Fund Overview

The Pengana Global Resources Fund provides investors with equity exposure to companies within the global mining, energy, steel, commodities and associated services sectors. The Fund is managed out of Melbourne, Australia and uses multiple strategies to profit from inefficiencies in the pricing of companies in its investment universe. Among the strategies utilised by the Fund is the ability to be both long and short securities which allows market volatility to be better managed.

Please click here to the view the fund profile.

Awards

Finalist – AIMA Australian 2008 Hedge Fund Awards (Best Emerging Manager)

Performance

Accumulated Fund and Comparative Benchmark Performance Since Inception to end December 2011

• Pengana Global Resources Fund
• Composite Index: 75% HSBC Global Mining Total Return Index, 25% MSCI World Energy Index, denominated in AUD

Fund Performance - Net of all Fees and Expenses as at end December 2011

• Pengana Global Resources Fund
• Composite Index: 75% HSBC Global Mining Total Return Index, 25% MSCI World Energy Index, denominated in AUD

Fund Performance - Net of all Fees and Expenses as at end December 2011

Investment Strategy

The Fund invests in global listed resource securities, and has been developed to provide investors with a long short exposure to mining, energy, steel, commodities and associated services. It is designed to profit from mis-pricing of liquid large caps, the best opportunities in small and mid caps, and event driven activity. The investment strategy relies primarily on fundamental company research and an understanding of the markets in which the companies operate.

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). It may therefore benefit from securities increasing or decreasing in value.

The Fund employs four core investment strategies:

• Pairs trading: the purchase of one company and sale of a related company (a “Pair”). The Fund seeks to gain from changes in the relative price of the two companies.
• Directional Long and Short: Long and Short positions in large and medium sized companies.
• Small Cap: Long positions in small sized companies.
• Event Driven: Long and Short positions to take advantage of opportunities resulting from corporate events such as mergers or acquisitions.

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 a key to adding value to the Fund. Investment guidelines include investing up to a maximum of 20% of the Fund’s net asset value in any single long position, and up to 10% in any short position. The Fund’s net exposure will be kept between -50% and 100% of the Fund’s net asset value, and the gross exposure below 200%.

Fund Managers

	Ric Ronge - Fund Manager Ric joined Pengana in November 2006 to establish the Pengana Global Resources Fund. Ric was previously employed as a Senior Executive at GRD Limited, an ASX 200 resource contracting and development company. Prior to this he was an Investment Manager at County / Invesco for over ten years, specialising primarily in mining and energy. At the end of this period the County / Invesco Australian equity fund was top quartile over one, three and five years. In addition, Ric has over four years experience as a rated stock-broking analyst at Swiss Bank Corporation Australia as well as Burdett Buckeridge and Young, covering the gold sector and smaller miners. Ric is a trained Geophysicist and has industry experience primarily in the oil sector. He has a Bachelor of Science with Honours and Bachelor of Economics from Monash University.
	Tim Schroeders - Analyst and Portfolio Manager Tim joined Pengana Capital in October 2007 as an analyst and portfolio manager. From December 2003 to September 2007 Tim worked for InvestorWeb Research – the research division of IWL Limited – formerly an ASX listed financial services company (now taken over by Commonwealth Bank of Australia). At InvestorWeb Research, Tim was General Manager – Equities Research. In that role he was responsible for co-ordinating equities research, equities strategy and company specific research in a variety of sectors including Materials and Energy. Previously Tim worked at County Investment Management for 11 years in a variety of roles including equity dealer, analyst and Investment Manager – Head of Resource Equities.
	Ken West - Fund Manager Ken joined Pengana in October 2010. Ken has a total of 15 years experience in funds management, initially as a resources specialist (domestic and international stocks) with National Mutual (now AXA), and then, for the last 10 years, as a founding partner and fund manager of resources and other industrial sectors, in the boutique funds management firm, Perennial Growth Management. The funds management experience was preceded by a total of 22 years in the resources industry with BHP Billiton (formerly Shell Billiton Limited) and Rio Tinto Limited (formerly CRA Limited). This experience covered most of the Australian mining regions and, internationally, in Europe and Southeast Asia, including as a regional manager for 2 years based in The Hague, and as chief geologist for base and precious metals in Eastern Australia. Ken has travelled widely to many of the major mining regions in the world, assessing opportunities during his time in industry and as a fund manager/investor reviewing company projects and management. His experience covers most of the major commodities, including the more specialised areas of aluminium and uranium. Ken’s key qualifications & professional experience are: Bachelor of Science (BSc, Major in Geology), University of Sydney NSW; Certified Topographical Surveyor, Australian Army Qualification, (Rank Sergeant); Exploration Management, Australian Mineral Foundation, Adelaide, South Australia; Taskforce member on Advanced Mining Investment Course/principal facilitator, Securities Institute of Australia.
	Felix Gozali - Assistant Analyst Felix joined Pengana in May 2011, after recently graduating with a First Class Honours degree in Commerce (Finance Honours) from the University of Melbourne, with a second major in accounting. Prior to joining Pengana, Felix gained work experience as a Research Assistant and Tutor in the Department of Finance at Melbourne University and at Ernst and Young, Singapore. Felix has been a recipient of many academic awards and merits and is currently enrolled as a Chartered Financial Analyst (CFA) candidate.

Reports

Unit Prices

Pengana Global Resources Fund

Please note that for the period of March 2007 to July 2007 no unit prices are available for this product as the Fund was run as an internal fund seeded by Pengana Capital only. Performance data for this period is available as calculated by Pengana Capital.

Ratings and Independent Research

*To the extent that any ratings, opinions or other information of Standard & Poors Information Services (Australia) Pty Ltd (ABN: 17 096 167 556, Australian Financial Services Licence Number: 258896) (Standard & Poors) constitutes general advice, this advice has been prepared by Standard & Poors without taking into account any particular persons financial or investment objectives, financial situation or needs. Before acting on any advice, any person using the advice should consider its appropriateness having regard to their own or their clients objectives, financial situation and needs. You should obtain a Product Disclosure Statement relating to the product and consider the statement before making any decision or recommendation about whether to acquire the product. Past performance is not a reliable indicator of future performance. Ratings can change or cease at any time and should not be relied upon without referring to the meaning of the rating. For more information regarding ratings please call S&P Customer Service on 1300 792 553 and also refer to Standard & Poors Financial Services Guide at www.fundsinsights.com. Each analytic product or service of Standard & Poors is based on information received by the analytic group responsible for such product or service. S&P and Standard & Poors are trademarks of The McGraw-Hill Companies, Inc. 2010 Standard & Poors Information Services (Australia) Pty Limited.