The Fund fell 1.9% in September, underperforming the Small Industrials by 1.2% and underperforming the Small Ordinaries by 5.3%. For the 12 months to September, the Fund was up 21.4%, outperforming the Small Industrials by 8.5% and underperforming the Small Ordinaries by 0.1%. The dramatic difference in performance compared to the Small Ordinaries is due to the presence of gold stocks in that index, which we do not invest in.
Senior Fund Manager
Senior Fund Manager
The Pengana Emerging Companies Fund combines the skills of highly experienced small company investors (collectively over 45 years’ experience) with a limited fund size and an objective of providing above market returns over the medium term. Our benchmark is the S&P/ASX Small Ordinaries Accumulation Index. The fund managers Steve Black and Ed Prendergast are part owners of the business and investors in the Fund, providing a strong incentive to perform. The Fund has strong research ratings from all major research houses and over the period since its inception has delivered returns well above benchmark.
1. Net performance figures are shown after all fees and expenses, and assume reinvestment of distributions. 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 1 November 2004.
* For further information regarding fees please see the PDS available on our website.
** The Fund does not invest in resource stocks.
COMMENTARY
Markets globally were firm in September, with the US index up 3.5% driven primarily by the tech sector – NASDAQ rose 5.6%. US bonds rallied as the expectation of interest rate cuts increased after softer economic data releases. The gold price continued its rise, up another 10% in the month, taking this year’s gains to 46%.
The Australian index fell 1.4%, which is in contrast to the US market, and reflects increased doubt over the rate of domestic rate cuts. Not surprisingly, the gold sector was the strongest, rallying 25% following a 20% rally in August. This sector has risen 126% so far in 2025, and while our Fund does not invest in resource stocks, our holdings in service providers, such as ALS Group and Imdex, have contributed strongly (up 44% and 56%, respectively, this year).
Our positive contributors in September included:
Betmakers (+26%) rallied further following its impressive full year result in August, showing 11% revenue growth and a return to profits. RPM Global (+22%) received a takeover offer, which was approved by the board. Aussie Broadband (+12%) rose as the market further digests the recent strong growth and improved outlook. Imdex (+12%) is partially leveraged to gold exploration expenditure, which is likely to firm in response to the commodity price strength. Catapult (+10%) rose in the absence of any company specific news.
Our negative contributors in September included:
Regis Healthcare (-21%) saw its underlying earnings affected by a slight alteration in funding from the government on specific lines of care. Netwealth (-14%) and HUB 24 (-7%) drifted in the absence of stock specific news, noting both had bounced very strongly from April lows, hence a correction of sorts is not a surprise. Breville (-11%) and Car Group (-8%) faded on mild fears of a drop in US consumer activity, which might affect appliance and auto volumes.