Clime Smaller Companies Fund
The Clime Smaller Companies Fund (CSCF) seeks to deliver strong risk-adjusted total returns by investing in a portfolio of high quality smaller Australian companies that are attractively priced.
The Fund aims to achieve an annual total return of 8% above the Australian Consumer Price Index (CPI) after fees over rolling five to seven year investment periods.
The Fund seeks to take advantage of what we believe to be a structurally inefficient market. The micro and small-cap segments of the market typically have limited research coverage, reflecting the lower commission potential on offer for traditional brokerage business models.
Concurrently, lower levels of liquidity prevent large institutions from meaningful participation in this market segment. The traditional institutional asset management approach continues to focus on benchmark-relative investing and maximising profitability via increasing funds under management rather than preserving high returns for clients. In aggregate, we believe this creates the opportunity for value-based, focused smaller company investors.
The Clime Smaller Companies Fund is appropriate for wholesale investors who seek to diversify their portfolios by increasing exposure to higher growth businesses outside the ASX200.
The Clime Smaller Companies Fund (established April 2017) has an investment horizon of a minimum of 5 years. Short-term returns are therefore not necessarily reflective of our long-term goals.
Update from the Portfolio Manager and investment team