Airlie Small Companies Fund

The Airlie Small Companies Fund offers investors exposure to a concentrated portfolio of high-quality Australian small companies.

The Fund seeks long-term capital growth and income by investing in businesses with strong financial positions, attractive business models, and capable management teams. Airlie's experienced investment team employs a prudent, bottom-up approach to identify undervalued opportunities within this market segment.

With a focus on fundamental analysis and a disciplined investment process, the Fund aims to deliver superior returns over the long term.

The Airlie Small Companies Fund ('Fund') provides an opportunity to access a highly experienced investment team with a proven track record of prudent, common sense investing.

The Fund will generally hold a  portfolio of between 20-40 quality Australian listed small companies which when first acquired do not rank in the S&P/ASX 100. The Maximum cash and cash holding equivalents of the Fund is 10%. You will have access to the Investment Manager’s investment expertise and a professionally managed Australian equities portfolio.

Investment objective

The Fund’s primary investment objective is to provide long-term capital growth and income through investing in Australian listed small companies.

"The Airlie investment process weighs four factors when considering a potential investment."

Financial Strength
The first thing we consider is the balance sheet.

Only those companies with solid financial characteristics, including appropriate levels of debt for the business model, are considered for investment.

Business Quality
The research process focuses on the quality of the business.

looking for businesses that can earn attractive or improving returns on capital in the future.

Given the decades of investment experience of the Airlie team, we typically have considerable knowledge of the histories, industries and strategies of the stocks in which we invest.

Quality of Management
Airlie seeks to invest in companies with competent managers whose interests ideally align with those of shareholders.

Airlie has a particular preference for investing in founder-led businesses, which it has found typically exhibit a longer-term focus that is rewarding for shareholders. In order to make an assessment of business and management quality, Airlie regularly meets with management teams and boards of Australian companies.

Valuation
Airlie turns to valuation last, as we believe you can only value a business if you understand it.

We see returns as the ultimate driver of valuation, and focus our efforts on understanding the likely direction of future returns. We seek to invest where our assessment of the quality and worth of a business exceeds the prevailing market price.

We also explicitly consider ESG risks as part of our investment process.

Airlie Funds Management, is an active bottom-up investor that aims to build a concentrated portfolio of Australian equities.

Airlie employs a prudent, common-sense investment approach that identifies companies based on their financial strength, attractive durable business characteristics and the quality of their management teams. Airlie invests in these companies when their view of their fair value exceeds the prevailing market price.

Click here to view our latest Performance details.

This material has been delivered to you by Magellan Asset Management Limited ABN 31 120 593 946 AFS Licence No. 304 301 trading as Airlie Funds Management (‘Airlie’) and has been prepared for general information purposes only and must not be construed as investment advice or as an investment recommendation.  This material does not take into account your investment objectives, financial situation or particular needs. This material does not constitute an offer or inducement to engage in an investment activity nor does it form part of any offer documentation, offer or invitation to purchase, sell or subscribe for interests in any type of investment product or service. You should obtain and consider the relevant Product Disclosure Statement (‘PDS’) and Target Market Determination (‘TMD’) and consider obtaining professional investment advice tailored to your specific circumstances before making a decision about whether to acquire, or continue to hold, the relevant financial product. A copy of the relevant PDS and TMD relating to an Airlie financial product or service may be obtained by calling +61 2 9235 4760 or by visiting www.airliefundsmanagement.com.au.

Past performance is not necessarily indicative of future results and no person guarantees the future performance of any financial product or service, the amount or timing of any return from it, that asset allocations will be met, that it will be able to implement its investment strategy or that its investment objectives will be achieved. This material may contain ‘forward-looking statements’. Actual events or results or the actual performance of an Airlie financial product or service may differ materially from those reflected or contemplated in such forward-looking statements.

This material may include data, research and other information from third party sources. Airlie makes no guarantee that such information is accurate, complete or timely and does not provide any warranties regarding results obtained from its use. This information is subject to change at any time and no person has any responsibility to update any of the information provided in this material. Statements contained in this material that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of Airlie. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. No representation or warranty is made with respect to the accuracy or completeness of any of the information contained in this material. Airlie will not be responsible or liable for any losses arising from your use or reliance upon any part of the information contained in this material.

Any third party trademarks contained herein are the property of their respective owners and Airlie claims no ownership in, nor any affiliation with, such trademarks.   Any third party trademarks that appear in this material are used for information purposes and only to identify the company names or brands of their respective owners. No affiliation, sponsorship or endorsement should be inferred from the use of these trademarks.  This material and the information contained within it may not be reproduced, or disclosed, in whole or in part, without the prior written consent of Airlie.