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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Stephen Hiscock

SG Hiscock & Company (SGH) and DMP Asset Management (DMPAM) have agreed to a merger of the two businesses, forming an investment management organisation with substantial experience and strength of personnel, based in Melbourne.

The merger, which will be finalised by the end of March 2019, brings together two long-standing, quality businesses with shared cultures and complementary strengths in investment management, research capabilities and private client portfolios.

Both businesses will retain their separate Australian Financial Services Licences and brands following the merger to ensure a clear focus on the two pillars of business within the merged entity, namely Institutional mandates and retail unit trusts (SGH) and wholesale tailored portfolio services (DMPAM).

Angus Graham, CEO of DMP Asset Management, says that the merger combines two complementary businesses with a shared focus on client service.

“Most importantly, the merger of SGH and DMPAM makes sense for our clients. The depth and breadth of knowledge and experience of the two teams increases the bench strength significantly. The merged entity combines the strength of SGH’s & DMPAM’s investment performance and research capability, with DMPAM’s long history in managing bespoke private client portfolios – including some clients that have been with the firm for over 28 years.

“The business will retain its focus on providing funds management, asset allocation and portfolio construction solutions to wholesale clients.”

SGH chair, Stephen Hiscock, said the merger will further strengthen the investment capabilities of both businesses, to the benefit of clients.

“We believe it is timely to strengthen both businesses through a merger to form a larger entity, whilst maintaining the strength of independence from outside financial institutions” he said.

“Both DMPAM and SGH have a long track record and culture of client focus.  From our clients’ point of view, it is business as usual.

Following the merger, Mr Hiscock will join the DMPAM board while Mr Harry Cator and Mrs Brenda Shanahan PhD from DMPAM will join the SGH board.

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