AdviserVoice
Leading independently-owned investment research provider Zenith Investment Partners has recognised Fairlight Asset Management’s Global Small and Mid Cap Fund with a Recommended rating.
Zenith’s research process seeks to identify investment managers the firm considers to be ‘best of breed’ through a comprehensive, multi-dimensional selection process. Zenith deems Recommended products to be strong investments within their respective asset class, typically rating in the first quartile for most criteria.
“Zenith’s Recommended rating is a rigorous and welcome endorsement of the Fairlight investment strategy,’ said Nicholas Cregan, Fairlight Portfolio Manager and Co-Founder. “We believe the small and mid cap sector, as compared to its large and mega cap counterparts, represents a significantly under researched segment of the market. There is a wealth of evidence to support the claim that globally, smaller companies outperform their larger counterparts over the long-term.”
“Zenith believes that Cregan and Carmichael are experienced and capable investors with complementary skill sets. In addition, we believe the investment team is sufficiently resourced to provide high levels of analytical research. From a business stability perspective, Fairlight’s partnership with the founders of Perennial, which was struck in May 2019, provides Zenith with a high degree of comfort. Overall, Zenith believes the Fund is well positioned to deliver upon its investment objectives,” said Mr Quan Nguyen, Head of Equities at Zenith.
Sydney-based boutique investment manager Fairlight specialises in global small and mid cap stocks, with a strong emphasis on quality. The Global Small and Mid Cap Fund aims to deliver investors an 8% – 12% net return through the market cycle with lower volatility than the index, employing a concentrated, long-only strategy investing in 30 – 40 businesses in markets outside Australia.
Commenting on the rating, Cesar Farfan, Perennial’s Head of Retail Distribution, said it is welcome affirmation of the growing interest in the small and mid-cap market, complementing Perennial’s existing offerings.
“Recent research shows a growing interest in this segment of the market, with several of the incumbent managers either approaching capacity or more focused on larger capitalisation stocks. At Perennial we know firsthand the benefits of having exposure to this sector of the market, having built a successful mid-small-micro cap boutique ourselves, headed by Andrew Smith, with funds under management of circa $1.4 billion across wholesale and institutional clients. We are very excited to introduce the Fairlight offering to our clients,” said Mr Farfan.
Fairlight’s principals have direct equity ownership to maximise alignment between the interests of investors and the firm’s staff and deliver superior investment outcomes. The Fund has delivered strong annualised returns above the MSCI World Small & Mid Cap Index since inception. Fairlight is a signatory to the United Nations Principles for Responsible Investment.
