2003 Media Releases

Deutsche Asset Management today launched a specialist Australian equities fund, the Deutsche Australian Small Companies Fund, capitalising on the group’s sector strength in Australian equities, as well as a perceived market gap.

The Fund primarily invests in Australian small companies listed or expected to be listed on the Australian Stock Exchange and has an investment objective to outperform the S&P/ASX Small Ordinaries Accumulation Index, before fees, over rolling three-year periods.

Bruce Murphy, Head of Retail Distribution for Deutsche Asset Management, explained there are two core drivers behind the Fund’s launch. “It’s extremely opportune for Deutsche to be launching a small companies fund at this time. First, our recognised Australian equities capability make this Fund launch a natural progression. Our Australian equities team is one of the highest rated teams in the market for process and people, and it makes perfect sense for us to capitalise on this expertise with this third, ‘next generation’ product in our domestic equities suite.”

“Second, there is a gap in the market, with several competing small company fund offerings at or near their maximum size for best investment results, or in fact closed to new money. This is coupled with demand from advisers and investors, who believe there are better opportunities from small companies than their larger counterparts,” added Mr Murphy.

Stuart Jordan, Head of Deutsche Asset Management’s Small Companies team, agrees with Mr Murphy that the timing for the Fund’s launch couldn’t be better.

“Small company valuations are currently appealing compared to large companies, and we believe they are better placed when the high equity risk premium unwinds. Small companies offer opportunities to achieve significant outperformance if the manager does their homework – it’s very much a stock picker’s market,” he said.

Mr Jordan has specialised in small companies investing for the past 9 years at Deutsche Asset Management. His team of three specialist analysts have more than 25 years combined experience in small companies investing, which Mr Jordan believes makes Deutsche well positioned to find the top stock picks.

“Large cap stocks are scrutinised by a large number of analysts, while small companies are often not as well-researched. Our dedicated small companies team apply Deutsche’s proprietary cashflow valuation methodology to a large universe of small companies. This methodology allows us to have different insight into these companies, compared to the market’s short-term focus. We are also backed by one of the largest Australian equities teams in the country, and in turn, one of the most integrated research and investment platforms in the world. We are able to identify stocks that are not even on analysts’ radars yet,” added Mr Jordan.

With a target size of $500 million and a minimum initial investment of $100,000, the Deutsche Australian Small Companies Fund is open to both institutional and retail investors via a prospectus. The Fund is also expected to be available on the leading wrap accounts and master trusts in the coming months.

For further details - Bruce Murphy on (02) 9249 9096.

About Deutsche Asset Management’s Australian equities capabilities

Deutsche Asset Management is one of the world’s largest fund managers providing asset management capabilities to a variety of clients worldwide, including foundations, non-profit organisations, public and private superannuation funds, high-net-worth individuals and retail investors. Our global client base, totalling over A$1.31) trillion in funds under management, ranges from relatively small investors in our unit and investment trusts, to large segregated portfolios.

In Australia, Deutsche Asset Management manages over A$281 billion on behalf of Australian domiciled clients. We are one of the few fund managers in Australia that combines an established local presence with the resources of a global network and the discipline of a global investment process. We are the only global fund manager operating in Australia with a comprehensive traditional investment offering, as well as substantial alternative asset businesses (hedge funds, private equity, and real estate).

The Australian equities team, based in our Sydney offices, manages over A$7.31 billion in specialist Australian equities mandates on behalf of Australian clients. We offer three unit trusts: the Deutsche Australian Equities Alpha Fund, the Deutsche Core Australian Equities Fund and the Deutsche Australian Small Companies Fund, as well as segregated mandates in all three products.

For further information please contact:

Stuart Jordan Bruce Murphy
Small Companies team Retail Distribution
Tel: (02) 9249 9541 Tel: (02) 9249 9096
  
Kristin Silva/Ainsley Gee 
Corporate Communications 
Tel: (02) 9249 9568 / (02) 9249 9904 

Important Information

Issued by Deutsche Asset Management (Australia) Limited ABN 11 076 098 596 (“DeAM”), licensed dealer in securities. The Deutsche Australian Small Companies Fund ARSN 104 027 072 is a registered managed investment scheme managed by DeAM. This is not an offer of securities. Investments in the Fund can only be made by completing an application form. The repayment and performance of an investment is not guaranteed by Deutsche Bank AG (ABN 13 064 165 162), any of its related bodies corporate or any other person or organisation.