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Fund in Focus

Fund in Focus: The Level 18 Fund

Matthew Kidman

Centennial Asset Management

Small companies can grow faster and deliver better returns than their bigger colleagues. It makes sense that a small company has the ability to disrupt an industry or find a niche that allows it to grow at a faster pace. The enticing nature of this growth though comes with heightened risk, as we experienced earlier this year with the Corona crash when the Australian Small Ordinaries Index fell 41 per cent in less than 5 weeks. We also saw it in the Great Financial Crisis (GFC) when the same index plummeted 63 per cent in 15 months. No small company is too big to fail! 

The Level 18 Fund attempts to capture the great growth opportunities among the small companies listed on the Australian Securities Exchange while limiting the risk taken. 

The managers of the fund, Centennial Asset Management, have a significant portion of their investable capital in the fund and look to avoid experiencing major losses in any given period.

While markets gravitate up over time, and being exposed to the market is the norm, having the flexibility to be fully invested, hold unlimited levels of cash or even short sell stocks, dials down the risk profile. This provides a distinct alternative for investors.

Key points:

  • The number one goal is to preserve capital.
  • Capacity is limited to $150 million with $110 million of funds currently under management.
  • The Level 18 Fund typically invests in small cap companies that can generate sufficient free cashflow to finance their above average growth.
  • Case Study: How City Chic Collective (ASX:CCX) fits the mould of companies that The Level 18 Fund likes to own.
  • An overview of performance with FY20 gross performance of +6.7% vs –7.2% in the All Ordinaries Accumulation Index.
  • Outlook: Why we remain bullish on the Australian equity market 

More information

For more information call 02 8071 9225, email investors@centennialfunds.com.au or visit our website

**The Level 18 Fund is currently open to Wholesale Investors only.

Watch the full fund presentation by clicking on the player below.

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This presentation has been prepared by Centennial Asset Management ACN 605 827 745, AFSL No. 515887 (Centennial). The information in this presentation has been prepared to provide a general overview of The Level 18 Fund (“Level 18”) and is not intended to be a definitive statement on the subject matter. The document is not to be reproduced or distributed to other persons without the written permission of Level 18. It has been prepared solely for informational purposes and is not an offer to invest in Level 18 or its trading strategies. No representation or warranty (express or implied) is made or can be given with respect to the accuracy or completeness of the information in this document and no reliance should be placed upon it. Past performance is not a reliable indicator of future performance. Neither Centennial Asset Management, its associates nor any other persons guarantees the investment performance, earnings or return of capital invested in Centennial Asset Management or any of its funds.

Principal and Portfolio Manager
Centennial Asset Management

Matthew is the Principal and Portfolio Manager at Centennial Asset Management. Prior to this, Matthew was the CIO at Wilson Asset Management between 1998 and 2011, achieving 18% p.a. over the period.

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