The Pengana Australian Equities Core Fund aims to provide investors with an annualised return of 12 to 15%1 before fees over the medium term via a concentrated core portfolio of equity and interest bearing holdings. The Fund is managed out of Sydney, Australia and uses fundamental research to evaluate investments capable of generating the target return over the medium term.
The Fund invests in listed equities and seeks to hold a concentrated core portfolio of 15-20 listed stocks in outstanding businesses to provide capital preservation in real terms, and A$ returns of 15% p.a. compounded over the medium term time horizon. It achieves this by only investing in equities when there is a deep conviction that they will produce superior risk-adjusted returns. If, at times, these criteria are considered unachievable due to market conditions then the assets will be held in cash, thereby preserving capital and avoiding the absolute downside of equities investing. At all times, the Fund Manager makes this asset allocation decision and adjusts the equities/cash balance as he deems appropriate.
Investments will be principally ASX 300 listed companies selected through fundamental company research. The investment methodology is designed to profit from a focus on tax aware returns (both capital and income) generated by owning outstanding businesses at reasonable prices.
The Fund may invest “long” (i.e. the purchase of securities which the Investment Manager believes will appreciate in value) and “short” (i.e. the sale of securities which the Investment Manager believes will depreciate in value) limited to 30% of Net Asset Value. It may therefore benefit from securities increasing or decreasing in value. When evaluating Australian equities in which to invest, the Fund Manager may from time to time identify and subsequently invest in a comparable offshore security which is considered more favourable.
The fund employs a fundamentally research strategy encompassing the following:
The portfolio construction process aims to incorporate the best investment ideas with appropriate levels of diversification so that the Fund’s investment objectives are achieved. Index and stock derivatives are used to reduce risk (i.e. hedge) or gain exposure to investments.
The application of sound risk disciplines is key to adding value to the Fund. Investment guidelines include investing up to a maximum of 10% in any of the Fund’s latest Net Asset Value in any single position. The Fund may borrow (gear) up to 50% of the Fund’s latest Net Asset Value.
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Rhett Kessler - Fund ManagerRhett joined Pengana in October 2007. He was previously at IAG Asset Management (IAGAM) for 8 years. In addition to his role as Head of Research at IAGAM, he played an active role as a Joint Portfolio Manager for various wholesale funds totalling $3.3 billion. In 2005, he successfully launched and ran the IAGAM Absolute Return Fund. Prior to this he was a rated Media analyst for UBS Australia for two years. Before emigrating from South Africa in 1996, Rhett successfully managed wholesale and retail equity portfolios as Deputy General Manager of Investment for Liberty Asset Management. Rhett holds bachelor degrees in Commerce and Accounting from the University of Witwatersrand, is a Chartered Accountant (SA) and a Chartered Financial Analyst. |
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Anton du Preez - Research AnalystPrior to joining Pengana Capital in February 2009, Anton was with Rand Merchant Bank (RMB) for five years. In this role he managed a value proprietary fund in Australia for two years, and before that a similar RMB fund in South Africa. Before joining RMB, Anton was a co-principal of a market neutral hedge fund based in Cape Town, South Africa. Previously, he was a director and fund manager at PSG Asset Management responsible for managing a global equity fund, which achieved top quartile performance on a consistent basis. Anton was a rated sell-side analyst with ABN Amro covering industrial and consumer sectors. Anton holds bachelor and honours degrees in Commerce and Accounting from the University of Stellenbosch and Pretoria, is a Chartered Accountant (South African and Canadian) and a Chartered Financial Analyst. Anton is also qualified as a Chartered Management Accountant (UK). |
| Fund Style | Concentrated core portfolio of 15-20 listed equities (predominantly Australian) |
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| Fund Objective | To deliver consistent compounded returns of 12-15% p.a. |
| Fund Benchmark | RBA Cash Rate, All Ordinaries |
| Inception Date | 30/06/2008 |
| Management Fees1 | 1% per annum of Net Asset Value |
| Performance Fees1 | 10% per annum of investment surpluses without impacting on cash return, with standard high water mark |
| Distribution | Annual |
| Investors | Wholesale clients only |
| Minimum Initial Investment Amount | $100,000 |
| Performance report | June 2010 | Click to view |
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| Financial report | June 2009 | Click to view |
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| Investor update | June 2010 Tax Distribution | Click to view |
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| Date | Application | Redemption | Distribution ($) | History |
|---|---|---|---|---|
| 30/06/2010 | 1.1085** | 1.1029** | Click to view |
If you would like a copy of the Information Memorandum posted to you, please email your name and address to: tom.curtis@pengana.com
For any questions regarding the application process please contact:
Private Clients: Tom Curtis, +61 2 8524 9986, tom.curtis@pengana.com
Private Clients: Juliet Dunworth, +61 2 8524 9984, juliet.dunworth@pengana.com
Advisors: Justin Brooks, +61 3 8663 7906, justin.brooks@pengana.com
Institutional Clients: Denis Carroll, +61 2 8524 9974, denis.carroll@pengana.com
To email the Fund Manager (Rhett Kessler): rhett.kessler@pengana.com
Please note that the Fund is currently only available to Wholesale Clients (also sometimes known as “Sophisticated Investors”), and the minimum initial investment amount is A$100,000. Australian and New Zealand residents may wish to view the definition of a Wholesale Client here.
The Financial Services Guide is an important document that tells you about the services and products that Pengana Capital Limited is authorised to provide to you under the Australian Financial Services Licence. Please ensure you have read this document prior to downloading the Information Memorandum below.
In order to make an investment in this Fund, please fill in, sign and submit an application form which can be found in the Information Memorandum pages 18-45.
Should you wish to make on additional investment in the Fund, please send a formless fax or letter to the registry contact stated on the application form, informing them of the amount you wish to invest along with your name(s), the account details your funds will be coming from and your investor number (in addition, if the previous Wholesale Investor Certificate which you provided is over two years old, you will also need to provide a new Wholesale Investor Certificate). This document must be signed by all original applicants. A standard electronic transfer into the Fund’s account is sufficient to finalise the application of additional funds. Alternatively, you can post a cheque, made payable to the Fund’s account as stated on the application form.
| Financial Services Guide (FSG) | Click to view I have read the Financial Services Guide |
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| Information Memorandum (IM) | Click to view |
If you would like a copy of the Information Memorandum posted to you, please email your name and address to: tom.curtis@pengana.com
For any questions regarding the application process please contact:
Private Clients: Tom Curtis, +61 2 8524 9986, tom.curtis@pengana.com
Private Clients: Juliet Dunworth, +61 2 8524 9984, juliet.dunworth@pengana.com
Advisors: Justin Brooks, +61 3 8663 7906, justin.brooks@pengana.com
Institutional Clients: Denis Carroll, +61 2 8524 9974, denis.carroll@pengana.com
To email the Fund Manager (Rhett Kessler): rhett.kessler@pengana.com