SGH Medical Technology Fund

To provide long-term capital growth by investing in a portfolio of medical technology companies where innovation plays a crucial role in improving global health and economic outcomes. This includes biotechnology, pharmaceuticals, medical devices & equipment, medical data, information technology (e-health) and robotics.

The Investment Manager seeks to achieve long-term capital growth by focusing stock selection on:

1. Share valuation
2. Company management and industry structure
3. Behavioural factors to determine investment-timing
   

It is intended that the investment portfolio will consist of 40 to 60 companies split between:

Mature Growth – companies that have established medical products, generate revenue and are profitable. Typically, the medical technology is hard to disrupt or replicate and has a leading market position, e.g. CSL Limited.

Developing Growth - companies that have disruptive intellectual property in the medical technology space. Typically, these companies are in late-stage clinical trials or have registered or approved medical products,  growing market access, and early-stage revenue.

Seed – companies that are involved in drug discovery, clinical trials or disruptive medical technology, e.g., start-ups. Typically, these are fast-growing and highly innovative companies with exponential growth potential from successful medical product commercialisation.

Unlisted and pre-Initial Public Offering (IPO) companies – these companies will typically reside in the “Seed” and “Developing Growth” stage of their life-cycle as defined above.

Investment guidelines

• The Fund will invest predominantly in medical technology companies and securities listed on the Australian Securities Exchange (ASX).
• No more than 30% of the portfolio to be invested in international companies.
• Unlisted companies & pre-IPO companies with maximum portfolio exposure of 20%.
• Minimum number of stocks 40 (no maximum limit).
• Maximum cash holding of 20%.
• No more than 10% of the market value of the portfolio to be held in any company.
• No more than 10% of a company’s issued capital.
• The Fund is not permitted to be geared or deal in derivatives.
• The Fund can borrow up to 5% of NAV to meet redemption requests).

The Investment Manager is a signatory to The UN-supported Principles for Responsible Investment (PRI) and has a formal Board endorsed environmental, social, and governance (“ESG”) policy.

This incorporates the guidelines from the Australian Council of Superannuation Investors and the framework provided under the Principles for Responsible Investment.

SGH regards itself as a responsible investor and takes an active approach to integrating and embedding ESG considerations into its investment decision-making process and engaging with company boards and management on ESG issues.

SGH believes effective governance structures and processes help reduce risk, provide insight into the company’s culture and intangible assets, and ultimately reflect a company’s intrinsic value over the long term. 

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Equity Trustees Limited (ABN 46 004 031 298, AFSL 240975), a subsidiary of EQT Holdings Limited (ABN 22 607 797 615) a publicly listed company on the Australian Securities Exchange (ASX:EQT), is the Responsible Entity of the Fund. SG Hiscock & Company (ABN 51 097 263 628 AFSL 240679) is the Investment Manager of the Fund and has prepared this information for general information purposes only. It does not contain investment recommendations nor provide investment advice. Neither SG Hiscock & Company Limited, Equity Trustees Limited nor its related entities, directors or officers guarantees the performance of, or the repayment of capital or income invested in the Fund. Past performance is not necessarily indicative of future performance. Professional investment advice can help you determine your tolerance to risk as well as your need to attain a particular return on your investment. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any particular person. You should not act in reliance on the information contained in this document. We strongly encourage you to obtain detailed professional advice and to read the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD) in full before making an investment decision. Equity Trustees Limited does not express any view about the accuracy or completeness of information that is not prepared by Equity Trustees Limited and no liability is accepted for any errors it may contain. Investors can acquire units by completing the application form accompanying a current PDS or, where available by making an application through the mFund settlement service (mFund) by placing a buy order for units with your licensed broker. A current PDS and Target Market Determination are available at www.sghiscock.com.au or can be obtained by contacting SG Hiscock & Company on 03 9612 4600 or 1300 555 511.