1. The Responsible Entity will make an off-market buy-back offer each calendar quarter to buy-back up to 5% of the PCX issued capital each calendar quarter. The Responsible Entity will only be able to continue to buy-back 5% of the capital each calendar quarter where it would exceed the 10/12 Limit (10% of the smallest number of units that are on issue at any time during the previous 12 months) if the Responsible Entity has obtained approval by ordinary resolution of unitholders prior to effecting the buy-back. It is the Responsible Entity’s intention to seek unitholder approval when required so that it can continue to buy-back 5% of the issued capital each quarter. If the Responsible Entity receives acceptances for more units than 5% of the issued capital of PCX for any quarterly buy-back offer, the number of each acceptor’s units will be subject to a proportional scale-back.
2. The NAV is unaudited. The NAV is net of distributions paid since inception on 21 June 2024 to the date of this announcement.
3. Portfolio breakdowns show the Trust’s percentage ownership in the investments based on the latest available data provided by the underlying funds. Allocations adjusted to reflect investments that have been called but not settled. ‘Cash’ refers to the Trust’s direct and indirect investment exposure to cash and other liquid assets. The Master Classes’ investment exposures under ‘Fund Allocation’ exclude the investment exposure of the Trust to any ‘Cash’ that is held via these Master Classes. The Master Classes are explained in the latest PDS for the Trust.
The Responsible Entity intends to continue to make an off-market equal access buy-back offer to all investors in the Trust on a calendar quarterly basis for 5% of the issued capital of the Trust at the Buy-Back Price. The Buy-Back Price is equal to the sum of: (i) the NAV per unit as at the Buy-Back Pricing Date; and (ii) the amounts of distributions that the unitholder would have been entitled to if the unit was not cancelled from the Buy-Back Cancellation of Units Date up to the Buy-Back Payment Date. The Responsible Entity intends that each round of quarterly buy-back will have at least one calendar quarter between the date required for a Unitholder to elect to participate in the buy-back and its Buy-Back Pricing Date and Buy-Back Payment Date, with specific dates to be made available in future Buy-Back Booklets (subject to the acceptance of the buy-back timetable by the ASX). Please refer to the latest PDS for an explanation of capitalised defined terms and a detailed description of the mechanism.
*Lonsec ratings issued 06/11/2025 are published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2020 Lonsec. All rights reserved.
**SQM Research is an investment research firm that undertakes research on investment products exclusively for its wholesale clients, utilising a proprietary review and star rating system. Information contained in this document attributable to SQM Research must not be used to make an investment decision. The SQM Research rating is valid at the time the report was issued, however it may change at any time. While the information contained in the rating is believed to be reliable, its completeness and accuracy is not guaranteed. The SQM Research star rating system is of a general nature and does not take into account the particular circumstances or needs of any specific person. Only licensed financial advisers may use the SQM Research star rating system in determining whether an investment is appropriate to a person’s particular circumstances or needs. You should read the product disclosure statement and consult a licensed financial adviser before making an investment decision in relation to this investment product. SQM Research receives a fee from the Fund Manager for the research and rating of the managed investment scheme.
For all important information regarding BondAdviser Product Assessments please see the final page of the BondAdviser Fund Report or visit the BondAdviser website.
Pengana Investment Management Limited (ACN 063 081 612, AFSL 219462) (“Pengana”) is the issuer of this document and units in PCX (ARSN 673 024 489).
There are no guarantees that an active trading market with sufficient liquidity will develop or that such a secondary market will sustain a price representative of the NAV per unit. In circumstances where units are suspended from the ASX, unitholders may not be able to sell their units via the ASX until trading recommences.
The information provided in this document is of a general nature only and has been prepared without taking into account your objectives, financial situation or needs. Before making an investment decision in respect of PCX you should access whether PCX is appropriate give your objective, financial situation or needs. None of Pengana, Mercer Consulting (Australia) Pty Ltd, nor any of their related entities, directors, partners or officers guarantees the performance of, or the repayment of capital, or income invested in PCX. An investment in PCX is subject to investment risk including a possible loss of income and principal invested. Past performance is not a reliable indicator of future performance, the value of investments can go up and down.
