Our Fund
Smaller Companies Fund
The Fundamental Smaller Companies Fund is an actively managed portfolio investing in a broad range of small cap companies in Australia.
By utilizing our investment philosophy of buying what we assess as good quality companies that look undervalued relative to their long-term fundamentals, we seek to construct a portfolio that we believe can deliver returns superior to the Small Ordinaries Accumulation Index over the medium to longer term.
The Fund is actively managed as we seek stocks on their investment merits and are not looking to replicate the Small Ords index weightings. In addition, the Fund can hold up to 20% in cash when valuations in the sector start to look stretched relative to their fundamentals.
Important Update
FUNDAMENTAL SMALLER COMPANIES FUND (FUND)
This website notice informs the investors in the Fundamental Smaller Companies Fund (Fund) of an important update.
- Summary of Changes
- The circumstance under which the Manager, Fundamental Investment Management, can charge a performance fee has been clarified.
- In addition to the Fund needing to outperform the S&P/ASX Small Ordinaries Accumulation Index (the Benchmark) during a performance period (June/December), the performance of the Fund needs to be positive in order for the Manager to charge a performance fee.
- The Trust Deed of the Fund (Trust Deed) has not been amended to take account of this change.
- What this means for investors
- The change to how the Manager may charge a performance fee is considered by the Manager to be beneficial to investors.
- You do not need to take any action in relation to this change.
If you have any questions about this change, please contact us at +61 2 8319 5669.
Thank you for your continued support of the Fund.
Kind regards,
- Melbourne Securities Corporation Limited Trustee for the Fundamental Smaller Companies Fund
About the Fund
| Inception | APIR | Distribution frequency | Management fee | Performance fee | Ordinary Expenses |
|---|---|---|---|---|---|
|
1 July 2026 |
MSC9295AU |
Semi-annually |
1.10% (excluding GST) of the Net Asset Value of the Fund. |
15% (excluding GST) of the total return of the Fund (after deducting Management fees and expenses) in excess of the return of the S&P/ASX Small Ordinaries Accumulation Index during a relevant performance period (or part period where relevant) and provided any underperformance from previous periods has been recovered. |
Estimated ordinary expenses of 0.12% pa (excluding GST), abnormal expenses are not included in the estimate. |
Performance
Net performance as at 30 September 2026
| 1 mth | 3 mth | 6 mth | 1 yr | S.I. | |
|---|---|---|---|---|---|
|
FIM Smaller Companies* |
-0.85% |
+1.25% |
– |
– |
+1.25% |
|
S&P/ASX Small Ordinaries Accumulation Index |
-2.34% |
-0.53% |
– |
– |
-0.53% |
* Net performance is calculated after all fees and expenses. Past performance is not a reliable indicator of future performance for this Fund.
Distribution
| Period ending | Amount (cents per unit) |
|---|---|
|
December 2026 |
60 |
