TARGETING FULLY-FRANKED DIVIDENDS
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Investment Strategy
Pengana International Equities Limited (ASX: PIA) gives investors access to a diversified portfolio of 30-50 global equities through a Listed Investment Company that has traded on the ASX since March 2004. The Company’s Investment Manager is a wholly owned subsidiary of Pengana Capital Group Limited (ASX: PCG).
The sole purpose of a LIC is to manage investments on behalf of its shareholders. Investors can become shareholders in PIA by purchasing the company’s shares through any stockbroker or online broker.
The aim of PIA is to generate consistent long-term returns whilst reducing volatility and the risk of losing capital.
The strategy is long-only, benchmark independent and typically holds 30-50 companies. The mandate allows investment across geographies, industries and company sizes. The companies considered for inclusion in the portfolio demonstrate large and growing free cash flow generation, and are priced attractively relative to their cash flow.
The Fund utilises a negative screening process which seeks to avoid investment in companies that derive operating revenues from direct and material business involvement in the following:
- Alcohol
- Adult content
- Animal cruelty
- Fossil fuels (coal, coal seam gas, oil)
- Gambling
- Genetically modified organisms (GMO)
- Human rights abuses and exploitation
- Mining
- Nuclear
- Old growth forest logging
- Securities from issuers on UN sanctions list
- Tobacco
- Uranium mining
- Weapons
Integration of ESG factors into the research process directs investments to well-managed, responsible and progressive companies.
An integral element of the portfolio construction process is the division of stocks that meet the investment criteria into three segments: Core, Cyclical and Opportunistic.
Core
(60-80% of the portfolio) are stable and growing businesses that generate consistent returns.
Cyclical
(0-30% of the portfolio) are businesses operating in cyclical industries that are poised for a cyclical upturn, which is not recognised in their share price.
Opportunistic
(0-20% of the portfolio) are unique, company specific situations that offer attractive potential upside.
The portfolio is created from the 30-50 stock ideas that work best together, rather than just the 30-50 best ideas.
Pengana International Equities Limited is managed by an experienced team of six from the Pengana International Equities team, with over 90 years of combined experience. The team is led by Chief Investment Officer and Portfolio Manager Jordan Cvetanovski and Head of Research and Portfolio Manager Steven Glass.
Benefits of investing
Skilled investment team. The investment team has over 90 years of combined experience investing in global equities and has developed a successful and repeatable investment process.
A truly active strategy. A relatively concentrated portfolio that is selected purely on investment merits rather than index weight.
Investment in high quality businesses at compelling valuations. The strategy invests in businesses with compelling business models that consistently generate large and growing sums of cash.
Focus on risk and return. The portfolio focuses on 30-50 stocks that work together, with sufficient concentration to deliver returns and sufficient diversification to reduce risk.
Investment approach that is suitable across market environments. The investment team invests across different geographies, industries and company sizes and can adjust to changing market environments.
Ethical process. Negative ethical screens exclude industries that, in our opinion, can cause harm to people, animals or the environment. Integration of ESG factors into the research process directs investments to well managed, responsible and progressive companies.
How to invest
Pengana International Equities Limited shares are traded on the Australian Securities Exchange (ASX) under the ticker code PIA. You can purchase shares through a stockbroker in the same way as you buy shares in other companies.
If you do not have a stock broker, the ASX provides a service which can assist you in choosing a stock broker.
