Melbourne-based boutique manager SG Hiscock has reopened its wholesale small companies fund to wholesale investors after taking it off the market six years ago due to capacity limits.
The EQT SGH Wholesale Small Companies Fund invests in small companies or stocks with a market capitalisation between $100 and $500 million.
The portfolio remained actively managed and open to retail investors in the six years its doors were closed to new wholesale investments.
After a period of underperformance the fund came back with a strong year, boasting returns of 68.79 per cent for the year ended 31 October 2009 and outperforming the S&P/ASX Small Ordinaries Accumulation Index by 4.84 per cent per annum.
A new product disclosure for the fund was issued on 23 October 2009, coinciding with the date the fund was reopened to wholesale investors.
The fund is presently available to wholesale investors through BT Wrap and is currently in discussions with a number of other platforms.
"The fund's strategy going forward is to continue to invest in small companies with a market capitalisation below $500 million because we believe that's where the majority of market pricing inefficiencies lie," SG Hiscock & Company managing director Stephen Hiscock said.
A minimum initial investment amount of $50,000 will apply to all new investments and the management cost charged to unitholders will be 1.179 per cent per annum.
The EQT SGH Wholesale Small Companies Fund is one of three funds SG Hiscock has operating in this space.
