The UBS Australian Small Companies Fund has been successfully investing in great businesses for more than 12 years. Over that period of time the fund's investment process has consistently focused on "quality characteristics" when choosing what companies to invest in. This process has served our investors very well. Fundamental message: Don't buy index in Australian small companies. Consequently, we thought a review of the key lessons learned from the fund's journey of investing in good businesses over that period was in order. We have found that there are eight key factors that time and again consistently distinguish a truly successful business from the also-rans. Today we will start with the first two factors.