October, 2020
Performance Review Fund performance for the month of October was -2.00% (net of fees) versus the benchmark return of +1.31%, as measured by the S&P/ASX Emerging Companies Accumulation Index.
Fund Review The Fund underperformed against the S&P/ASX Emerging Companies Accumulation Index (Emerging Companies Benchmark) after a mix of disappointing stock-specific news and an aggressive sell-off in technology and consumer discretionary exposure. Uniti Group (UWL) was forced to increase its offer for OptiComm (OPC) after another last-minute bid by Aware Super. Post month-end, the UWL/OPC scheme was successfully approved, paving the way for completion, with the shares strengthening since. E-commerce names were aggressively sold down by the market with signs that elevated levels of online retail spending growth are moderating as the domestic economy reopens.
The flood of IPOs continues as companies seek to capitalise on a supportive environment for primary listings. The Fund remains disciplined in its approach, only pursuing select opportunities that satisfy our investment and valuation criteria, and refraining from many others due to lofty price expectations. Over the month, the largest positive contributors to performance were CleanSpace, OptiComm and Johns Lyng Group. Negative contributors included Uniti Group, McPherson’s and Megaport.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/2010-Ausbil-MicroCap-Product-Report.pdfticker: AAP0007AU
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factsheet_url:
https://www.ausbil.com.au/products/ausbil-microcap-fund
Monthly Performance Report
asset_class: Domestic Equity
asset_category: Australian Mid Cap
peer_benchmark: Domestic Equity - Mid Cap Index
broad_market_index: ASX Index MidCap 50 Index
structure: Managed Fund