Small Companies Trust
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ASX Code: MAAT
Listed on the ASX, MAAT is an Exchange Traded Product (“ETP) offering investors an Australian equity exposure with a strategy of outperforming the S&P ASX Small Ordinaries Total Return Index over the medium term (5 years).
This fund is appropriate for investors with “High” and “Very High” risk and return profiles. A suitable investor for this fund is prepared to accept high risk in the pursuit of capital growth with a medium to long investment timeframe. Investors should refer to the TMD for further information.
Ways to invest
- Invest through the ASX
- Invest directly with the Fund by completing an application form
- Speak to a Financial Advisor
Investors should read the Product Disclosure Statement (PDS) prior to investing. The Fund’s Target Market Determination(TMD) can be accessed here. There are differences between buying and selling Units on the ASX and applying for Units or making a withdrawal request to the Responsible Entity. These differences include, but are not limited to, the unit price Investors will receive for their application or redemption For more information on investing in MAAT and the differences between buying and selling Units on the ASX and applying for Units or making a withdrawal request to the Responsible Entity, please refer to sections 11 and 12 in the Fund’s PDS “Investing in the Fund” .
Latest Daily Unit Price
Latest Monthly Report
Monthly Performance Report: August 2023
In the month of August, the Fund rose +2.6% (after fees). This compares to the Small Ords return of -1.3% for the month. If you look at our performance tables at the end of this update it can be seen that we are beating the Small Ords over all time periods.
August is a reporting season month. For most companies this means providing details of their results to the period ended 30 June. Over time the market has become notorious for strong price reactions to company results. This year was an extreme example. Within the Small Ords this month more than 1/5th of stocks rose greater than +7.5% and more than 1/3rd fell over -7.5%.
Our portfolio had extremely divergent outcomes this month too, however on balance we had a good month compared to the market.
Our best contributor was Healthia (ASX: HLA) the roll up of physiotherapy, podiatry and optometry clinics. It received a takeover offer at an 80% premium to its share price, which had been falling for about 18 months due to staff absenteeism. This had been impacting revenue and margins since the end of Covid lock downs due to staff wariness of transmitting illness. We had sold some stock at higher levels but maintained a holding as we considered the stock grossly mispriced.
The next best contributor was Johns Lyng, the building repairs contractor (ASX: JLG, rising +21%) which had a stronger outlook than expected and was additionally somewhat re-rated by the market.
Our performance was also helped by our group trades in gold stocks and uranium stocks which both benefitted from their underlying commodity price strength.
The biggest detractor was NextEd (ASX: NXD, falling -18%) which provides education and training to tertiary students. It has benefited from the surge in Australian immigration however its outlook disappointed, because of a temporary Covid visa program which did not require their students to continue studying to stay in the country. Recently, students have increasingly exploited this loophole to avoid the vocational studies typically required under the original student visas. The government has since rectified the visa requirement, and the stock has recovered somewhat from its lows (it was down more than -40% at its worst). We expect NextEd to benefit from the recovery in vocational students.
The next biggest detractor was the lithium miner Sayona (ASX: SYA, falling -24%) which announced the immediate departure of its CEO and a strategic review by the board. We promptly exited the stock.
We will have more to say about the outlook for the market and our portfolio at our post reporting season webinar on Tuesday the 12th of September. You can register here if you haven’t already done so.
Return Summary Since Inception1(after all fees)
MAAT Performance Table
|as at 31 August 2023|
|Monash Investors Small Companies Trust (ASX MAAT)||S&P/ASX Small Ordinaries (Total Return)||Outperformance|
|2 Years (p.a.)||-4.7%||-8.1%||3.4%|
|Since Inception (p.a.)||0.1%||-3.7%||3.8%|
|Since inception date 28 May 2021. Past performance is not a reliable indicator of future performance|
The Monash Investors Small Companies Trust (ASX MAAT) is a high conviction fund with a strategy of outperforming the S&P ASX Small Company Index over the medium term (5 yrs).
The target universe is Australian Small Companies, defined as all stocks outside the S&P ASX 100 Index. However, should our research uncover compelling opportunities within the S&P ASX 100 Index, up to 20% of the Fund can be invested there. When this research uncovers a company likely to suffer material adverse business conditions we have the flexibility to invest up to 20% of the Fund in shorting these opportunities.
