Founder & CEO
Founder & Managing Partner
Managing Partner
Managing Partner
The Pengana Alpha Israel Fund invests in listed Israeli companies that produce cutting edge – both high and low tech – technologies. These Israeli listed companies have developed solid intellectual property coupled with strong global distribution.
The Fund offers Australian investors diversification within global equity exposure to a unique and promising market that is very much skewed to industries and technologies that are either limited, or do not exist, in the Australian market place, such as: the semiconductor industry, solar and water treatment technology, aerospace and electronic defence industries, and cyber security technologies.
i.Net performance figures are shown after all fees and expenses, and assume reinvestment of distributions. Performance figures are calculated using net asset values after all fees and expenses, and assume reinvestment of distributions. Index returns shown are in ILS (Israeli Shekel). 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 and may not be repeated, the value of investments can go up and down.
^. Inception 1st January 2018.
* Performance for periods greater than 12 months are annualised. Net performance figures are shown after all fees and expenses, and assume reinvestment of distributions. No allowance has been made for buy/sell spreads. Past performance is not a reliable indicator of future performance, the value of investments can go up and down.
1. Inception date 1 January 2018. Performance shown is the continuous performance of both the current and previous strategies.
2. Prior to February 2025 performance has been simulated by Pengana from the monthly gross returns of the Alpha Long Equities Fund denominated in ILS. The simulation was done by: hedging currency exposure of the underlying strategy to the base currency of the stated class using three month forward rates; and, applying the fee structure of the stated class. From February 2025 inclusive, performance is of the Pengana Alpha Israel Fund.
3. Index returns shown are in ILS (Israeli Shekel).
Please note: This fund is only open to Wholesale Investors.
COMMENTARY
The largest contributor to Fund performance during January was the Fund’s financials exposure. Shares in the global fintech Nayax rose 27% in January, while those of insurance group Phoenix gained 14%.
Meanwhile, shares in chemicals group ICL jumped 18% after potash and phosphate prices increased upon rising uncertainty regarding tariff levels, as global trade tensions rise.
The largest detractor from relative returns was the Fund’s holding in Teva Pharmaceuticals, the world’s largest generic drug manufacturer. Its shares fell 20% in January after it announced a weaker than expected outlook for 2025 as that it will need to invest heavily in R&D and marketing. However, December quarter earnings were strong and this investment is expected to bring only a temporary drag on cash flow. Hence, the Fund will maintain its holding given the highly attractive valuation level.
Outlook
The Fund continues to take a positive view of Israel’s economic and share market prospects. It stands to benefit from several factors that should aid long-term economic development, which in turn should support corporate earnings growth: