PETALING JAYA: AmInvest unveiled its Global Smaller Companies Fund, offering investors to tap into the potential capital growth of small companies listed globally.
It elaborated the fund will feed into the target fund, Janus Henderson Horizon Fund – Global Smaller Companies Fund, which aims to identify good quality and potentially undervalued small-cap stocks.
The fund management firm’s chief executive, Goh Wee Peng believes the fund benefits from
structural drivers that will continue to support global small-cap growth and has partnered with investment manager Henderson Global Investors Ltd which has a team of regional specialists in the US, Europe, Singapore and Japan.
“Since its inception in August 2019 and until Nov 30, 2021, the target fund has delivered returns of 63.5% which is 17.1% higher compared to its benchmark,” she said in a statement.
“This has translated to returns of 23.6% per year by the target fund.”
AmInvest pointed out returns from global small-cap stocks have surpassed large-cap stocks over the long term as they have higher growth and more opportunities for future growth and have outperformed large caps by over 220% over the last 24 years.
It also noted, smaller companies are targets for mergers and acquisitions. To complete a takeover, the acquirer normally has to offer a valuation over and above where the share price has been trading. This premium has averaged between 21% and 40% in recent years.
The firm elaborated the target fund utilises fundamental and value-biased screening tools by identifying a narrow investable universe of around 100 to 200 quality stocks with growth potential. While the fund’s risks are managed by diversifying exposures by geography and market sector.
It stated the Global Smaller Companies Fund’s base currency is US dollars and it is being offered to sophisticated investors in US dollar and ringgit as well as an ringgit-hedged classes at an initial offer price of US$1 and RM1 per unit respectively during the initial offer period until Jan 30, 2022.