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High Conviction Property Securities Fund

A high conviction A-REIT fund with an ESG focus

VIEW Fund

April 2025 - Monthly REPORT

AREITs - A safe haven amongst global uncertainties

SUMMARY

The Fund delivered strong performance for the month, up +6.7% compared to the benchmark of +6.3%. Key drivers of outperformance came from our exposures to residential names such as Stockland (SGP +12.04%), Aspen Group (APZ +10.75%) and Mirvac Group (MGR +9.09%).

We recently recorded an investor update in which Fund Manager Amy Pham shared how the Pengana High Conviction Property Securities Fund is navigating market cycles, covering performance, outlook, key holdings, and investor questions.

PORTFOLIO

Top Holdings (alphabetically)

Cedar Woods Properties Limited
Australia
Real Estate
Cedar Woods Properties Ltd. engages in property investment and development. The firm's principal interests are in urban land and built form development for residential, industrial and commercial purposes. Its projects include St. A in St Albans, Jackson Green in Clayton South, Williams Landing, Bushmead, Harrisdale Green, Ellendale, and Glenside. The company was founded by William George Hames and Ross James Neumann in 1987 and is headquartered in West Perth, Australia.
Goodman Group
Australia
Real Estate
Goodman Group is an integrated industrial property group. The Group has operations in Australia, New Zealand, UK, Asia and Europe. Goodman's activities include property investment, funds management, property development and property services. The Group's property portfolio includes business parks, industrial estates, office parks and warehouse/distribution centers.
Mirvac Group
Australia
Real Estate
Mirvac Group is an integrated, diversified Australian property group comprising an investment portfolio and a development business. The Company's investment portfolio, Mirvac Property Trust, invests in and manages office, retail and industrial assets and the development business has exposure to both residential and commercial projects.
Scentre Group
Australia
Real Estate
Scentre Group Limited owns and operates pre-eminent living centre. The Company specializes in the management, development, construction, leasing, and retail solutions. Scentre Group serves customers in Australia.
Stockland
Australia
Real Estate
Stockland is a diversified Australian property group. The Group develops and manages Retail centers, Residential Communities and Retirement Living assets with a focus on regional centers and outer metropolitan. Stockland also owns a portfolio of Office and Industrial assets.

Sector Breakdown

PERFORMANCE

Performance Table

NET PERFORMANCE FOR PERIODS ENDING 30 Apr 2025 1
1 MTH 1 YEAR 2 YEARS P.A. 3 YEARS P.A. SINCE INCEPTION P.A.
High Conviction Property Securities Fund 6.7% 8.9% 16.1% 6.0% 9.3%
S&P/ASX 300 A-REIT (AUD) TR Index 6.3% 8.9% 13.7% 5.1% 5.4%

Swipe horizontally to see all columns

Performance Chart

NET PERFORMANCE SINCE INCEPTION 2

COMMENTARY

Australian Real Estate Investment Trusts (A-REITs) rebounded sharply, fuelled by a significant drop in 10-year bond yields amid increased volatility linked to recent tariff-related developments. A-REITs also outperformed their global counterparts (G-REITs), delivering a return of +7.3% in USD terms versus just +0.4% for GREITs.

Given Australia’s relative stability on the global stage, we believe the outlook for A-REITs is becoming increasingly attractive, especially with the potential for further interest rate cuts on the horizon.

With most Q3 FY25 operating updates now behind us, attention shifts to the upcoming August results season and FY26 guidance as the next key catalyst. We anticipate strong average earnings growth of around 7% across the sector, led by Goodman Group (GMG) and residential names. Recent quarterly updates from residential developers support this view, showing clear recovery in volumes and margins driven by structural tailwinds, such as persistent undersupply and supportive government policy. The portfolio is well placed to capture this recovery in earnings, with 21% of the portfolio exposed to the residential sector.

Growth expectations for GMG in FY26E indicate that the market anticipates a return to stronger performance, following the surprise capital raise and softer-than-usual growth in FY25E. However, this outlook depends on GMG’s execution of its data centre development pipeline.

We remain focused on free cash flow and balance sheet strength, which support the Fund’s objective in delivering capital security, income yield and sustainable growth for investors.

PROFILE

Platform Availability

AMP North, BT Panorama, Centric, Dash, Hub24, Macquarie Wrap, Mason Stevens, Netwealth, Praemium

STATISTICAL DATA

PORTFOLIO SUMMARY
VOLATILITY 3
20.8%
NUMBER OF STOCKS
12
BETA 4
0.73
MAXIMUM DRAW DOWN
-31.4%

FEATURES

  • APIR CODE PCL8246AU
  • REDEMPTION PRICEA$ 1.2681
  • FEES * Management Fee: 0.70%
    Performance Fee: 15%
  • Minimum initial investment A$10,000
  • FUM AT MONTH END A$ 22.11m
  • STRATEGY INCEPTION DATE 11 March 2020
  • BenchmarkS&P/ASX 300 A-REIT Total Return Index

Fund Managers

Amy Pham

Portfolio Manager

Jade Ong

Investment Specialist

Description

A Property Fund focussed on capital security, income yield, and sustainable growth.

The Fund believes each security has an underlying or intrinsic value and that securities become mispriced at times relative to their value and each other.

The Fund seeks to exploit such market inefficiencies by employing an active, value based investment style to capture the underlying cashflows generated from real estate assets and/or real estate businesses.

The Fund believes that responsible investing is important to generate long term sustainable returns. Incorporating ESG factors along-side financial measures provides a complete view of the risk/return characteristics of our property investments.

The Fund is benchmark unaware. All positions are high conviction and assessed on a risk-reward basis, resulting in a concentrated portfolio of 10-20 securities.

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CONTACT INVESTOR SERVICES
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1. Net performance figures are shown after all fees and expenses, and assume reinvestment of distributions. The Fund incepted on March 11th 2020.  Index performance calculations include a complete month’s performance for March 2020.  No allowance has been made for buy/sell spreads. Please refer to the PDS for information regarding risks. Past performance is not a reliable indicator of future performance, the value of investments can go up and down.
2. Inception 11 March 2020.
3. Annualised standard deviation since inception.
4. Relative to S&P/ASX 300 A-REIT TotalReturn Index.
* For further information regarding fees please see the PDS available on our website.