SUMMARY
The Fund fell 0.4% during the month of February, which started strongly but finished weaker as global markets fell due to concerns over rising inflation and bond yields due to the rapid global recovery from the Covid pandemic.
Contributors and detractors
PORTFOLIO
Top Holdings (alphabetically)
Sector Breakdown
Capitalisation Breakdown
Region Breakdown
PERFORMANCE
Performance Table
NET PERFORMANCE FOR PERIODS ENDING 28 Feb 20211
Performance Chart
NET PERFORMANCE SINCE INCEPTION2
COMMENTARY
The Fund fell 0.4% during the month of February, which started strongly but finished weaker as global markets fell due to concerns over rising inflation and bond yields due to the rapid global recovery from the Covid pandemic.
US Vaccine producer Novavax continued to perform well after announcing positive phase 3 clinical results for its Covid vaccine in January.
US property developer Howard Hughes rose 9% on the back of positive earnings results with the company benefitting from a booming US residential property market. Japanese online retailer Rakuten also rose 12% after posting strong online shopping sales but also highlighted that its new telecom network will require a greater than expected Capex to achieve national coverage.
Chinese online auto retailer Autohome also recorded positive results due to strong Chinese auto sales. The company is currently listed in the USA but plans a Hong Kong listing in March which should make it easier for Chinese citizens to invest in a well-known local company.
On the negative side, Australian cancer immunotherapy producer Immutep fell 15% on little news. We like the company, which now has a market value of AUD200mln with AUD80mln of cash, due to recently reported positive results in lung, breast, and head and neck cancer, with more data expected over the next 12 months.
Austrian semiconductor producer AMS fell 15% after reports that Apple may reduce its future business with the company. We exited the holding.
German Solar inverter producer SMA Solar fell 11% after hosting a capital markets day, which highlighted a strong market outlook, however profit margin expectations appeared disappointing especially when considering the company has much lower margins than US competitors Enphase and SolarEdge.
Australian molecular diagnostic producer Genetic Signatures fell 9% on little news.
PROFILE
Platform Availability
- Hub24
- Macquarie Wrap
- Mason Stevens
- Netwealth
STATISTICAL DATA
PORTFOLIO SUMMARY
VOLATILITY3
26.1%
NUMBER OF STOCKS
18
BETA4
0.59
MAXIMUM DRAW DOWN
-20.2%
FEATURES
- APIR CODE HHA0020AU
- REDEMPTION PRICEA$ 2.843
-
FEES *
Management Fee: 1.80% p.a. (Class A) | 1.25% p.a. (Class B)
Performance Fee: 15.38% (Class A) | 20% (Class B) - Minimum initial investment A$10,000
- FUM AT MONTH END A$ 33.24m
- STRATEGY INCEPTION DATE 11 December 2014
- BenchmarkRBA Cash Rate + 3%
Fund Managers
James McDonald
Portfolio Manager
Jeremy Bendeich
Portfolio Manager
Description
The Pengana High Conviction Equities Fund (the Fund) invests globally in a concentrated portfolio of up to 20 stocks. The Fund can invest in both small and large cap stocks and is diversified across countries and sectors. We avoid investment in companies that are currently, in our opinion, unnecessarily harmful to people, animals or the environment.
EXPLORE OUR FUNDS
1. Net performance figures are shown are those of Class A Units, 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 11 December 2014.
3. Annualised standard deviation since inception.
4. Relative to MSCI World. Using daily returns.
* For further information regarding fees please see the PDS available on our website.