During the month of June the fund fell 2.9%1. New COVID cases are accelerating again in the US and many emerging markets. Interestingly the number of daily deaths has so far not greatly increased in the USA possibly due to a younger demographic being infected and better drugs such as Gilead’s Remdesivir which is a cause for optimism. Economic stimulus does seem to be having its desired effect with economic indicators broadly improving although it is possible that economies will weaken again when stimulus tapers off in the second half of the year. We are cautiously optimistic that new targeted COVID antibody treatments from companies such as Regeneron and Pfizer will be available by year-end and vaccines will be ready for mass deployment in the first half of 2021.
In this month’s full commentary (below) we look into the performance of a selection of holdings in the fund.
We are happy to announce that as of 15 July 2020, the Fund’s objective will be updated to: deliver returns that exceed both the MSCI All Country World Total Return Index (net, AUD), and the RBA Cash Rate target +3%. This update will be concurrent with the opening of an additional Unit and Fee class that will be available to investors. The new unit class (“Class B”) will have a management fee of 1.25% (incl GST/RITC), with a performance fee of 20% above the MSCI world total return index (Net AUD) with a high watermark.
||Bavarian Nordic||Denmark||Health Care|
||Genetic Signatures Limited||Australia||Health Care|
||Lumentum||United States||Information Technology|
||Telix Pharmaceuticals Ltd||Australia||Health Care|
|1 Month||1 Year||2 Years P.A.||3 Years P.A.||SINCE INCEPTION|
|RBA Cash Rate + 3%||0.3%||3.7%||4.1%||4.2%||4.5%|
|VOLATILITY3||27%||NUMBER OF STOCKS||18|
|BETA (USING DAILY RETURNS)4||0.63||MAXIMUM DRAW DOWN||-20.2%|
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.
|Harding Loevner International Fund||Axiom International Ethical Fund (Hedged)||Axiom International Ethical Fund||High Conviction Property Securities Fund|
|Australian Equities Fund||Global Small Companies Fund||WHEB Sustainable Impact Fund||Emerging Companies Fund|
|High Conviction Equities Fund||Pengana International Equities Limited (ASX: PIA)||Private Equity Trust (ASX: PE1)||Alpha Israel Fund|
1. Net performance figures are shown after all fees and expenses and assume reinvestment of distributions. 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.