SG Hiscock Property Income Fund
About this Fund
|FUND MANAGER||SG Hiscock & Company|
|INVESTMENT STYLE||The Fund invests primarily in Australian real estate investment trusts (AREITs) that typically derive the bulk of their earnings from rental property earnings.|
|INVESTMENT PROFILE||The Fund aims to achieve a dividend yield (before fees) which is higher than the S&P/ASX300 A-REIT Accumulation Index and a total return in excess of the Benchmark.|
|CURRENCY MANAGEMENT||Active management|
|BENCHMARK||CPI + 3% p.a. (before fees) over rolling 5 year periods|
|FUND SIZE||CPI + 3% p.a. (before fees) over rolling 5 year periods|
|NO. OF HOLDINGS||10+|
|FEES||0.95% p.a. (inclusive of GST and RITC) of the NAV of the Fund|
Benefits of investing in the SGH Wholesale Property Income Fund
Benefits of investing in the Fund include:
The Fund is designed for investors who seek an exposure to real property but require greater diversity and liquidity than an investment in direct property. The Fund invests in listed property securities designed to provide strong income and moderate capital growth over the medium to long-term.
About the 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%.
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:
How we invest your money
The Fund will hold a minimum of 10 securities in its portfolio, with no one security making up more than 15% of the NAV of the Fund. It may invest in real estate management, development and infrastructure securities but the total exposure to these stocks will not be more than 15% of the NAV of the Fund. It may invest up to 20% of its portfolio in Global Real Estate Securities. The minimum investment in REITs is 80% and the Fund may also hold up to 20% in cash. The Fund may invest in unlisted investments (if they are due to be listed within three months). However, if the Fund, by virtue of a corporate action or similar event, becomes entitled to an unlisted investment, the Fund may hold the unlisted investment. The Fund is also permitted to use derivatives for currency hedging purposes only. The asset class ranges are as follows:
Due to movements in the market or similar events, the guidelines set out above may not be adhered to from time to time. In these circumstances, the Investment Manager will seek to bring the Fund's investments within the guidelines within a reasonable period of time.