Volatility has been the underlying theme in markets of recent times. Within that volatility there are always a few managers that are able to shine. We’d like to make note of the SGH Emerging Companies Fund which has been a star in our portfolio. In June they delivered 5.13% after fees and in the last 3 months well over 40%! We took a view in early April that we should increase our exposure to this fund and added to our position which has proved a great move. With strong average returns for the last 7 years, we thank the team for their hard work and look forward to many more years of good returns.
The SGH Emerging Companies 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.
We like the microcap exposure that this fund continues to provide our portfolio with.
How do we invest at Forrest Private Wealth?
We’re always asked about how we manage money. We have a number of portfolios that we actively manage using separately managed accounts. We currently use Macquarie’s infrastructure to manage this for our clients and we have a stringent internal process for selecting and managing investments. Our investments involve employing some of Australia’ best specialist fund managers across domestic equities, international equities, infrastructure and money markets to invest directly into the markets they specialise in.