The Maple-Brown Abbott Australian Small Companies fund would primarily invest in undervalued small companies where the investment team had conviction in medium-term earnings delivery and which were supported by sustainable business models.
The fund would typically hold 30–50 stocks which score well on combined earnings-based valuation and sustainability measures, with the focus on diversification and stock specific risk management.
It would aim to outperform the S&P/ASX Small Ordinaries (Total Return) index, after fees, over a five-year period.
Hudak and Griffin previously worked together on the AMP Capital Australian Emerging Companies fund.
Chief executive and managing director, Sophia Rahmani, said: “Phillip and Matt have an impressive track record and a compelling earnings-based philosophy integrating a sustainability focus that we believe differentiates the strategy. They also have a proven and repeatable investment process, focused on in-depth fundamental research.
“Judging by the early market feedback, history of the team and capacity limits of small-caps strategies, we expect this will be a popular offering for institutional and wholesale clients.”
Hudak said he and Griffin had worked diligently with the support of the broader Maple-Brown Abbott team to launch the fund within a relatively short period.
“The new fund is based on our existing strategy and core philosophy that earnings drive share prices rather than on any particular investment style. We consider the valuation and where the company is in the earnings cycle. We believe this combined with our focus on sustainability and avoiding short-term downgrades can deliver consistent returns.”
