The Fund fell 3% in the month of September, in line with the global equity market.
The market appears to be concerned about inflation risks from supply-side issues and rising rates as Central Bank stimulus is removed. This would normally see bond rates up and long-duration assets down. However, the market is also growing concerned about growth in 2022 as Government stimulus winds down. As energy prices surge some are considering the risk of stagflation.
Globally, developed market household balance sheets are very strong and employment is rebounding. We are positioning for a rebound in demand for services and events that suffered from Covid 19, and whose share prices are still below pre-Covid-19 levels. We are buying stocks that can pass on price rises to their customers, albeit this may lag a few quarters. We also have a mix of stocks whose medium to long-term growth should be validated when nearer-term milestones are hit. Fundamentally, we are invested in stocks whose intrinsic value is much higher.
||Dave & Buster's Entertainment||United States||Consumer Discretionary|
||Lamb Weston Holdings Inc||United States||Consumer Staples|
||Renesas Electronics Corp||Japan||Information Technology|
||Telix Pharmaceuticals Ltd||Australia||Health Care|
|1 MTH||1 YEAR||2 YEARS P.A.||3 YEARS P.A.||5 YEARS P.A.||SINCE INCEPTION P.A.|
|High Conviction Equities Fund Class A||-3.0%||31.3%||17.7%||13.2%||11.0%||30.8%|
|MSCI All Country World Total Return Index in AUD||-3.0%||27.8%||15.2%||13.2%||15.1%||13.0%|
|RBA Cash Rate plus 3% p.a.||0.3%||3.1%||3.3%||3.7%||4.0%||4.3%|
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|VOLATILITY3||25.3%||NUMBER OF STOCKS||20|
|BETA (USING DAILY RETURNS)4||0.59||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||Axiom International Ethical Fund (Hedged)||Australian Equities Fund|
|High Conviction Property Securities 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 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. 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.