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.
||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|
||UnitedHealth Group Inc||United States||Health Care|
|1 Month||1 Year||SINCE INCEPTION P.A.2|
|VOLATILITY3||9.7%||NUMBER OF STOCKS||34|
|BETA (USING DAILY RETURNS)4||0.77||MAXIMUM DRAW DOWN||-9.4%|
CIO & Portfolio Manager
Deputy Portfolio Manager & Analyst
The Pengana International Fund – Ethical 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 are, in our opinion, 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. Net performance figures are shown after all fees and expenses and assume reinvestment of distributions. Past performance is not a reliable indicator of future performance, the value of investments can go up and down.
2. A new strategy was implemented for the Pengana International Fund – Ethical from 1 July 2017 by the Pengana team. The financial information below refers to the strategy currently employed by the Pengana International Fund – Ethical. For full performance history of the Pengana International Fund – Ethical, please refer to the Pengana website.
From July 2017, performance figures are those of the Pengana International Fund – Ethical (the “Fund”) 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 Fund. From July 2017 the Fund 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.