Bell Australian Small Companies Fund receives Recommended rating from Lonsec
Michael Lovett
The Bell Australian Small Companies Fund – Class A (APIR PIM8252AU) has been awarded a Recommended rating by Lonsec Research — the fund’s second Recommended endorsement since the Fund launched mid year.
Lonsec’s review points to a disciplined, repeatable investment process and a portfolio construction and risk management framework built around ensuring active risk is predominantly stock-specific.
“Disciplined and repeatable investment process, with a clear quality and valuation framework suited to the small-cap universe.” (Lonsec Research)
Michael Lovett, Chief Executive Officer of Bell Asset Management, says the latest rating reinforces the credibility of the process .
“Two research houses now recognise the depth of work behind this strategy. That kind of external validation matters, particularly for investors running their own due diligence.”
Portfolio Manager Tim Johnston says the rating reflects the team’s approach to portfolio construction.
“Position sizing reflects quality, valuation, conviction and portfolio fit — and the aim throughout is to make sure what drives performance is genuine stock selection, not unintended exposure to macro or sector moves. It’s good to see that discipline recognised.”
Market context
The rating comes as reporting season data reinforces the team’s investment thesis. Tim Johnston, Portfolio Manager, says small-cap earnings appear close to a cyclical low, with investment-led parts of the economy — resources, infrastructure and electrification — continuing to outperform consumer-facing sectors.
“Approximately 80% of companies met or exceeded expectations this reporting season, and takeover activity across the sector confirms our view that valuations remain modest,” Johnston says. “Investors are starting to recognise the opportunity, and the valuations on offer.”
