Ausbil appointed co-manager for NYSE-listed fund

Ausbil has been appointed co-manager of a New York Life Investment Management (NYLIM) fund, helping oversee a new global small-mid cap equity strategy.

Together with NYLIM, Ausbil co-manages the newly launched NYLI International Small-Mid Cap Equity ETF, which is offered on the NYSE under ticker code NISM.

For Ausbil, Tobias Bucks and Simon Wood lead the portfolio management.

The fund invests in high-quality small- and mid-cap companies of between 50 and 100 based outside the US with market capitalisations ranging from US$500 million to US$35 billion.

The fund employs a four-stage investment process that integrates macroeconomic analysis, regional and sector allocation, bottom-up stock selection and risk-aware portfolio construction.

Incepted on May 13, the fund currently has about US$25 million in assets. Some top holdings are TMX Group, Nissan Chemical Corporation, Terna and Centrica.

The new mandate builds on Ausbil's established global small-cap strategy, targeting market inefficiencies by investing in quality companies with overlooked growth potential and attractive valuations, supported by disciplined qualitative, quantitative, and risk management processes.

The $20 billion fund manager, which invests in global and domestic equities, recently launched its own Active Sustainable Equity Fund. NYLIM acquired Ausbil in 2014 from Dexia Asset Management for $587 million.

"Our investment philosophy is rooted in the belief that unrecognised earnings growth ultimately drives share prices," Bucks said on launching NISM.

"By combining top-down macro insights with fundamental research, we aim to build a high-conviction portfolio of companies that we believe are positioned to outperform over time."

NYLIM is an US$807 billion active fund manager and part of the global asset management businesses of New York Life Insurance Company.

NYLIM head of US retail Kirk Lehneis said: "At a time when many investors are looking beyond both the US and the universe of large-cap companies, we believe international small and mid-cap equities offer a compelling opportunity set."

The new fund, Lehneis added, is designed to help investors access that opportunity through a disciplined, research-driven approach that prioritises quality and long-term growth.