Authorised by: Paula Ferrao, Company Secretary
COMMENTARY
Delivering on Our Promise: Strong Income, Solid Performance, and a Resilient Portfolio
One year performance: 8.41% comprised of:
PCX listed on 21 June 2024 with the objective of delivering a reliable monthly income and NAV accumulation to investors from a highly diversified global private credit portfolio. The capital raised was fully deployed in the first quarter after listing. Since then, the portfolio has developed a robust track record of performance as the capital deployed into our income-oriented strategies delivered stable monthly income and as our accumulation strategies matured. Consistent with this, we are pleased to announce that the portfolio has performed in line with our expectations, paying steady monthly income that has delivered an annual cash yield to 30 June 2025 of 7.04% and an increase in NAV per unit to $2.03 at 30 June 2025, equating to a one-month return of 2.14% and a one-year return of 8.41% for our investors. These outcomes reflect the disciplined execution of our multi-manager strategy and the growing maturity of the underlying portfolio.
Market Commentary: Stability Amid Global Uncertainty
The global economic landscape remains complex, with elevated uncertainty across trade, fiscal policy, and geopolitics. Recent pauses in new US trade measures have provided temporary relief to equity and fixed income markets. However, longer term implications for inflation, capital investment, and global supply chains remain unclear. Fiscal policy direction in the US, particularly around major spending and tax legislation, continues to raise questions about deficit sustainability and potential implications for bond markets.
In Europe, growth remains constrained by trade headwinds and cautious corporate sentiment, although stabilising inflation and prospective fiscal easing offer some grounds for optimism. Meanwhile, heightened geopolitical tensions in the Middle East continue to impact energy markets and inflation expectations, underscoring the fragility of the global macro environment.
Looking ahead, investor sentiment is likely to remain sensitive to second quarter corporate earnings guidance and further developments on global trade policy. As such, we expect periods of market volatility to persist, driven more by technical positioning and liquidity dynamics than by fundamental credit deterioration.
Against this backdrop, global private credit continues to expand, underpinned by its defensive characteristics: consistent income generation, low correlation to listed markets, and relatively low volatility. We believe these attributes continue to position the asset class, and PCX in particular, as a compelling option for investors seeking resilient income in a structurally uncertain environment.
Portfolio Update
The Trust’s underlying funds continue to perform well with no signs of credit stress or deterioration in credit quality.
Distributions from our Income managers remain stable and are consistent with expectations. This resilience, despite broader market volatility following Liberation Day, underscores the contractual and predictable nature of the underlying loan assets and the strong credit quality of the portfolio. In addition, our Accumulation strategies continue to deliver attractive returns from realised investments and redeployment into quality opportunities. NAV per unit increased to $2.03 at 30 June 2025, reflecting the solid underlying portfolio performance and improved timeliness of income recognition we advised in our May update. In addition, we increased PCX’s distribution for the month of June to 1.3 cents per unit from 1.17 cents per unit in May 2025, a greater than 10% increase.
Portfolio Composition
At 30 June, the Trust has maintained its target allocation mix, with capital diversified across fund types and managers as follows:
The portfolio remains within stated limits across geography, seniority, and investment strategy. Diversification by vintage, style and manager continues to underpin downside protection and liquidity planning.
Outlook: Ongoing Stability and Opportunity
Our managers continue to source and execute on compelling opportunities across their respective mandates. While there are early signs of a pickup in M&A activity, potentially expanding the investable universe, managers remain disciplined and selective in deployment, with a focus on downside protection.
Credit quality across the portfolio remains solid, with no early warning indicators of deterioration. As always, the portfolio is structured to prioritise resilience, with a contractual income base and flexibility to capitalise on market dislocations as they arise.
Going forward, based on the maturity of the Trust, and assuming the performance of underlying investments and the quality of the opportunity set remains in line with current experience,
Our intentions remain subject to change based on realised returns and liquidity needs going forward.
In closing, we reiterate that these outcomes reflect the strength and consistency of the underlying portfolio income, the disciplined execution of our multi-manager strategy, and the growing maturity of the underlying portfolio.
As always, we thank you for your support of PCX.