On May 10th, Pengana announced the appointment of Harding Loevner to manage the Portfolio. Established in 1989, Harding Loevner is a highly regarded global equity manager, responsible for the management of over US$84bn of investments on behalf of some of the world’s largest and most sophisticated investors (including pension funds, sovereign wealth funds, endowments, and family offices). In line with Harding Loevner’s investment strategy, PIA will hold investments in high-quality, growing companies identified through fundamental research with a long-term, global perspective.
In partnering with Harding Loevner, Pengana has identified a highly regarded investment manager with extensive global equity expertise that has generated significant outperformance throughout the strategy’s 32-year track record. We look forward to a long and fruitful relationship with our international equity investors.
Following Harding Loevner’s appointment, the process of transitioning the positions from the old to the new portfolio commenced. This entire process was efficiently executed with minimal direct cost to PIA and was fully completed by month end. It is expected that the realisation of capital gains due to the transition will lead to increased franking credits, supporting the Company’s mandate of paying quarterly fully-franked dividends.
Please find a brief investment commentary for the month of May below, which will be expanded over the coming months now that Harding Loevner has full responsibility for portfolio management decisions. For investors wishing to know more about Harding Loevner’s investment philosophy and process, please see the recent introductory webinar recording HERE.
||Alphabet Inc||United States||Communication Services|
||Amazon||United States||Consumer Discretionary|
||CME Group||United States||Financials|
||Deere & Co||United States||Industrials|
||Facebook Inc||United States||Communication Services|
||First Republic Bank/CA||United States||Financials|
||Illumina||United States||Health Care|
||Microsoft||United States||Information Technology|
||PayPal||United States||Information Technology|
||SVB Financial Group||United States||Financials|
|1 Month||1 Year||3 Years P.A.||SINCE MANDATED|
|VOLATILITY3||8%||NUMBER OF STOCKS||71|
|BETA (USING DAILY RETURNS)4||0.63|
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. The index is the MSCI World Total Return Index, Net Dividends Reinvested, in A$.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$.