IFM Wholesale Small Caps Fund

IFM’s approach to Australian Small Caps is based on a view that the Australian Small Caps market has a number of inefficiencies that create opportunities for disciplined investors. These investment opportunities can arise in all sectors of the Australian small caps market as well as in both “value” and “growth” investment styles. We believe that focused and rigorous fundamental research can identify mis-priced stocks and that a consistent and systematic investment methodology can extract excess returns.

Investment approach

The IFM Small Caps Group uses fundamental research and quantitative methods to build a style-neutral small caps portfolio. The approach recognises that investment opportunities can arise in all market sectors as well as across the value-growth investment style spectrum.

The strategy’s competitive advantages are:

  • Aligned structure dedicated to institutional investors
  • Experienced, focused team of small caps specialists
  • Superior stock picking skills and track record of outperformance in small caps
  • Systematic investment process
  • Disciplined portfolio construction process
  • Strong ESG credentials.

Small Caps investment process

Our Small Caps investment process applies focused and rigorous fundamental research to identify mispriced stocks. This research effort is supported by consistent and systematic portfolio construction techniques to extract excess returns while maintaining low relative portfolio risk.

Experienced investment team

Neil Carter leads IFM’s Australian Small Caps strategy, supported by an experienced and balanced investment team with a long-term track record of outperformance in small caps. The Team has leading proprietary investment models as well as niche sector expertise in resources. The investment professionals that manage the Australian Small Caps strategy are:

Position Responsibilities Investment experience
Neil Carter Executive Director, Listed Equities (Small Caps) Managing all aspects of IFM’s Small Caps investment and management functions 15
Jim Copland Investment Director, Small Caps Portfolio management and investment analysis 13
Matt Griffin Associate, Small Caps Investment analysis and trading assistance 4
Alex Bibani Investment Analyst, Small Caps Dealing and investment analysis 9

Responsible investment considerations

IFM takes its obligations towards responsible investment and ESG seriously. This is demonstrated through our recognition of ESG issues across our investment process, our voting record and our Proxy Engagement Committee (PEC).

The Small Caps ESG analysis is largely based on our proprietary ESG valuation (ESGV) framework, which the Small Caps Group developed in conjunction with IFM’s Director of Sustainability and Responsible Investment. The ESGV framework rates each company against a range of ESG factors and also considers votes against board resolutions.

IFM has a strong record on voting and engagement with Neil Carter, Executive Director Listed Equities (Small Caps) participating in our Proxy and Engagement Committee (PEC). We actively vote all proxies and we advise clients of our voting intentions. We engage directly with companies where the situation warrants.

Learn more about IFM’s responsible investment in Listed Equities »