Fund Overview

The Pengana Global Bond Fund uses a multi-manager approach, investing with investment specialists in different debt asset classes to produce a global diversified portfolio. It provides clients with an exposure to asset classes and specialist fund managers that they may not be able to access if investing directly.

The Fund primarily invests in government bonds, mortgages and asset backed securities, corporate credit, senior secured bank loans, emerging market debt and cash. The allocations are made within ranges to allow the Fund to take advantage of investment opportunities and manage risk.
The exposure to international investments is substantially hedged back into Australian dollars to reduce the Fund’s exposure to currency risk.

Investment Strategy

The Fund uses a multi-manager strategy investing in six distinct fixed income sectors. The investment objective is to outperform, on an after fees basis and assuming distribution reinvestments, the Barclays Global Aggregate Index over rolling 5 year periods while emphasising consistency and capital preservation¹.

Pengana believes that the multi-manager approach is appropriate in global bonds due to the very different characteristics of each asset class and the different skills required to manage them. The underlying fund managers may be boutiques operating in niche areas or larger managers leveraging scale and resource advantages.

The underlying managers’ investment styles are selected to take full advantage of investment opportunities while reducing the cyclicality of the return evident in some fixed income sectors. The underlying managers may adopt an absolute return approach (i.e. they will seek to reduce the possibility of a negative return) or employ relative value long/short strategies.

If Pengana does not believe ‘alpha’ (value added above the benchmark or target) can be generated consistently in a sector, or it is too expensive, a passive management style is adopted (investment in an index fund, exchange traded fund or a derivative to gain exposure to the sector without active security selection). Such an approach provides exposure to the sector at minimal cost to the investor.

The asset allocation of the Fund will generally be managed in keeping with the following investment guidelines:

Asset Allocation

Pengana performs a rigorous research and monitoring process to select the most appropriate underlying fund managers. The process incorporates at least annual on site meetings with each manager and ongoing monitoring of performance, risk and other significant developments as they relate to the management companies, investment teams or processes.

In selecting managers Pengana is able to draw upon its capabilities in risk management, operations and marketing, as well as its own experience as an investment manager. In addition Pengana may use external research houses to assist in the identification and assessment of potential underlying managers.

Reports

Unit Prices

Pengana Global Bond Fund - Class A

Pengana Global Bond Fund - Class B

Pengana Global Bond Fund - Class C

New Applications

INSTITUITIONAL INVESTORS PLEASE CONTACT John Hamer on +61 2 8524 9936, or email john.hamer@pengana.com

1. Read the Financial Services Guide and then the current Product Disclosure Statement (PDS):

• Financial Services Guide
• Product Disclosure Statement

2. Complete the Application Form found in the PDS (choose from the list below)

• Application Form for Individuals and Sole Traders refer to pages 33-37
• Application Form for Australian Trusts and Self Managed Superannuation Funds refer to pages 38-47
• Application Form for Australian and New Zealand Companies refer to pages 48-54
• Application Form for Partnerships, Registered Co-operatives and Government Bodies refer to pages 55-63

3. Send the completed Application Form and required Anti Money Laundering (AML) identification document(s) to the Administrator:

BNP Securities Services
PO Box R209
Royal Exchange NSW, 1225
Attention: Unit Registry,
Pengana Global Bond Fund

Due to AML legislative requirements, we cannot accept an ‘Application Form for New Investment’ by facsimile or email.

4. Transfer funds to Pengana

Transfer your application monies:

• Cheques – payable to:
  “Cogent Nominees Pty Limited ACF Pengana Global Bond Fund Applications Account”

• EFT or Direct Deposit:
  
  Acct name: Cogent Nominees Pty Limited ACF Pengana Global Bond Fund Applications Account
  Bank: Westpac Banking Corporation
  BSB: 032002
  Acct number: 689709

In addition, if you are paying the application monies by EFT or direct deposit you must ensure your investor name is recorded as a narrative on the payment. You will also need to advise us prior to the processing cut-off time (4pm each business day) so that we can identify your money.