The Fund seeks to only invest in compelling opportunities. To identify these investment ideas, Monash Investors primarily employs fundamental, bottom-up company research and the judgement of its experienced portfolio managers.
About the Fund
|Bloomberg Code||MAAT AU|
|Trading Hours||10.00-16.00 (AEST)|
|iNAV IRESS Code||MAAT-AUINAV|
|Investment Manager||Monash Investors Pty Limited|
|Responsible Entity (RE)||The Trust Company (Re Services) Limited ("Perpetual")|
|Management Fee||1.3833$ p.a, of the NAV out of which the Responsible Entity's management fee is also paid|
|Performance Fee Hurdle||RBA cash rate + 5%|
|Performance Fee||20% excess return above the Benchmark after management fee|
|ARSN||642 280 331|
|Minimum Investment||If buying on the ASX, $Nil|
|If applying directly with RE, $10,000|
To download a history of the Unit Price please click here
|wdt_ID||Date||NAV (A$)||Entry Price(A$)||Exit Price(A$)||Distribution (A$)|
|19||01 Jun 2021||1.0078||1.0108||1.0048|
|20||02 Jun 2021||1.0132||1.0162||1.0102|
|21||03 Jun 2021||1.0133||1.0162||1.0103|
|22||04 Jun 2021||1.0226||1.0257||1.0195|
|23||07 Jun 2021||1.0195||1.0226||1.0164|
|24||08 Jun 2021||1.0203||1.0234||1.0172|
|25||09 Jun 2021||1.0194||1.0225||1.0163|
|26||10 Jun 2021||1.0262||1.0293||1.0231|
|27||11 Jun 2021||1.0407||1.0438||1.0376|
|28||15 Jun 2021||1.0457||1.0488||1.0426|
How to Invest
Investors can invest in the Fund by buying Units on the ASX or applying for Units directly by completing an Application Form and giving it to the Responsible Entity. Investors can invest in the Fund by purchasing Units via their trading platform or stockbroker. An Application Form is not required to be completed by Investors acquiring Units on the ASX as they will settle the purchase of their Units in the same way they would settle purchases of listed securities by the ASX CHESS settlement service. Units may also be acquired by completing the Application Form . The application will generally be accepted if you provide a correctly completed Application Form, identification documents (if applicable) and cleared application money before or at 2.00pm (Sydney time) on a Business Day. You will generally receive the Application Price calculated for the Business Day. There are differences between buying and selling Units on the ASX and applying for Units (or making a withdrawal request) to the Responsible Entity. These differences include, but are not limited to, the unit price Investors will receive for their application, and whether minimum investment amounts apply to their investment.
What is the minimum initial investment amount?
If you invest on the ASX there is no initial minimum investment amount. The minimum initial investment amount for Investors applying for Units directly with the Responsible Entity is $10,000. Additional investments can be made into an existing account at any time. A minimum amount may apply to additional investments depending on the method of your payment. Please also refer to sections 11 and 12 of the PDS.
What is the difference between ASX and NAV price?
The daily unit price reflects the Net Asset Value (NAV) at the end of the trading day.
As an active ETF, MAAT will publish an indicative NAV (“iNAV”) which reflects the real time movements in stock markets during the ASX Trading Day and, for securities not trading during the ASX Trading Day, listed proxy instruments. The iNAV represents the best estimate of the value per unit MAAT throughout the trading day. The iNAV calculation is performed by ICE Data and then provided to Macquarie Securities (Australia) Limited, the market maker which acts as an agent of MAAT.
What are the fees?
Please refer to section 10 “Fees and other costs” of the PDS.
How to withdraw my investment in the Fund?
