Benefits of investing in the Ironbark Renaissance Australian Small Companies Fund

Benefits of investing in the Fund include:

• professional investment management, accessing the Investment Manager's proprietary research and portfolio construction skills;
• accessing investment opportunities and diversity that may not be as easily accessible to investors who invest directly in securities;

Risk level

High

Investor suitability

The Fund may suit an investor seeking high growth potential over the suggested investment horizon and, willing to accept the higher risk/return profile of investing in an actively managed portfolio of smaller companies listed on the ASX.

About the Fund

The Ironbark Renaissance Australian Small Companies Fund’s (Fund) objective is to outperform its benchmark, the S&P/ASX Small Ordinaries Index, before fees over rolling 4-year periods.

With a robust investment process that maintains a strong focus on stock selection, the Fund offers investors an opportunity to access a value style portfolio of diversified small capitalisation securities. The Fund is actively managed by a team of specialist investors at Renaissance Smaller Companies, whose approach to Australian equities is built on the belief that fundamental, bottom-up research can identify undervalued companies that can deliver superior returns over time.

Why invest?

• The Fund invests in a value-style portfolio of up to 65 small cap Australian stocks that display evidence of strong fundamentals and reasonable valuations
• Since their inception in 2003, Renaissance has continued to refine their fundamental, bottom-up investment process that has a disciplined approach to risk management
• The Fund is managed by a stable investment team with extensive experience investing in Australian small companies with a well-established footprint in the institutional market
• The Fund has the flexibility to invest in unlisted companies that are expected to list within six months of purchase.

How we invest your money

Renaissance employs an active approach to investment management, adopting a ‘bottom up’, value-based philosophy. Renaissance identify opportunities by monitoring the difference between prevailing market prices and the assessed valuation. Most commonly this occurs due to behavioural inefficiencies, caused by sentiment or momentum driven price movements, or informational inefficiencies, situations where the market has mispriced securities due to incorrect assumptions or lack of recognition of change. This approach reflects the belief that, in the absence of structural change, security prices will ultimately tend back to fair valuation through the course of an investment cycle. Renaissance’s investment process is focused upon identifying these opportunities.

The Fund may invest in:

• up to 65 Australian companies;
• up to 10% of the Fund, in securities included in the S&P/ASX MidCap 50 Index; and
• up to 25% of the Fund, in securities outside the S&P/ASX 300.
• Up to 10% of the Fund may be invested in unlisted securities that intend to list within 6 months of the date of purchase.
• Investments of the Fund may also include derivatives such as index futures, which would only be used for risk management purposes.

Asset allocation

• Australian equities: 85%-100%

• Cash: 0%-15%

The asset allocation is only a target, actual allocations can change within the ranges significantly and sometimes quickly.