Hamish Tadgell

SG Hiscock & Company has launched a new fund that will invest in Australian medical technology companies.

The SGH Medical Technology Fund will have a social impact focus and aims 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.

Rory Hunter, portfolio manager of the Fund, says Australian medical technology is among the best in the world and the Fund will offer investors access to high quality growth companies, both established and start-up.

“Australia’s history of medical breakthroughs includes penicillin, the bionic ear, ultrasounds, spray-on skin, and the cervical cancer vaccine. In addition, there are many research facilities in Australia which are recognised as medical centres of excellence at a global level.

“Investors will also benefit from several tailwinds that are driving innovation and growth in medical research and technology.

“The nature of ageing populations in developed economies has been understood for some time, but we are starting to see the full impact of this demographic trend.  There is ever increasing pressure on healthcare institutions to invest in early intervention and prevention, with research showing that medical care is less effective in improving health outcomes than early intervention strategies.

“The COVID-19 pandemic has added a further layer to this.  We are seeing greater demand for diagnostic testing and healthcare services, and significant government spending to support the industry.  The 2021 Federal Budget included a “patent box” tax break for medical and biotech companies to help encourage research and innovation and we expect further government initiatives to follow this.

“Finally, we believe investors who are interested in social impact investing will find the Fund attractive.  Through its investments in Australian medical technology and innovation, the Fund will actively contribute to the welfare of future generations as well as donating a portion of management fees to Australian medical research and commercialisation.”

The SGH Medical Technology Fund will invest in a mix of established and start-up medical technology companies, listed and unlisted, in Australia and New Zealand.  It will typically hold between 40 and 60 investments.

The Fund will be run by the SGH Emerging Companies Team and will be guided by the SGH Medical Technology Advisory Board, made up of industry leading experts including:

• Brenda Shanahan AO as chair (non-executive director, SG Hiscock & Company; non-executive director, Clinuvel Pharmaceuticals; former chair, St Vincent’s Medical Research Institute; chair, Aitkenhead Centre for Medical Discovery)
• Professor Mark Cook (chair of medicine, St Vincent’s Hospital; chair of medicine, University of Melbourne; state chair, Victoria, Australian and New Zealand Association of Neurologists; director, Graeme Clarke Institute for Biomedical Engineering)
• Sam Lanyon (co-CEO and co-founder, Planet Innovation; executive chair, Lumos Diagnostics).
• Stephen Hiscock (chairman and managing director, SG Hiscock & Company; director, DMP Asset Management)
• Hamish Tadgell (head of research, SG Hiscock & Company; portfolio manager, SGH20)

Additionally, SGH will establish a registered charitable foundation which will be funded by 10% of net revenue from the SGH Medical Technology Fund, including performance fees.

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