Pengana Global Small Companies Solution
Awards
Finalist - Standard & Poor's Fund Awards 2007 (International Equities - Diversified)
Fund Overview
The Pengana Global Small Companies Solution uses a multi manager approach, investing with regional small company investment specialists to produce a global portfolio. Small companies have the potential to provide attractive returns to investors, and should perform well relative to the broader market over the long term due to their greater risk premium. Pengana has selected underlying managers that demonstrate a superior understanding of their respective markets and an ability to capitalise on this relatively inefficient asset class. The Fund currently invests in three regions: North America, Europe and Asia, with the Benchmark equally weighted between the three regions. The Fund is passively rebalanced back to the Benchmark, and exposure to international investments hedged back into Australian dollars, with the intention of covering the Fund’s exposure to currency risk.
Performance
Accumulated Fund and Comparative Benchmark Performance Since Inception to end June 2010
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Pengana Global Small Companies Solution
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Global Small Companies Benchmark*
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Pengana Global Small Companies Solution
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Global Small Companies Benchmark*
* 1/3 US – Russell 2000, 1/3 Europe – HSBC Smaller Europe, 1/3 Asia – MSCI Japan Small Cap Index
Global small companies have the potential to provide attractive returns to investors. Small companies should perform well relative to the broader market over the long term due to their greater risk premium. Small cap investment managers have also demonstrated a significant ability to outperform their benchmarks within this relatively inefficient asset class.
The Fund uses a multi manager approach, investing with regional small company investment specialists to produce a global portfolio. To maximise the returns generated the Fund uses active investment managers with portfolios that are not overly diversified.
Pengana believes that this regional multi manager approach is superior to that adopted by most global small company managers for the following reasons:
- The correlation and integration between smaller companies within different regions is relatively low
- Industry factors are becoming more influential for large companies, smaller companies are typically more affected by country and regional factors
- Proximity to the local markets and an appreciation of their main characteristics is a significant benefit
- Local specialists have a greater ability to visit companies, meet senior management and monitor developments.
Pengana has selected underlying managers that demonstrate a superior understanding of their respective markets and an ability to capitalise on this advantage. Pengana’s rigorous research and monitoring process incorporates:
- At least annual on site meetings with each underlying manager
- Monthly monitoring of performance, risk and other significant developments
- Application of its expertise in asset management, risk management, operations and marketing
- The use of an external research house to assist in the identification and assessment of potential managers.
The Fund currently invests in three regions: North America, Europe and Asia. The Benchmark is equally weighted between the three regions and the Fund is passively rebalanced back to the Benchmark.
Each underlying manager is allocated a portion of the Fund’s assets to manage and is subject to limits imposed on the instruments and securities they may trade.
The Fund’s exposure to international investments has been hedged back into Australian dollars, with the intention of covering the Fund’s exposure to currency risk.
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Nick Griffiths - Director & Chief Investment Officer
The Pengana Global Small Companies Solution uses a multi manager approach, investing with regional small company investment specialists to produce a global portfolio. Small companies have the potential to provide attractive returns to investors, and should perform well relative to the broader market over the long term due to their greater risk premium. Pengana has selected underlying managers that demonstrate a superior understanding of their respective markets and an ability to capitalise on this relatively inefficient asset class. The Fund currently invests in three regions: North America, Europe and Asia, with the Benchmark equally weighted between the three regions. The Fund is passively rebalanced back to the Benchmark, and exposure to international investments hedged back into Australian dollars, with the intention of covering the Fund’s exposure to currency risk.
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| Fund Style |
Global small listed companies |
| Fund Objective |
To obtain returns greater than the Benchmark after fees and expenses over the medium term (3 years) |
| Fund Benchmark |
Equally weighted between the US, Asia and Europe. Recognised indices used within each region1 |
| Inception Date |
November 2005 |
| Management Fees3 |
0.7688% p.a.%p2 |
| Performance Fees3 |
10.25% p.a. of the out performance above the Benchmark |
| Distribution |
Annually |
1 Regional indices: 1/3 US – Russell 2000, 1/3 Europe – HSBC Smaller Europe, 1/3 Asia – MSCI Japan Small Cap Index.
2 Including GST less any reduced tax input credits. Please refer to the Product Disclosure Statement for a more detailed explanation.
3 Including GST net of any input tax credits. Please refer to the Product Disclosure Statement for a more detailed explanation.
Pengana Global Small Companies Solution
| Date |
Application A$ |
Redemption A$ |
Distribution A$ |
History |
| 29/07/2010 |
0.7006 |
0.6950 |
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* CUM price
** Ex distribution
- BT Margin Lending
- nab Margin Lending
Investors can either invest directly into the fund via the Product Disclosure Statement (PDS) or indirectly via a Wrap / Master Trust provider. The minimum direct investment is A$25,000.
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 Product Disclosure Statement 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 Product Disclosure Statement.
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. 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.
If you would like a copy of the Product Disclosure Statement posted to you, please email your name and address to: operations@pengana.com
In order to comply with regulations aimed at the prevention of money laundering and counter terrorism financing, which came into effect on 31 January 2008, we are now required to obtain more detailed identification information from any new investors into the Pengana funds. Please refer to the below section “New Application Requirements under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006” for further information and the forms which are now required.
For any questions regarding the application process please contact:
Institutional Clients: Denis Carroll, +61 2 8524 9974, denis.carroll@pengana.com
Private Clients: Juliet Dunworth, +61 2 8524 9984, juliet.dunworth@pengana.com
Retail Clients & Advisors: Justin Brooks, +61 3 8663 7906, justin.brooks@pengana.com
Requirements
In order to comply with regulations aimed at the prevention of money laundering and counter terrorism financing, which came into effect on 31 January 2008, we have prepared the “Know Your Customer Information” forms set out below. You will find separate forms for different types of investors, such as Individual/Sole Trader, Company, Trust (Including SMSF) and Other Organisation.
We must receive the relevant completed form and any additional verification information identified in the form before we can accept any applications from new investors into the Pengana funds.
If we have not received the completed relevant “Know Your Customer Information” form and any additional verification information required within two weeks of receiving the original application (or longer if the compliance officer agrees) then we will have to refuse the application and return the application monies without any interest payment.
Scope
Any new direct investors, or existing investors who wish to invest directly into any Pengana fund under a different investor name or entity, are required to provide the relevant “Know Your Customer Information” form.
Please note that we do not require a completed form from any existing investor in the Pengana funds, provided the investment is made in the same name. This includes existing investors who are topping up their investment in a Pengana fund or investing into another Pengana fund.
Due to the complex nature of the application of the new regulations to the fund manager / platform provider as well as fund manager / margin lender relationship, please refer to your platform provider or margin lender in the first instance as to whether you may be required to supply a Pengana “Know Your Customer Information” form with your application.
| Know your Customer Information - Individual/Sole Trader |
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| Know your Customer Information - Trust (including SMSF) |
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| Know your Customer Information - Company |
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| Know your Customer Information - Other Organisation |
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