Smaller companies: Bigger potential

Smaller companies account for around 70%* of all listed companies and offer a wealth of choice to investors. Relative to larger peers, they typically provide exposure to:

  • Companies that generate a higher proportion of revenues from local markets
  • An alternative set of risks
  • Companies with the potential to grow rapidly

These distinct features provide strong diversification benefits when added to a large-cap equity portfolio. Smaller companies also tend to attract less analyst coverage than their larger peers. This means there may be greater and more frequent discrepancies between their fundamentals and their market valuations. This creates a rich environment for fundamental, active stock-pickers such as ourselves. At ASI, we offer local investors both Australian and Global small-cap equity funds. We believe stock-specific insights drive returns. As active investors, we therefore build our portfolios from the bottom up. This research-intensive process gives our clients direct access to our best small-cap investment ideas.

*Number of smaller companies is a percentage of total companies listed on MSCI ACWI and MSCI ACWI Small Cap.

Key Benefits

Local presence – global insight

Aberdeen Standard Investments has a strong history of managing equity portfolios across multiple market cycles. We now manage more than £144.20bn / A$257.7bn* in client equity mandates.

We maintain a deep local presence across markets. Our 149 equity investment professionals cover around 3,000 stocks globally and conduct around 7,500 company meetings a year. Insight is shared and rigorously peer-reviewed, within and across teams, so only those we consider the strongest investment opportunities are included in client portfolios.

Focus on client goals

Our disciplined research-driven approach is applied to meet distinct client goals – from ‘high active’ portfolios aiming to deliver long-term outperformance, to income strategies targeting a premium yield, and values-based strategies designed to meet specific ethical, socially responsible and impact-investing goals.

*Source: Aberdeen Standard Investments. As at 30 June 2018

Fund in focus

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