The VIP Small Companies Portfolio aims to provide long term capital growth from investment in an actively managed blend of established and emerging Australian companies, using a rules-based discretionary approach. At the beginning of 2019, portfolio management was mandated to Emerald Capital Australia, who maintain a high conviction unconstrained concentration of up to 25 listed Australian companies; constructed to provide exposure to capital growth over the long-term, but with consideration of capital preservation. They primarily invest using a thematic bottom-up approach targeting companies displaying a sustainable earnings trajectory, supported by strong margins and a proven profitability to cashflow conversion model. A percentage of the portfolio is exposed to early-stage Micro-Cap companies and, when deemed necessary, negatively correlated to the ASX All Ordinaries index using exchange-traded funds. Additional trend and momentum overlays seek to magnify returns while mitigating risk.
The VIP Small Companies portfolio is suitable for investors who:
The VIP Small Companies portfolio aims to be fully invested in Australian shares; however the portfolio can hold up to 50% in cash.