Monthly Fund Update - EGG Emerging Companies Fund

Monthly Fund Update - EGG Emerging Companies Fund

WHAT DOES IT INVEST IN?

EGG Emerging Companies Fund offers exposure to a diversified portfolio of Australian listed emerging companies that reside outside the S&P ASX200 Index. The Fund uses an investment process known as SCOPE, a relative stock scoring tool that ranks stocks from highest to lowest based on their score.

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WHAT IS ITS PERFORMANCE?

The EGG Emerging Capital Fund was able to finish with +14.83% versus the Small Ordinaries Accumulation Index of +5.67%. Small companies overall continues their year long outperformance of big caps during the September quarter with the Small Ordinaries Accumulation Index +51.2% from the March 23 COVID-19 lows versus the ASX100 Accumulation Index +28.2%.

Source: EGG, as at 31 Dec 2020

PROCESS AND OTHER INFORMATION

The Emerging Companies Fund offers investors exposure to a diversified portfolio of Australian listed emerging companies that reside outside the S&P ASX200 Index. The Fund is benchmarked against the S&P ASX Small Ordinaries Accumulation Index and was launched 1 March 2017.

The team combines fundamental bottom-up research of companies with an in-depth qualitative assessment of their management and industry structure. Our proprietary investment process, known as SCOPE (Small Company Optimal Portfolio Evaluation), is a relative stock scoring tool that ranks stocks from highest to lowest based on their score. The portfolio comprises the best scoring stocks, subject to a number of risk constraints, such as maximum active position size (7%) and liquidity.

The outworking of this process is a portfolio that typically exhibits both growth and value characteristics that can outperform the market over the long-term.

*The information shared here is general in nature and is not an advice to invest in the fund.