Having launched back in 2001, the SGH Emerging Companies Fund has a long-established track record investing in smaller companies and as such, has received a five out of five crown rating by FE.
It’s managed by Adrian Di Mattina who joined SG Hiscock from NAM and has 28 years’ experience in the investment industry across both equities and fixed interest.
The fund aims to provide long-term capital growth over three and five years and seeks to outperform its benchmark of the S&P ASX Emerging Companies index, but notes suitable investors should have a five-year time horizon. It sits in ACS Equity-Australia Small/Mid Cap sector, one of 97 constituents and has consistently outperformed over one, three and five years against its peers. It has met these objectives from its product disclosure statement (PDS) more than satisfactorily, meaning it passes Fact Check.
The fund has returned more than double the sector average over five years to 13 May 2019 with annualised returns of 20.7 per cent, according to FE Analytics, compared to average returns of 9.5 per cent by the sector. This makes it not only top quartile but also the top fund in its sector.
Chart 1: Total return over five years of the fund compared to the ACS Equity- Australia Small/Mid Cap sector and S&P ASX Small Ordinaries index