https://pengana.com/wp-json/pen/performance?fund_code=PENGVL&date=30/11/2023&aggregation_code=Class%20L
CLOSE
BACK

OUR FUNDS

CORE FUNDS

SMALL CAP FUNDS

SPECIALTY FUNDS

CLOSE

Pengana International Equities Limited (ASX: PIA)

The largest International Ethical LIC on the ASX. Targeting fully franked dividends, paid quarterly.

VIEW PIA WEBSITE

November 2023 - Monthly REPORT

November Report

SHARE PRICE

NTA POST-TAX

NTA PRE-TAX

INVESTMENT PERFORMANCE1

DIVIDEND YIELD2

CONSECUTIVE QUARTERLY DIVIDENDS PAID

1. Investment performance since new mandate adopted 1 July 2017.
2. Dividend yield is based on current displayed share price and dividends declared over the previous 12 months
3. Grossed up yield is based on current displayed share price, dividends declared over the previous 12 months and the tax rate and franking percentage applicable for the most recently declared dividend

SUMMARY

  • Global share markets roared back in November as inflation pressures eased, raising hopes that interest rates in most major economies would not rise further.
  • Falling interest rate expectations boosted growth stocks, with information technology and industrial company shares performing particularly strongly.
  • The Portfolio returned 5.2% in November, outperforming the benchmark which returned 4.4%.

PORTFOLIO

Top Holdings (alphabetically)

Alphabet Inc
United States
Communication Services
Alphabet Inc. operates as a holding company. The Company, through its subsidiaries, provides web-based search, advertisements, maps, software applications, mobile operating systems, consumer content, enterprise solutions, commerce, and hardware products.
Amazon.com Inc
United States
Consumer Discretionary
Amazon.com, Inc. is an online retailer that offers a wide range of products. The Company products include books, music, computers, electronics and numerous other products. Amazon offers personalized shopping services, Web-based credit card payment, and direct shipping to customers. Amazon also operates a cloud platform offering services globally.
AMETEK Inc
United States
Industrials
AMETEK, Inc. is a global manufacturer of electronic instruments and electromechanical devices. The Company manufactures advanced instruments for process, aerospace, power, and industrial markets and is a supplier of electrical interconnects, specialty metals, technical motors and systems, and floor care and specialty motors.
Deere & Co
United States
Industrials
Deere & Company manufactures and distributes a range of agricultural, construction, forestry, and commercial and consumer equipment. The Company supplies replacement parts for its own products and for those of other manufacturers. Deere also provides product and parts financing services. Deere and Company extends its services and products worldwide.
Meta Platforms Inc
United States
Communication Services
Meta Platforms, Inc. operates as a social technology company. The Company builds applications and technologies that help people connect, find communities, and grow businesses. Meta Platform is also involved in advertisements, augmented, and virtual reality.
Microsoft Corp
United States
Information Technology
Microsoft Corporation develops, manufactures, licenses, sells, and supports software products. The Company offers operating system software, server application software, business and consumer applications software, software development tools, and Internet and intranet software. Microsoft also develops video game consoles and digital music entertainment devices.
Schneider Electric SE
France
Industrials
Schneider Electric SE manufactures electrical power products. The Company offers car chargers, home security goods, light switches, access control, sensors, valves, circuit breakers, cables, accessories, signaling devices, fuse, motor starters, and voltage transformers. Schneider Electric serves customers worldwide.
Thermo Fisher Scientific Inc
United States
Health Care
Thermo Fisher Scientific, Inc. manufactures scientific instruments, consumables, and chemicals. The Company offers analytical instruments, laboratory equipment, software, services, consumables, reagents, chemicals, and supplies to pharmaceutical and biotech companies, hospitals and clinical diagnostic labs, universities, research institutions, and government agencies.
UnitedHealth Group Inc
United States
Health Care
UnitedHealth Group Incorporated owns and manages organized health systems. The Company provides employers products and resources to plan and administer employee benefit programs. UnitedHealth serves customers in the United States.
Vertex Pharmaceuticals Inc
United States
Health Care
Vertex Pharmaceuticals Incorporated discovers, develops, and commercializes pharmaceutical products. The Company develops drugs for the treatment of cystic fibrosis, cancer, inflammatory bowel, autoimmune disease, and neurological disorders. Vertex Pharmaceuticals serves healthcare sector worldwide.
See Portfolio Breakdown

Sector Breakdown

Capitalisation Breakdown

Region Breakdown

PERFORMANCE

Performance Table

NET PERFORMANCE FOR PERIODS ENDING 30 Nov 2023 1
1M 1Y 3Y Pengana SI
July 20171
(ASX: PIA) 5.2% 12.5% 2.2% 7.6%
Index2 4.4% 14.1% 10.9% 11.7%

Swipe horizontally to see all columns

COMMENTARY

Market Review

Global share markets rebounded strongly as inflation data eased across major developed economies. This enabled central banks to pause hiking interest rates and investors switched their attention towards lower rates next year. Market sentiment improved further as US-China relations appeared less frosty after Presidents Joe Biden and Xi Jinping met.

All global equity market regions and sectors (except energy) strengthened during November. The month saw a rotation of portfolios into growth stocks as interest rate expectations fell and energy prices dropped further. This particularly boosted the information technology sector, while strength in industrials may be a sign of improving consumer and business sentiment.

