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
||Alibaba Group||China||Information Technology|
||Bharti Infratel||India||Communication Services|
||Charter Communications Inc||United States||Communication Services|
||Dollar Tree Inc||United States||Consumer Discretionary|
||Houlihan Lokey Inc||United States||Financials|
||Medtronic||United States||Health Care|
||Mowi ASA||Norway||Consumer Staples|
||Tencent Holdings||China||Communication Services|
||Thermo Fisher Scientific||United States||Health Care|
||UnitedHealth Group Inc||United States||Health Care|
|1 Month||1 Year||SINCE INCEPTION P.A.2|
|VOLATILITY3||12.6%||NUMBER OF STOCKS||34|
|BETA (USING DAILY RETURNS)4||0.47||MAXIMUM DRAW DOWN||-47.4%|
CIO & Portfolio Manager
Deputy Portfolio Manager & Analyst
Pengana International Equities Limited provides access to the benefits of an actively managed core portfolio of 30-50 ethically screened companies across developed and developing global markets via a listed investment company structure. Investments are made predominantly in companies that deliver stable yet growing free cash flow throughout cycles (which we classify as ‘Core’ holdings) whilst also taking positions in more cyclical companies (‘Cyclical’) and those whose valuation has been materially misconstrued by the market (‘Opportunistic’). We avoid investments in companies that in our opinion are harmful to people, animals or the environment.
|Alpha Israel Fund||International Fund||High Conviction Property Securities Fund||Australian Equities Fund|
|International Fund - Ethical||Global Small Companies Fund||WHEB Sustainable Impact Fund||Emerging Companies Fund|
|High Conviction Equities Fund||Australian Equities Income Fund||Pengana International Equities Limited (ASX: PIA)||International Fund - Ethical Opportunity|
|Private Equity Trust (ASX: PE1)|
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 inception in the table above refers to the movement in net assets per share since the inception of PIA in March 2004.
3. Annualised Standard Deviation since inception
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$.