SUMMARY
In Nov-20 the fund delivered 5.2%, which was a strong outcome while still trailing the Market which delivered 7.1%. The stocks generating the largest positive returns were Mowi, Biotelemetry, and Cigna.
View full commentary HERE
The reflation trade
PORTFOLIO
Top Holdings (alphabetically)
Sector Breakdown
Capitalisation Breakdown
Region Breakdown
Segment
PERFORMANCE
PERFORMANCE SINCE STRATEGY INCEPTION
NET PERFORMANCE FOR PERIODS ENDING 30 Nov 20201
PERFORMANCE SINCE STRATEGY INCEPTION
NET PERFORMANCE SINCE INCEPTION2
COMMENTARY
The month’s trading was characterized as the reflation trade with the impetus being the strong results from various Covid vaccine trials and the belief that this will be the catalyst for economic growth in 2021. This resulted in a sharp and meaningful swing away from growth and to value stocks, with the former being a play on disruption-led growth and the latter on economic growth.
In Nov-20 the fund delivered 5.2%, which was a strong outcome while still trailing the Market which delivered 7.1%. The stocks generating the largest positive returns were Mowi, Biotelemetry, and Cigna.
We do not have large exposure to the growth-at-any price stocks meaning our weaker stocks did not come from that part of the market. Rather, the largest detractors were Alibaba and Tencent, with their performance explained by mushrooming Chinese regulation of dominant tech platforms.
The fund is meaningfully differentiated to the Benchmark with 25% of the Fund invested in Europe ex-UK vs the Benchmark’s 13% and 46% invested in North America vs the Benchmark’s 60%. Further, the fund has fully exited the FAANG’s and has 8% invested in the IT sector vs the Benchmark’s 21%.
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.
PROFILE
STATISTICAL DATA
PORTFOLIO SUMMARY
VOLATILITY3
9.5%
NUMBER OF STOCKS
36
BETA4
0.76
FEATURES
- APIR CODE PCL0026AU
- REDEMPTION PRICEA$ 1.4145
-
FEES *
Management Fee: 0.974%
Performance Fee: Nil - Minimum initial investment $25,000
- FUM AT MONTH END A$ 106.12m
- STRATEGY INCEPTION DATE 1 July 2015
- BenchmarkMSCI All Country World Total Return Index in AUD
Fund Managers
Description
The Pengana International Fund invests in 30-50 companies across developed and developing markets, large and small companies. The Fund predominantly invests in franchises 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’).
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. Inception 1st July 2015.
3. Annualised standard deviation since inception.
4. Relative to MSCI All Country World Total Return Index in AUD
* For further information regarding fees please see the PDS available on our website.