. This information has been prepared to provide general product information to wholesale investors only and does not constitute financial advice as it does not take into account an individual’s personal objectives, financial situation or needs, and is not an offer or solicitation to enter into an agreement. The information contained herein should not be relied upon without first referring to the Fund’s Product Disclosure Statement (PDS), Reference Guide and the Target Market Determination (TMD) for a description of the target market and is available at www.warakirri.com.au or by calling 1300 927 254. Past performance is not a reliable indicator of future performance.
Lonsec Research and Zenith Investment Partners have both rated the Flinders Emerging Companies Fund as “Recommended”.
Underpinning Lonsec’s rating is their “conviction in the investment team which it views as highly capable and experienced complemented with a strong alignment of interests”. “The Manager’s investment process is considered logical, well-structured and disciplined, and the Fund remains attractively positioned from a capacity standpoint”.
Zenith states that its “conviction in the Fund is underpinned by the experienced investment team and its intuitive investment process”. “Zenith believes the investment process is well structured” and “the Fund is constructed to reflect the best investment ideas of the investment team”.
View Fund Ratings Important Information here.
Learn more about the Flinders Emerging Companies Fund
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This information has been prepared by Warakirri Asset Management Ltd (ABN 33 057 529 370) (AFSL 246782) (Warakirri) to provide general product information only and does not constitute financial advice as it does not take into account an individual’s personal objectives, financial situation or needs, and is not an offer or solicitation to enter into an agreement. Investments entail risks, the value of investments can go down as well as up and investors should be aware they might not get back the full value invested. Units in the Flinders Emerging Companies Fund (ARSN 607 268 048) are issued by Warakirri. Investors should not rely on the information contained herein without first referring to the Fund’s Product Disclosure Statement (PDS), Reference Guide and the Target Market Determination (TMD) for a description of the target market and seek independent advice from their financial adviser. Information for the Fund is available at www.warakirri.com.au or by calling 1300 927 254. Past performance is not a reliable indicator of future performance. Investment decisions should not be made upon the basis of the Fund’s past performance or distribution rate, since each of these can vary. Flinders Investment Partners Pty Ltd ABN 91 639 796 160 is a corporate authorised representative of Warakirri Asset Management Limited. The information discusses general market activity, industry or sector trends or other broad-based economic, market or political conditions and is for informational purposes only and should not be construed as research or investment advice. The information is believed to be accurate as at the date published but no warranty is made as to the accuracy, reliability or completeness. Any economic and market forecasts presented herein are for informational purposes as at the date published. There can be no assurance that the forecasts will be achieved. Although certain information has been obtained from sources believed to be reliable, there is no guarantee of its accuracy, completeness or fairness. Warakirri have relied upon and assumed without independent verification, the accuracy and completeness of the sources.
Fund Ratings Important Information
The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned ETL0449AU March 2023) referred to in this piece is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual, including target markets of financial products, where applicable, and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at Fund Research Regulatory Guidelines.
The rating issued October 2022 is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2023 Lonsec. All rights reserved.
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