SG Hiscock Property Income Fund

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/100045-2022-03-09-17:45.pdf
FUND MANAGER SG Hiscock & Company
ASX Code
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.
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
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:

  • Access to the expertise of a specialist investment boutique structure with an experienced and award winning dedicated A-REIT team.
  • Active management aimed at maximising potential for superior risk adjusted returns over the medium and longer term.
  • Greater liquidity than investing directly in property as can be traded on-market at any time.
  • At the date of the PDS, the S&P/ASX 300 A-REIT Index is highly concentrated by a group of the largest A-REIT's by market capitalisation. The Fund aims to offer investors a more diversified A-REIT portfolio than the S&P/ASX 300 A-REIT Index. Investors get the benefit of greater diversification by investing in the Fund as the maximum weighting of any security in this portfolio is 15%.
  • Regular reporting to keep you up to date on your investments.

Risk level


Investor suitability

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.




Key Features

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%.

Investment strategy

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


How we invest your money

Investment guidelines

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:

  • A-REITs: 80%-100%
  • Global Real Estate Securities: 0%-20%
  • Real estate management, development & infrastructure securities: 0%-15%
  • Cash: 0%-20%

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.