Themes US Small Cap Cash Flow Champions Mutual Fund (SMCF)

Overview

The index is a financial instrument designed to track the performance of small capitalization U.S. companies that demonstrate a high cash flow yield. This market capitalization weighted index is adjusted for free-float, ensuring that only the share portions available for public trading are considered. By focusing on small cap companies with significant cash flow yields, the index aims to provide investors with a targeted investment opportunity that might yield potential returns in the dynamic segment of the market. The index's approach reflects a strategy that values liquidity and profitability among smaller companies, offering a unique angle for investment portfolios.

Products and Services

• Investment in Small Capitalization U.S. Companies:

  The fund commits at least 80% of its net assets, along with any borrowed funds for investment purposes, to securities that form part of the index. This focus on small cap U.S. companies with high cash flow yields allows investors to potentially benefit from the growth and profitability of these firms. By investing in these companies, the fund aims to capture the dynamic nature and potential higher growth rates associated with small cap entities, compared to their larger counterparts.

• Market Capitalization Weighted Index:

  The index uses a market capitalization weighted methodology, adjusted to account for free-float, ensuring that it represents a true snapshot of the market segment it aims to cover. This method weighs companies according to their market value, adjusted for free-floating shares, giving more importance to larger companies within the small cap spectrum. This weighting strategy is designed to reflect the performance of small cap companies in a manner that is proportional to their size and influence.

• Non-Diversified Fund Strategy:

  As a non-diversified fund, the investment strategy allows for a concentrated investment in a smaller number of securities than a diversified fund. This approach has the potential to increase the fund's exposure to specific investments and possibly the reward, but also increases the risk. The non-diversified status of the fund may appeal to investors looking for targeted exposure to small cap U.S. companies with high cash flow yields, acknowledging the trade-off between risk and potential return.