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Who is PanAgora

PanAgora Asset Management (PanAgora) is a well-known leader in quantitative investment strategies, managing over AU$52b* across a range of strategies for institutional investors worldwide. PanAgora offer a full range of investment products, including global, US and emerging market equity, diversified risk, asset allocation, balanced, currency and fixed income strategies. PanAgora is based in Boston, Massachusetts.

The relationship between Pengana and PanAgora has enabled the US based manager to bring their innovative research and intellectual capital capabilities to the Australian retail market.

*as at December 2015

Investment Strategy

The Fund employs a long/short equity strategy which aims to construct a portfolio that is generally neutral to market movements. As such the performance of the investment strategy is largely independent of the market’s performance.

The Fund seeks to achieve its objective by using a diversified set of strategies that have low correlation to one another. In addition, because many of these strategies are designed to generate profit under different market conditions, their combination is expected to result in more stable returns over time than any individual strategy in and of itself. These strategies have been developed by PanAgora.

In the future, the Fund may invest in additional strategies developed by PanAgora that fit the Fund’s risk/return objectives. Through the potential allocation to the additional strategies, PanAgora would seek to provide the Fund with excess performance by introducing strategies with very low correlation to the Fund’s other sources of return, with little incremental risk to the Fund.

The strategies are designed to capitalise on long-term, intermediate-term and short-term inefficiencies.

Investment philosophy

PanAgora believes that stock prices are largely driven by the fundamental strengths or weaknesses of a company’s business prospects, and that certain fundamentally based measures are indicative of a company’s likely success or failure. Opportunities also exist because many investors either lack the ability to identify and evaluate these measures with sufficient breadth and speed or are hampered by institutional rigidities. As a result, the prospects of a company’s likely success or failure are often mispriced by market participants. PanAgora believes the best way to exploit these opportunities is to deploy an approach that combines fundamental analysis with robust quantitative techniques in order to filter the investment universe and select the investments.

Performance History & Investor Reports

PanAgora Absolute Return Global Equities Fund and Strategy

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The Fund has no benchmark as it implements an absolute return strategy with an objective of generating positive absolute returns net of fees. The RBA Cash Rate Target is utilised as a hurdle to calculate performance fees.

*From December 2015, performance figures are those of the Fund's class A units (including reinvestment of distributions). Between September 2010 and November 2015, AUD performance has been simulated by Pengana from the actual USD Composite gross strategy returns (prior to April 2013 using the Monthly Liquidity Composite; from April 2013 onwards using the Daily Liquidity Composite) using 3 month rolling forwards to hedge movements in the AUDUSD spot rate. The effect of management fees of 1.52% p.a. and performance fees of 20.22% p.a. form part of this simulation. Performance fees include a hurdle rate (RBA Cash Rate converted to a daily rate). Fees are stated inclusive of GST net of ITCs. The Composite is comprised of all discretionary institutional accounts managed by PanAgora in this investment style. The creation date and inception date for the Monthly Liquidity Composite was September 1, 2010. The creation date and inception date for the Daily Liquidity Composite was April 1, 2013. PanAgora’s composite performance is GIPS compliant. The USD gross track record data is historical. Past performance is not a reliable indicator of future results. The value of investments can go up and down. As with any investment there is a potential for profit as well as the possibility of loss.

Investment Team

  • George Mussalli

    Chief Investment Officer and Head of Research, Equity

  • Richard Tan

    Director, Equity

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