BetaShares Australian Small Companies Select Fund (Managed Fund)

BetaShares Australian Small Companies Select Fund (Managed Fund) is an exchange traded fund that provides exposure to a diversified portfolio of high-quality, profitable small-cap companies listed on the Australian Securities Exchange. The primary purpose of the fund is to deliver long-term capital growth and income, seeking to outperform the S&P/ASX Small Ordinaries Accumulation Index by investing in companies that sit approximately between the 91st and 350th largest by free float market capitalization in Australia. The fund employs a rigorous selection process, focusing on businesses with positive earnings and a strong ability to service debt, while also considering factors like relative valuation, price momentum, and liquidity. By doing so, it aims to avoid weaker companies that may hinder long-term performance, offering a tailored approach to small-cap investing. Market significance arises from its role in facilitating portfolio diversification. Australian equity portfolios often have a heavy bias toward large-cap stocks, and this fund enables investors to access growth potential unique to the smaller end of the domestic market. The fund is managed by BetaShares Capital and features a transparent, cost-effective structure, paying distributions semi-annually with franking credits frequently attached to its payments.