SGH Australia Plus
A high conviction Australian equity fund that primarily invests in ASX listed stocks with the option to allocate up to 20% of the portfolio in Asian stocks
At a Glance
Our strategy is to only allocate capital to high-quality ideas where we have conviction. Our focus is on identifying businesses with a competitive advantage that are well-positioned in attractive end markets to grow free cash flow, at an acceptable margin of safety to valuation. This is done through a rigorous, repeatable and disciplined quality assessment of company’s earnings, business and management. As part of this we undertake an extensive company visitation program which is important in providing ‘insight’, testing our thinking and developing our highest conviction ideas. We seek to know as much about our companies as possible, with a view to mitigating permanent capital loss and delivering outperformance over the long term. We feel that investors can appropriately diversify their portfolio and enhance returns by accessing the domestic demand thematic within Asia. Looking selectively at rising middle-class incomes in Asia, we have identified an appropriate universe of 40-50 consumer-facing stocks listed on Asian exchanges that we feel may be suitable for the portfolio at the right price.
SGH Australia Plus is a benchmark unaware fund that can hold between 25-40 stocks with a maximum of 10 Asian securities (making up no more than 20% of the fund). The fund will also have a large/mid cap bias, with a maximum of 25% of the fund held in small caps (defined as stocks below AUD1.5bn in market cap). The maximum portfolio weight in a large/mid cap company is 8% and in a small cap company is 4%. The fund can also hold up to 20% in cash.
Performance as at 31 March 2017. Powered by data from Financial Express. For funds with less than 5 yrs performance history, refer to fact sheet for since inception returns.
Funds Distribution team
The retail distribution and marketing for our funds was transitioned in-house in February 2016. As a result of this we welcomed an experienced team from Equity Trustees, bringing with them expertise in dealing with Financial Advisers, platforms and researchers. Our team of industry professionals have extensive knowledge and resources to support you and your clients with tailored investment solutions. Contact them today to discuss our funds in more detail.