SGH Australian Small Companies Fund

The SGH Australian Small Companies Fund seeks to invest in high-quality companies with dominant leading market positions that generate strong cash flows and high returns on equity, and are better positioned to reinvest through the cycle, compound earnings, and/or pay dividends.

Before making a decision about whether to make an investment in the Fund, please read the Fund’s Target Market Determination (TMD) and Product Disclosure Statement (PDS)(including all incorporated information) to ensure the features of the Fund as described in the TMD and PDS aligns with your objectives, financial situation and needs.

Monthly Fact Sheet
How to invest

Shawn Lee: SGH Australian Small Companies Fund March 2024 Quarterly Update

Investment strategy

The Fund utilises SGH’s proven investment philosophy and approach to invest primarily in a concentrated portfolio of mainly Australian (primarily outside of the S&P/ASX 100 Index) and New Zealand listed companies that have the potential for capital growth and increased earning potential.

SGH seeks to identify and invest in quality Australian and New Zealand listed securities through first hand company visits. Quality is chiefly an evaluation of a company’s management, balance sheet and business model.

Only those companies which pass SGH’s rigorous quality screen are considered for portfolio inclusion. We see risk in terms of investing in a poor quality company, or overpaying for a good one, and do not view risk in benchmark relative terms.

SGH therefore downplay benchmarks in portfolio construction since these provide little indication of future performance. SGH is comfortable not holding companies if they do not satisfy its disciplined quality and valuation criteria, regardless of their benchmark weight.

The normal characteristics of the Fund include:

• Little reference to the benchmark.
• Low cash allocation (as the aim is to be fully invested in securities).