Monash Investors
Small Companies Fund
Become an investor
The Monash Investors Small Companies Fund (Fund) is an unlisted retail unit trust offering investors an Australian equity exposure with a strategy of outperforming the S&P ASX Small Ordinaries Total Return Index over the medium term (5yrs).
The Fund has been in operation since July 2012, and over this time after all fees has outperformed the Index by approximately 4% per annum and deliver an average total return of approximately 10% per annum.
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.
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.
August 2023
Performance of the Fund
(after fees)
| Monash Investors Small Companies Fund | S&P/ASX Small Ordinaries (Total Return) | Outperformance | |
| 1 Month | 2.6% | -1.3% | 3.9% |
| 3 Months | 6.1% | 2.2% | 3.9% |
| 1 Year | 1.3% | -1.1% | 2.4% |
| 3 Years (p.a.) | 7.4% | 3.0% | 4.4% |
| 5 Years (p.a.) | 10.0% | 2.4% | 7.6% |
| 7 Years (p.a.) | 7.6% | 5.2% | 2.5% |
| Since Inception (p.a) | 9.8% | 5.7% | 4.1% |
| Since inception date 2 July 2012. Past performance is not a reliable indicator of future performance | |||
Fund Strategy
The Monash Investors Small Companies Fund (ARSN 606 855 50) 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.
For all business development enquiries, please contact
Cameron Harris
P. +61 400 248 435
E. cameron@gsmcapital.com.au
For all investor enquiries, please contact
Apex Fund Services P: 1300 133 451 or by email at registry@apexgroup.com
Monash Investors Small Companies Fund Registry Services, GPO Box 4968 , Sydney NSW 2001
For all other enquiries
E. contactus@monashinvestors.com
Current Unit Price and Unit Price History
| As at 26 Sep 2023 | |
| Buy | 1.5043 |
| Sell | 1.4953 |
| Month to Date Performance (after fees) | -3.39% |
To download a complete history of the Unit Price
MAIF Fund Facts
| Fund Facts | Description |
| Objective | Outperforming the S&P/ASX Small Ordinaries (Total Return) Index over the medium term (5yrs) |
| Strategy | Australian Small Companies |
| Minimum Investment | $20,000 |
| Minimum Additional Withdrawal/Investment | $5,000 |
| Price Frequency | Daily |
| Distribution Frequency | Annual |
| Management Fee | 1.2813% p.a. |
| Performance Fee | 20.5% p.a. > RBA Cash Rate + 5% with a high watermark |
| Buy and Sell Spread | 0.60% |
| APIR Code | MON0001AU |
| ISIN | AU60MON00014 |
| Platforms listed on | BT Wrap, Hub24 Invest, Macquarie Wrap, ManagedAccounts.com.au, Mason Stevens, netwealth, Powerwrap |
ENQUIRIES AND COMPLAINTS
The Responsible Entity has established procedures for dealing with complaints. If an investor has a complaint, they can contact the Responsible Entity or the Investment Manager during business hours.
The Responsible Entity will use reasonable endeavours to deal with and resolve the complaint within a reasonable time but in any case, no later than 30 days after receipt of the complaint. Other type of complaints and complex complaints may have a different maximum response timeframe. We will let you know if a different maximum response timeframe will apply to your complaint.
If an Investor is not satisfied with the outcome, the complaint can be referred to the Australian Financial Complaints Authority (AFCA). The AFCA provides a fair and independent financial services complaint resolution service that is free to consumers.
Website: www.afca.org.au
Email: info@afca.org.au
Telephone: 1800 931 678
In writing to: Australian Financial Complains Authority, GPO Box 3, Melbourne VIC 3001
All investors (regardless of whether you hold Units in the Fund directly or hold Units indirectly via a Platform) can access Perpetual’s complaints procedures outlined above. If investing via a Platform and your complaint concerns the operation of the Platform then you should contact the Platform operator directly.
Become an investor
The Trust Company (RE Services) Limited (ABN 45 003 278 831, AFSL 235 150) (Perpetual) is the Responsible Entity of and issuer of units in the Monash Investors Small Companies Fund and Monash Investors Small Companies Trust ASX: MAAT and Monash Investors Pty Ltd (ABN 67 153 180 333 AFSL 417201)(Monash Investors) is the investment manager of the Funds.
Monash Investors issues and operates this website. All opinions and estimates on this website constitute judgements of Monash Investors and are subject to change without notice. The information on this website is provided for general information purposes only, and is not to be construed as solicitation of an offer to buy or sell any financial product. Accordingly reliance should not be placed on this website as the basis for making an investment, financial or other decisions. The information on this website does not take into account your investment objectives, particular needs or financial situation. Whilst every effort is taken to ensure the information on this website is accurate, its accuracy, reliability or completeness is not guaranteed. A product disclosure statement (PDS) and Target Market Determination (TMD) issued by Perpetual is available for the Funds on this website. You should obtain and consider the PDS and TMD before deciding whether to acquire, or continue to hold, an interest in the Funds. Initial applications for units in the Funds can only be made pursuant to the application form attached to the PDS.
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. These returns are likely to vary from year to year. Returns have been calculated using exit prices after taking into account all ongoing fees, and assuming reinvestment of distributions. No allowance has been made for taxation. Future returns may bear no relationship to the historical information displayed. Returns in a Fund can be particularly volatile in the short term and in some periods may be negative. Neither Perpetual nor Monash Investors makes any guarantee or representation in regards to the performance of any of the funds, nor the specific rate of return to investors or the return of capital.