May was jam-packed with events that could shake any investor.
We had COVID-19 decline in most of the developed world, but we saw it escalate in the emerging markets, most notably, in Brazil and India. We saw the first real economic data that shows the impact of COVID-19 on developed markets, with COVID-19 starting in late March in most developed markets and showing an impact by May. This was eye-watering economic data, including many all-time low figures.
The other thing we saw was an escalation in the US-China politics. We had the US impose more sanctions on Huawei. And we also saw the US’s very strong response to China’s proposal to implement its law into Hong Kong, which drew widespread protests. Towards the end of the month, we saw the very tragic killing of George Floyd and the protests that ensued.
In this month’s video and written commentary below we hold a lens to our investment process in the face of a market that has become mind-boggling.
We have also been in the news (Click a headline below to read the article):
Australian Financial Review – Pengana global fund to target franked dividends
Sydney Morning Herald – Pengana flags dividends for years amid absolute desperation for yield
Financial Standard – Pengana eyes fully franked dividend
Finally – we are pleased to include a link to our recent webinar where we discuss the latest update to our investment mandate, targetting fully franked dividends for shareholders into the future. Click HERE to watch
|VOLATILITY3||12.6%||NUMBER OF STOCKS||34|
|BETA (USING DAILY RETURNS)4||0.47|
Pengana International Equities Limited (trading on the ASX as PIA) is the largest international ethical Listed Investment Company (“LIC”) on the ASX, that exists 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 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.
|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. 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. 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
**. As at the last day of last month prior to publishing of this report. The figures are unaudited.
***. MSCI World refers to the MSCI World Total Return Index, Net Dividends Reinvested, in A$.