This fund is designed to provide medium to long-term capital growth, by primarily investing in companies that have a market capitalisation of less than $500M at the time of purchase. This may include resource exploration companies, early stage bio-technology companies and technology start-ups.

SG Hiscock’s investment philosophy is based on the belief that the market incorrectly prices emerging companies due to agency factors and institutional liquidly constraints. Their investment approach is style neutral and is based on a three-stage value-active investment process which takes into account fundamental security analysis, qualitative assessment of company management and industry structure, and technical analysis.

It is the managers belief that there are more stock selection opportunities, less fund manager competition, and better prospects for growth in companies with market capitalisation of less than $500M. Further, they have found there is significantly greater deal flow in emerging companies in the form of initial public offerings (IPOs), institutional share placements and merger & acquisition activity, providing increased outperformance potential through active management.

SG Hiscock will use the following guidelines when selecting investments for the fund: A minimum of 20 stocks, a maximum cash allocation of 20%, up to 20% of the fund’s net assets can be invested in unlisted companies, up to 30% of the fund’s net assets can be in companies whose market capitalisations have grown above $500M after they were first purchased, maximum portfolio exposure to any individual company is 10%.