SUMMARY
During the month, the Fund delivered 0.5%, which was a strong outcome in the context of a market that declined -0.4%.
Meaningfully differentiated
PORTFOLIO
Top Holdings (alphabetically)
Sector Breakdown
Capitalisation Breakdown
Region Breakdown
Segment
PERFORMANCE
PERFORMANCE SINCE STRATEGY INCEPTION
NET PERFORMANCE FOR PERIODS ENDING 31 Oct 20201
PERFORMANCE SINCE STRATEGY INCEPTION
NET PERFORMANCE SINCE INCEPTION2
COMMENTARY
During the month, the Fund delivered 0.5%, which was a strong outcome in the context of a market that declined -0.4%.
The Fund’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 Fund is meaningfully differentiated to the Benchmark with 25% of the Fund invested in Europe ex-UK vs the Benchmark’s 13% and 42% invested in North America vs the Benchmark’s 61%.
Further, the Fund 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 Fund 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.
PROFILE
STATISTICAL DATA
PORTFOLIO SUMMARY
VOLATILITY3
9.4%
NUMBER OF STOCKS
33
BETA4
0.76
FEATURES
- APIR CODE HOW0002AU
- REDEMPTION PRICEA$ 3.0403
- FEES * Management Fee: 1.35% p.a
- Minimum initial investment $25,000
- FUM AT MONTH END A$ 344.56m
- STRATEGY INCEPTION DATE 1 July 2015
- BenchmarkMSCI All Country World Total Return Index (net, AUD)
Fund Managers
Description
The Pengana International Ethical 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 are, in our opinion, harmful to people, animals or the environment.
EXPLORE OUR FUNDS
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 Ethical Fund from 1 July 2017 by the Pengana team. The financial information refers to the strategy currently employed by the Pengana International Ethical.
From July 2017, performance figures are those of the Pengana International Ethical Fund (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 portfolio construction strategy as the Pengana International Fund, complemented by strict ESG filters and processes. 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.