The Pengana Absolute Return Asia Pacific Fund invests in a portfolio of Asia Pacific equities. The Fund aims to deliver consistent returns that are uncorrelated with traditional asset classes, by exploiting inefficiencies in share prices caused by significant corporate events in the Asia Pacific region.
The philosophy of the Fund is based on seeking consistent superior investment returns for investors rather than returns driven by the general direction of equity markets. The Fund employs an active fundamental stock selection process based on proprietary models.
The investment team use three investment strategies to participate in corporate events - Mergers & Acquisitions (M&A), Relative Value and Directional Alpha strategies.
Corporate events can create market inefficiencies and Pengana's proprietary fundamental analysis has been designed to uncover attractive opportunities for investors.
The Fund aims to deliver consistent returns with low volatility and a low correlation with equity markets and other traditional asset classes. It therefore has the potential to provide excellent diversification benefits with other investments in a portfolio.
The portfolio construction process attempts to control risk by maintaining low exposure to relative market movements and other broad risk factors. Stock positions may be either long or short and leverage may be used.
Benefits of investing:
Key focus on capital preservation and risk management. This is achieved through low net market exposure and hedging the exposure to other broad risk factors.
Diversification. Returns are generated from stock specific events, such as mergers and acquisitions, rather than market movements, providing attractive potential diversification benefits.
Ability to exploit structural changes occurring across the Asia Pacific region. The Fund invests across multiple investment strategies and geographies to take advantage of structural changes and growth occurring across the region.
Absolute return focus. The Fund has an absolute return investment objective and aims to generate returns throughout different market conditions by investing across different sub strategies, sectors and markets.
Long track record. The Fund has a long track record, producing positive returns with low volatility since inception.