PORTFOLIO
Top Holdings (alphabetically)
Sector Breakdown
Capitalisation Breakdown
Region Breakdown
Segment
PERFORMANCE
PERFORMANCE SINCE STRATEGY INCEPTION
NET PERFORMANCE FOR PERIODS ENDING 31 Mar 20211
PERFORMANCE SINCE STRATEGY INCEPTION
NET PERFORMANCE SINCE INCEPTION2
COMMENTARY
US healthcare insurers Cigna and United Health rose 18% and 14% respectively due to a rotation into value stocks. In addition, Cigna hosted an analyst day highlighting it expects 6-8% long term annual revenue growth and 10-13% EPS growth. Despite this the shares trade on just 12x PE in part due to regulatory concerns which we feel are overblown.
US discount retailer Dollar Tree rose 18% after reporting strong results as well as being buoyed by the US government stimulus package.
Dutch bank ING rose 13%, boosted by the global economic recovery which in turn caused European bond yields to rise. Rising yields boost bank’s profitability as the can lend at higher rates.
Japanese online retailer Rakuten rose 8% following an investment from Tencent, Walmart and Japan Post in part to fund its new telecom network. The company also announced a strategic alliance with Japan Post to boost its distribution capabilities.
Chinese stocks were weak over the month as the Chinese government tightened credit conditions in the country to control debt. Internet stocks were also weak due to Chinese government antitrust investigations into Alibaba and Tencent. In addition, US hedge fund Achegos was forced to liquidate its holdings which depressed the share price of many US listed Chinese companies. This impacted several of our holdings including game streaming provider Huya down 25%, auto advertising company Autohome down 20% and gaming company Tencent down 6.5%. Huya also reported weaker than expected results.
US diagnostic test producer Quidel downgraded their full-year guidance due to weaker than expected Covid testing volumes which saw the share price fall 20%. Interestingly two of the company’s competitors Luminex and Genmark have been acquired in April so corporate activity in the sector is growing.
PROFILE
STATISTICAL DATA
PORTFOLIO SUMMARY
VOLATILITY3
9.4%
NUMBER OF STOCKS
36
BETA4
0.76
FEATURES
- APIR CODE HHA0002AU
- REDEMPTION PRICEA$ 2.8633
- FEES * Management Fee: 1.5%
- Minimum initial investment Closed to new investors (existing investors may make additional investments)
- FUM AT MONTH END A$ 63.46m
- STRATEGY INCEPTION DATE 1 July 2015
- BenchmarkMSCI All Country World Total Return Index in AUD**
Fund Managers
James McDonald
CIO
Description
“The Pengana International Fund – Ethical Opportunity (the Fund) is a long only fund that holds 30-50 companies across developed and developing markets, large and small companies. The Fund predominantly invests 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 investment in companies that, in our opinion, are harmful to people, animals or the environment. Important Note: There are significant accumulated tax losses contained within the Fund which may benefit existing investors.
We have accordingly closed the Fund to new investors in order to maintain the interests of existing investors. We strongly urge you to seek tax advice if you are an investor in the Fund, to understand how this may benefit you.
EXPLORE OUR FUNDS
1.2. A new strategy was implemented for the Pengana International Fund – Ethical Opportunity from 1 July 2017 by the Pengana team. The financial information below refers to the strategy currently employed by the Fund. For full performance history of the Fund, please refer to the Pengana website. From July 2017, performance figures are those of the Hunter Hall Pengana International Fund – Ethical Opportunity’s class A units (net of fees). Between July 2015 and June 2017, performance figures have been recalculated by adjusting the Pengana International Fund’s (ARSN 610 351 641) net returns to reflect the management fee of the Pengana International Fund – Ethical Opportunity. From July 2017, the Pengana International Fund – Ethical Opportunity has been managed by the same team and with the same strategy as the Pengana International Fund. The Pengana International Fund’s net track record data is historical. Past performance is not a reliable indicator of future performance. The value of the investment can go up or down.
3. Annualised standard deviation since inception. 4. Relative to the MSCI All Country World Total Return Index in AUD.
* For further information regarding fees please see the PDS available on our website.
**The benchmark was changed from MSCI World Total Return Index (net, AUD) effective 6 June 2017.
Important Note: There are significant accumulated tax losses contained within the Fund which may benefit existing investors.
We have accordingly closed the Fund to new investors in order to maintain the interests of existing investors. We strongly urge you to seek tax advice if you are an investor in the Fund, to understand how this may benefit you.