Pengana International Equities Limited (ASX: PIA)
Pengana International Equities Limited (ASX: PIA)
Meaningfully differentiated
During the month, the Company delivered 0.4%, which was a strong outcome in the context of a market that declined -1.1%.
During the month, the Company delivered 0.4%, which was a strong outcome in the context of a market that declined -1.1%.
The Company’s stocks performed well with Pinterest being the standout as its share price increased 21% following its 3Q20 results.
Other stocks that made meaningful contributions were Tencent and Lumentum.
Weaker performing stocks in the portfolio were Flow Traders, Mowi and Deutsche Boerse.
The Company is meaningfully differentiated to the Benchmark with 25% of the Company invested in Europe ex-UK vs the Benchmark’s 13% and 42% invested in North America vs the Benchmark’s 61%.
Further, the Company has fully exited the FAANG’s and Microsoft and has 5% invested in the IT sector vs the Benchmark’s 22%.
Finally, the portfolio is on a c5% FCF yield, 8% revenue CAGR and the companies in the portfolio have virtually no debt, all of which compare favourably to the broader market.
All portfolio holdings were compliant with the principles of the UN Global Compact and the portfolio had a “low ESG risk” rating, based on the aggregate weighted score of the portfolio’s holdings.
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Alibaba Group Holding LTD | China | Consumer Discretionary |
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Charter Communications Inc | United States | Communication Services |
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Houlihan Lokey Inc | United States | Financials |
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Lumentum | United States | Information Technology |
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Mowi ASA | Norway | Consumer Staples |
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Pinterest Inc | United States | Communication Services |
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Rakuten Inc | Japan | Consumer Discretionary |
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Tencent Holdings | China | Communication Services |
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Thermo Fisher Scientific | United States | Health Care |
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UnitedHealth Group Inc | United States | Health Care |
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.
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$.
