After a recent review, the Aberdeen Australian Small Companies Fund has been upgraded to “Highly Recommended” by Lonsec.
This follows the “Highly Recommended” rating by Lonsec of the Aberdeen Ex-20 Australian Equities Fund in November 2015.
Both Funds are managed by Aberdeen’s Australian Equities team and follow the same fundamental approach. In its report, Lonsec described the Aberdeen process as robust, repeatable and highly comprehensive, structured to assist in developing a deep understanding of companies and with deep contact with company management as the cornerstone.
It said the “Highly Recommended” rating of the Aberdeen Australian Small Companies Fund reflects its positive view on the quality of the investment team and Aberdeen’s long standing and proven equity investment process that underpins this strategy. Lonsec also acknowledged the team’s encouraging track record.
The Aberdeen Australian Small Companies Fund has performed strongly. In the year to 31 December 2015, it returned 19.1% (net), outperforming the S&P/ASX Small Ordinaries Accumulation Index by 8.9%. Over five years, the Fund returned 12.8% p.a. (net), outperforming the index by 15.3% p.a.
Rob Penaloza, Aberdeen’s Head of Australian Equities, said “Large companies tend to attract the spotlight, so there is a risk that investors might overlook the opportunities in small companies which can offer higher growth potential and profitability. Aberdeen’s focus on quality and our rigorous research help us to uncover those companies with excellent management, sound corporate governance practices and strong balance sheets, and take advantage of mispricing opportunities to deliver strong returns for our clients.”
The Aberdeen Australian Small Companies Fund is currently available on platforms including AMP North, BT Wrap, Asgard, IOOF Pursuit, Macquarie Wrap, netwealth, MLC Wrap and Oasis.
