GSFM has partnered with Canadian-based Cambridge Global Asset Management, with the two looking to distribute the Cambridge Global Smaller Companies fund in the Australian and New Zealand markets.
The fund aims to provide long-term capital growth by investing in companies located anywhere in the world, except Australia, with a market capitalisation less than US$10 billion.
GSFM’s Chief Executive Officer Damien McIntyre said global small caps provides an attractive opportunity for Australian investors.
“Cambridge believes stock markets are inefficient and opportunities arise for patient, well-informed investors to buy an ownership stake in a company below intrinsic value,” Mr McIntyre said.
“This is particularly evident in smaller companies that tend to be underfollowed by the investment community.
“The fund comprises a high conviction portfolio of 30-50 companies and aims to deliver strong risk-adjusted returns. Emphasis is also placed on identifying companies that trade at a discount to intrinsic value.”
He added the team co-invests in the fund.
The fund is benchmarked against MSCI World ex-Australia Small Cap Index in Australian dollars.
“The agreement with Cambridge brings GSFM’s range of specialist funds management partnerships to seven,” Mr McIntyre said.
“These span Australian equities, global equities, global fixed income, alternative investment strategies, absolute return through global equities and now global smaller companies.”
GSFM is majority-owned and Cambridge is wholly owned by Canada’s CI Financial Corp (CI).
CI purchased an 80 per cent stake in GSFM in November 2016.
Cambridge, based in Boston and Toronto, manages more than $20 billion in assets on behalf of retail and institutional clients across different asset classes.
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