Emerging Companies Fund

The Pengana Emerging Companies Fund provides exposure to a diversified portfolio of Australian small cap industrial companies.

Investment strategy

Launched in 2004, the Pengana Emerging Companies Fund invests in a portfolio of small cap industrial companies. The Fund is closed to new investors, however existing investors can make additional applications.

The Fund’s investment strategy is based on an underlying belief that smaller companies’ share prices are often incorrectly priced.

The investment process focuses on a very active company visitation program to assess management quality and over time the investment team will visit most of the 800 companies in its universe.

In addition to meeting with management, the team’s qualitative-based approach also focuses on product/service quality, competitive advantage, growth prospects and financial position.

As the Fund will only invest in companies that can be valued with relative confidence, it will not own resource companies, listed property trusts or loss making companies.

The Fund has won numerous awards since its inception including most recently the Money Magazine Best of the Best Small Companies Fund award in 2016.

Benefits of investing:

Active approach. Many inefficiencies exist in the small caps market, enabling our team to identify mispriced opportunities.

Focus on minimising risks. Our stringent research enables lower risk exposure to quality small cap companies.

Limited fund size. Limiting the size of the Fund helps to maintain a nimble investment approach.

Conservative investment approach. The Fund does not own resources companies and looks to avoid loss-making companies.

Strong track record. The Fund has a strong track record in up and down markets since inception.

  • Performance History
    Fund performance for Emerging Companies Fund

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    Performance at November 2018
    1 MTH 1 YEAR 3 YEARS 5 YEARS Since Inception
    Emerging Companies Fund -1.29% -1.48% 8.68% 11.24% 13.14%
    S&P/ASX Small Ordinaries Accumulation Index -0.37% -1.63% 10.39% 7.07% 4.38%
    Outperformance vs. S&P/ASX -0.92% 0.15% -1.72% 4.18% 8.76%
     
    Emerging Companies Fund -1.29% -1.48% 8.68% 11.24% 13.14%
    Small Industrials Index 0.81% -1.22% 7.46% 7.66% 5.29%
    Outperformance vs. SII -2.10% -0.26% 1.22% 3.58% 7.85%

    Net performance figures are shown after all fees and expenses, and assume reinvestment of distributions. Past performance is not a reliable indicator of future performance, the value of investments can go up and down.

    The Fund does not invest in resource stocks.

    Fund inception date: 1 November 2004

    The equally weighted portfolio is calculated by compounding the equally weighted monthly returns of the Pengana funds that were open during each month.  The calculation includes the following funds: Pengana Emerging Companies Fund, Pengana Australian Equities Fund, Pengana Absolute Return Asia Pacific Fund, Pengana Global Small Companies Fund, Pengana International Equities Fund, Pengana International Equities Managed Risk Fund, Pengana PanAgora Absolute Return Global Equities Fund.  Net performance figures are shown after all fees and expenses, and assume reinvestment of distributions. Past performance is not a reliable indicator of future performance, the value of investments can go up and down.

  • Fund Facts
    Minimum investment:

    $25,000

    Recommended timeframe:

    Three or more years

    Inception date:

    1 November 2004

    Benchmark:

    S&P/ASX Small Ordinaries Accumulation Index

    Management fee (incl GST):

    1.3340% p.a. of the Fund’s net asset value

    Performance fee:

    20.5% of the performance (after management fees and expenses) above the return of the benchmark, subject to a high water mark and positive performance in the period. Payable six monthly.

    Buy/sell spread:

    0.30% on both applications and redemptions

    Entry/ exit fees:

    Nil

    Fund pricing:

    Daily

    Distribution frequency:

    Twice yearly (June and December)

    Typical number of stocks:

    50-60

    APIR code:

    PER0270AU

    Platform availability
    • HUB24
    • Netwealth
    • OneVue
  • Unit Prices
    Unit Prices History Table
    Date Application Redemption Distributions
    12 Dec 2018 2.1242 2.1115 -
    11 Dec 2018 2.0958 2.0833 -
    10 Dec 2018 2.0913 2.0788 -
    07 Dec 2018 2.1465 2.1336 -
    06 Dec 2018 2.1451 2.1323 -
    05 Dec 2018 2.1619 2.1490 -
    04 Dec 2018 2.2121 2.1989 -
    03 Dec 2018 2.2401 2.2267 -
    30 Nov 2018 2.1920 2.1789 -
    29 Nov 2018 2.1812 2.1682 -
    28 Nov 2018 2.1539 2.1410 -
    27 Nov 2018 2.1450 2.1322 -
    26 Nov 2018 2.1314 2.1187 -
    23 Nov 2018 2.1430 2.1302 -

    Download Unit Prices

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  • Investment Team
    Ed Prendergast
    Ed Prendergast

    Senior Fund Manager

    Read full profile

    Steve Black
    Steve Black

    Senior Fund Manager

    Read full profile

  • Investor Notifications
    Complaints resolution process for retail clients who invest through Platforms Download
    Attribution Managed Investment Trust regime changes - 4 December 2017 Download
  • Reports and Resources

    Emerging Companies Fund

     

  • Ratings and Awards
    Ratings
    Morningstar Refer to research house
    Zenith Recommended** Click to View
    Mercer Refer to research house
    Lonsec Highly Recommended* Click to View

    This report may only be accessed by holders of Australian Financial Services Licences and their authorised representatives.

    *The Lonsec Rating (assigned January 2018) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445. The Rating is limited to "General Advice" (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold Pengana Capital product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria.

    **The Zenith Investment Partners ("Zenith") Australian Financial Services License No. 226872 rating (assigned February 2018) referred to in this document is limited to "General Advice" (as defined by the Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Zenith usually charges the product issuer, fund manager or a related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessment’s and at http://www.zenithpartners.com.au/RegulatoryGuidelines.

     

    Awards

    2015 Lonsec Icon Award

    Finalist Money Management Fund Manager of the Year 2015 (Australian Equities (Small Cap))

    Finalist Money Management IMCA Fund Manager of the Year 2006 (Australian Shares (Small Cap))

    Finalist Money Management IMCA Fund Manager of the Year 2007 (Australian Shares Small Cap)

    Highly Commended Financial Review smart investor Blue Ribbon Awards 2009 (Australian Small Cap Shares)

    Money magazine Best of the Best Small Companies Fund 2016

    Runner Up Money Management,Lonsec Fund Manager of the Year 2011 (Australian Equities Small Cap)

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    Winner Money Management Lonsec Fund Manager of the Year 2008 (Australian Equities Small Cap)

    Winner Money Magazine Best Smaller Companies Fund 2009

    Winner Standard & Poor's Fund Awards 2007 (Australian Equity Small Caps)

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