Falling oil prices as the US increased output, OPEC+ failed to agree meaningful production cuts and concerns grew about demand from China, weighed on the energy sector. In November stocks fared well across all major markets except China, which again lagged despite an improvement in retail sales and industrial production data.

Portfolio Comment

The Portfolio outperformed the benchmark during November, driven by its strong relative stock performance, especially in health care, communications services, and Europe more generally. The Portfolio’s overweight position in health care (which underperformed the broader market at an index level) and weak stock performance in consumer discretionary were the main detractors from relative returns.

Shares of Netherlands-based payment processing firm Adyen recovered from a sell-off in the previous quarter. This followed the company reiterating its long-term strategy and competitive advantage at its 8 November investor day. The company projected that it would deliver annual revenue growth in the low-to-high 20% range through 2026. This validated the Portfolio’s assessment that Adyen’s technological edge and superior digital payments platform will drive increasing market share in a fast-growing industry. Furthermore, it forecast that from next year it will gradually expand EBITDA margins, which are anticipated to exceed 50% by 2026.

Strong third-quarter earnings results were published by US-based international streaming and production company Netflix and US-based image-sharing and social media platform Pinterest. Both stocks outperformed, driving strong stock performance in the Portfolio’s communication services holdings.

The Portfolio’s stock performance was strongest in Europe, with outperformance particularly strong inside the eurozone. In addition to Adyen, France-based digital automation and energy management group Schneider Electric, and Germany-based multinational software company SAP outperformed upon reporting strong third-quarter earnings results.

Stock performance in the US detracted from relative returns in November. Biopharmaceutical group Vertex Pharmaceutical which focuses on cystic fibrosis treatments underperformed following strong share price gains this year.

As we move into the final month of the calendar year we will look to deliver a ‘year in review’ in early 2024. Please let us know any questions you would like us to cover, either specific to the sector, Portfolio, or any portfolio holdings below.


PROFILE

STATISTICAL DATA (Since Mandated)

PORTFOLIO SUMMARY
VOLATILITY 3
11.2%
NUMBER OF STOCKS
60
BETA 4
0.84

FEATURES

  • ASX CODE PIA
  • FEES Management Fee: 1.23% p.a.
    Performance Fee: 15.38% of any return greater than the Index***
  • INCEPTION DATE 19 March 2004
  • MANDATED 1 July 2017
  • BenchmarkMSCI World Total Return Index, Net Dividend Reinvested, in A$ ("Index")
  • NTA Post Tax ** A$ 1.203
    30/11/2023
  • NTA Pre Tax ** A$ 1.250
    30/11/2023
  • Price Close ** A$ 1.050
  • Shares On Issue ** 257.04m
  • Premium/Discount to pre-tax NTA ** -16%
  • DRP Yes

Portfolio Managers

Peter Baughan

Portfolio Manager

Jingyi Li

Portfolio Manager

Rick Schmidt

Portfolio Manager

Description

Pengana International Equities Limited (trading on the ASX as PIA) is the largest international ethical Listed Investment Company (“LIC”) on the ASX. PIA’s objective is to provide shareholders with capital growth as well as regular, reliable, and fully franked dividends.

The strategy aims to generate superior risk-adjusted returns, through investing in an actively managed portfolio of global companies that meet the investment team’s high-quality and durable growth criteria at reasonable prices. A robust ethical framework provides an added layer of risk mitigation.

These companies are identified through the conduct of fundamental research, with a long-term, global perspective, and must exhibit the following four key investment criteria: competitive advantages, quality management, financial strength, and sustainable growth potential.

EXPLORE OUR FUNDS

Harding Loevner International Fund
Harding Loevner International Fund
Axiom International Fund
Axiom International Fund
Axiom International Fund (Hedged)
Axiom International Fund (Hedged)
Australian Equities Fund
Australian Equities Fund
High Conviction Property Securities Fund
High Conviction Property Securities Fund
Global Small Companies Fund
Global Small Companies Fund
WHEB Sustainable Impact Fund
WHEB Sustainable Impact Fund
Emerging Companies Fund
Emerging Companies Fund
High Conviction Equities Fund
High Conviction Equities Fund
Pengana International Equities Limited (ASX: PIA)
Pengana International Equities Limited (ASX: PIA)
Private Equity Trust (ASX: PE1)
Private Equity Trust (ASX: PE1)
Pengana Global Private Credit Trust (ASX:PCX)
Pengana Global Private Credit Trust (ASX:PCX)
Alpha Israel Fund
Alpha Israel Fund
Pengana Diversified Private Credit Fund
Pengana Diversified Private Credit Fund
CONTACT INVESTOR SERVICES
INVEST NOW

1. As at the last day of last month prior to publishing of this report. Performance figures refer to the movement in net assets per share, reversing out the impact of option exercises and payments of dividends, before tax paid or accrued on realised and unrealised gains. 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 date of PIA: 19 March 2004, new investment team with new mandate adopted: 1 July 2017. Pengana International Equities Limited has been managed under the new investment mandate by the Pengana investment team since 1 July 2017. The performance since mandated in the table above refers to the movement in net assets per share since the new mandate adopted on 1 July 2017.

3. Annualised Standard Deviation since mandated
4. Relative to MSCI World Total Return Index, Net Dividends Reinvested
**As at the last day of last month prior to publishing of this report. The figures are unaudited.
*** Index/MSCI World refers to the MSCI World Total Return Index, Net Dividends Reinvested, in A$.