UBS launches microcap product
Fund manager, UBS Global Asset Management has launched a new product - the UBS Microcap Fund.
Announcing the launch this week, the company said the fund had been established to uncover undervalued businesses with significant growth potential while leveraging UBS’s proven small cap investment capability in Australia.
It said the fund was intended to offer investors access to an actively managed, core style, diversified portfolio of microcap securities, managed by a dedicated microcap portfolio manager, Joel Fleming, with full support from the existing small companies team.
Commenting on the launch, UBS Australia Small Companies Fund portfolio manager, Stephen Wood said microcaps were a natural extension of the company’s small cap capability with its proven philosophy and process, disciplined approach, and successful 10 year performance track record.
“Our team has an established ability to navigate through a vast investment universe of microcap companies falling outside the ASX300,” he said.
Joel Fleming, Portfolio Manager for the UBS Microcap Fund said, “Microcaps represent a vast and dynamic investment opportunity as companies in this sector tend to be under-researched and overlooked by other investors. This provides an invaluable opportunity to invest in the businesses today that have the potential to become the household names of the future.”
The UBS announcement said the Microcap Fund’s target capacity of $150 million would remain uniquely small to suitably exploit the opportunities in the microcap investment universe.
The Fund aims to provide investors with a return (after management costs) in excess of the Benchmark hen measured over rolling five year periods. It is best suited to investors who seek a well-diversified portfolio of small capitalisation securities with an investment horizon of at least five years.
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