The Fund targets capital preservation over supernormal returns, through a consistent focus on the security selection process and careful management of portfolio exposure and is managed by Pengana’s highly regarded Australian Equities team
The Fund seeks to generate consistent superior investment returns with a high component of the return from income, using fundamental analysis to select and own securities with the following characteristics;
- Good businesses with transparent and resilient business models;
- Competent management with a track record of integrity; and
- A favourable relationship between the market price and the future cash flows of the business.
The team employs detailed fundamental company research, including screens on historic and future dividend yields to uncover investment opportunities.
Benefits of investing
Focus on sustainable and growing income. Pengana principally targets Australian listed companies capable of generating underlying cash earnings yields of at least 6% per annum as the basis for a sustainable and growing dividend stream.
High conviction. All positions are high conviction and assessed on a risk-reward basis, resulting in a portfolio of 20-40 securities.
Superior research. The investment team attends many company management meetings each year as an integral part of the idea generation and company valuation process.
Flexibility. The strategic asset allocation of the Fund allows flexibility to respond to changing market conditions and opportunities.
Focus on capital preservation. Downside management is preferred over supernormal returns.