SGH Property Income Fund
An actively managed portfolio providing diversified exposure to Australian property and infrastructure assets by primarily investing in Australian real estate investment trusts (AREITs) that typically derive the bulk of their earnings from rental property earnings. It aims to provide greater diversification than the underlying index by limiting the maximum weighting to any security to 15%.
At a Glance
At a Glance
SG Hiscock’s investment approach is based on a disciplined valuation methodology with regard for the fundamental outlook. We use quantitative value inputs (ranked in our proprietary value model) combined with judgemental analysis of fundamental factors and market sentiment. In essence, this means the portfolios will generally show value characteristics but because of the fundamental overlays, these will rarely be extreme.
As a rule, AREITs derive the bulk of their income from rental property income. The fund generally seeks to invest in AREITs that exhibit an above-average proportion of their income sourced from rents rather than more volatile income streams such as third-party construction or development. As a result of this strategy, the fund’s investment portfolio has very different weights to that of the S&P/ASX300 AREIT Index.
Key beliefs that underpin our investment approach include:
- Prices move towards fair value over time
- A ‘property-like view’ is essential for correct valuation
- A low turnover approach is consistent with direct property
- A bottom-up approach captures valuation inefficiencies
- On-the-ground research is critical in gaining true insights
- REITs with superior fundamentals tend to outperform
This fund’s investment universe is primarily securities listed on the ASX. These may include, REITs; companies engaged in property investment, management, development or construction; and securities which invest in infrastructure assets and other similar assets. The fund will hold a minimum of 10 securities in its portfolio, with no one security making up more than 15% of the portfolio. Portfolio construction guidelines include limits to the fund’s exposure to any one company or security.
The fund has maximum allocations to:
- Cash of 20%
- Real estate management, development & infrastructure assets of 15%
- Global securities of 20%
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.