H&G High Conviction
A Fund with a focus on risk adjusted returns
An Offer to raise up to A$20M through the issue of fully paid ordinary shares in H&G High Conviction Limited, with the ability to accept oversubscriptions of up to A$10M.
Offer Closes 30th September 2022
H&G High Conviction Limited is a microcap (sub $300m market cap) value investor backed by an experienced team where the portfolio manager and their family have significant “skin in the game”.
The Company is targeting an attractive investment performance of at least 10% per annum (after all fees).
The Company’s predecessor, H&G High Conviction Fund, returned 13.3% after all fees in FY22 (compared to the ASX Small Ordinaries Accumulation Index’s –18.2%).
Benefits for Shareholders
- A highly experienced active Manager with deep knowledge of Australian equities;
- A concentrated portfolio of 20 to 25 investments in ASX-listed micro capitalisation companies (market caps under $300M at investment);
- An actively managed, fundamentals-based investment approach focusing on capital preservation, long-term capital growth and income;
- Targeting attractive double-digit long-term per annum investment performance after fees;
- An Investment Team and Board with experience in funds management, listed equities, alternative assets and corporate governance; and
- The benefits of the LIC structure providing investors with liquidity, experienced corporate governance and ability to pay fully franked dividends.
H&G Conviction fund performance to June 2022 v ASX Small Ordinaries Index
H&G Conviction fund portfolio mix as at June 2022
H&G High Conviction Fund
- Investment manager: H&G Investment Management Ltd
- Fund size (gross assets): A$18m
- Fund type: Listed Investment Company
- Management fee: 1% plus GST p.a.
- Performance fee: 20% of benchmark outperformance, with a high-water mark, paid semi-annually
- Benchmark: 5% p.a.
About the High Conviction Fund
In June 2022, H&G High Conviction Limited was formed and acquired its initial investment portfolio of cash and ASX-listed securities in exchange for shares in H&G High Conviction Limited.
Approximately 75% in value of the initial investment portfolio was acquired from the H&G High Conviction Fund. The H&G High Conviction Fund was launched in November 2007 by the Manager (then named ‘Supervised Investments Australia Limited’).
H&G Investment Management Ltd has been the investment manager of the H&G High Conviction Fund since its inception and over this period has adopted a fundamentals-based investment strategy focused on investment in micro capitalisation companies, which is consistent with the company’s investment strategy.
- High Conviction Fund Presentation H&G High Conviction Limited IPO Presentation
- H&G High Conviction Limited Prospectus (subject to the disclaimer on the HCF website – www.highconviction.com.au)
- Target Market Determination (TMD)