Investors can exit the Fund either by directly making a withdrawal request to the Responsible Entity using a Withdrawal Form or by selling Units on the ASX. You need to hold your Units on the issuer sponsored sub-register to make a withdrawal request directly to the Responsible Entity. Your stockbroker can assist you with this process if you hold your Units on a HIN. The method by which you enter the Fund does not affect the method by which you can exit the Fund. If you enter the Fund by buying Units on the ASX you can exit the Fund by selling Units on the ASX or by withdrawing directly with the Responsible Entity. If you enter the Fund by applying for Units directly with the Responsible Entity you can exit the Fund by selling Units on the ASX or by withdrawing directly with the Responsible Entity. There are important differences between entering and exiting the Fund via the ASX or by applying for and withdrawing Units directly with the Responsible Entity. An investor who redeems Units directly with the Responsible Entity is likely to receive a different price for their Units in the Fund to an investor who sells their Units on the ASX at the exact same time. These differences in prices received by investors may result in a different return from an investment in the Fund.
Become an investor
This information is issued by Monash Investors Pty Limited ABN 67 153 180 333, AFSL 417 201 (“Monash Investors”) as authorised representatives of Sanlam Private Wealth Pty Ltd ABN 18 136 960 775, AFSL 337 927 (“Sanlam”) for the provision of general financial product advice in relation to the Monash Absolute Active Trust (Hedge Fund) ARSN 642 280 331 (“Fund”). Monash Investors is the investment manager of the Fund. The Trust Company (RE Services) Limited ABN 45 003 278 831, AFSL 235 150 (“Perpetual”) is responsible entity of, and issuer of units in, the Fund. The inception date of the Fund is 28 May 2021.
The information provided in this document is general information only and does not constitute investment or other advice. The content of this document does not constitute an offer or solicitation to subscribe for units in the Fund or an offer to buy or sell any financial product. Accordingly, reliance should not be placed on this document as the basis for making an investment, financial or other decision. This information does not take into account your investment objectives, particular needs or financial situation. Monash Investors, Sanlam and Perpetual do not accept liability for any inaccurate, incomplete or omitted information of any kind or any losses caused by using this information. Any investment decision in connection with the Fund should only be made based on the information contained in the disclosure document for the Fund. A Product Disclosure Statement (“PDS”) issued by Perpetual dated 21 May 2022 together with a Target Market Determination (“TMD”), both issued by Perpetual, is available for the Fund. You should obtain and consider the PDS and TMD for the Fund before deciding whether to acquire, or continue to hold, an interest in the Fund. A copy of the PDS and TMD is available on this website.
Performance figures contained on this Website are not necessarily indicative of future returns and should be used as a general guide only. Returns on investments necessarily are volatile and subject to change and likely to vary from year to year. Total returns shown for the Fund have been calculated using exit prices after taking into account all ongoing fees and assuming reinvestment of distribution. No allowance has been made for taxation Past performance is not a reliable indicator of future performance. Comparisons are provided for information purposes only and are not a direct comparison against benchmarks or indices that have the same characteristics as the Fund. Reference to Target Distributions, is a target return only. There is no guarantee that the Fund will meet its investment objective. The payment of a quarterly distribution is a goal of the Fund only and neither Monash Investors or Perpetual provide any representations or warranty (whether express or implied) in relation to the payment of any quarterly cash income. The Trust reserves the discretion to amend its distribution policy Past performance is not a reliable indicator of future performance. Comparisons are provided for information purposes only and are not a direct comparison against benchmarks or indices that have the same characteristics as the Fund.
Monash Investors, Sanlam and Perpetual do not guarantee repayment of capital or any particular rate of return from the Fund and do not give any representation or warranty as to the reliability, completeness or accuracy of the information contained in this document. All opinions and estimates included in this document constitute judgments of Monash Investors as at the date of this document are subject to change without notice. Perpetual is not responsible for this document.
The rating contained on this website is issued by SQM Research Pty Ltd ABN 93 122 592 036 AFSL 421913. SQM Research is an investment research firm that undertakes research on investment products exclusively for its wholesale clients, utilising a proprietary review and star rating system. The SQM Research star rating system is of a general nature and does not take into account the particular circumstances or needs of any specific person. The rating may be subject to change at any time. Only licensed financial advisers may use the SQM Research star rating system in determining whether an investment is appropriate to a person’s particular circumstances or needs. You should read the product disclosure statement and consult a licensed financial adviser before making an investment decision in relation to this investment product. SQM Research receives a fee from the Fund Manager for the research and rating of the managed investment scheme