International Ethical Fund

The Pengana International Ethical Fund aims to provide exposure to an ethically screened diversified portfolio of highly cash-generative and growing global companies purchased at compelling valuations.

Rated # 1 Global ethical/sustainable fund by Zenith

Read the media release detailing the announcement here.

Investment strategy

The Pengana International Ethical Fund invests in a portfolio of global companies, diversified across geographies, industries and company sizes.

The Fund 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 portfolio is created from the 30-50 stock ideas that work best together, rather than just the 30-50 best ideas.

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:

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Integration of ESG factors into the research process directs investments to well-managed, responsible and progressive companies.

 

The investment team develops an understanding of the opportunities using detailed research covering financial statements, company meetings and external research. Companies that meet the investment criteria are divided into three segments:

Core (60-80%): are stable and growing businesses that generate consistent returns.

Cyclical (0-30%): businesses operating in cyclical industries that are posed for a cyclical upturn, which is not recognised in the share price.

Opportunistic (0-20%): are unique, company specific situations that offer attractive potential upside. 

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 fund. A relatively concentrated portfolio that is selected purely on investment merits rather than index weight.

Investment in high quality businesses at compelling valuations. The Fund aims to invest 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.

  • Performance History
    Fund performance for International Fund - Ethical and strategy

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    Investment Period to
    Please select a minimum 60 day date range.
    Performance at December 2020
    1 MTH 1 YEAR 3 YEARS 5 YEARS Since Inception
    International Fund - Ethical and strategy 1.02% 17.99% 12.99% 11.41% 11.40%
    MSCI All Country World Total Return Index (net, AUD) -0.08% 5.90% 10.56% 10.94% 9.99%
    Outperformance 1.10% 12.09% 2.43% 0.47% 1.41%

    From July 2017, performance figures are those of the Pengana International Fund - Ethical class A units (net of fees). Between July 2015 and June 2017 (shown in the green shaded area above), performance figures have been recalculated by adjusting the Pengana International Fund’s (ARSN 610 351 641) net returns to reflect the management fee of the Pengana International Fund - Ethical. From July 2017 the Pengana International Fund - Ethical has been managed by the same team and with the same strategy as the Pengana International Equities Fund. The Pengana International  Fund’s net track record data is historical. Past performance is not a reliable indicator of future performance. The value of the investment can go up or down.

    A new strategy was implemented for the Pengana International Fund - Ethical from 1 July 2017 by the Pengana team. The financial information refers to the new strategy. For full performance history of the prior strategy of the Pengana International Fund - Ethical please refer to the unit price history section below.

     

  • Fund Facts
    Minimum initial investment:

    $25,000

    Recommended timeframe:

    3 years or more

    Inception date:

    2 May, 1994

    Benchmark:

    MSCI All Country World Total Return Index (net) in $A

    Management fee (incl GST):

    1.35% p.a.

    Performance fee:

    Nil

    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:

    30-50

    APIR code:

    HOW0002AU

    Platform availability
    • AMP MyNorth
    • Asgard
    • BT Panorama
    • BT Wrap
    • Linear
    • Macquarie Wrap
    • Mason Stevens
    • Netwealth
    • OneVue
    • Powerwrap
  • Unit Prices
    Unit Prices History Table
    Date Application Redemption Distributions
    22 Jan 2021 3.3763 3.3561 -
    21 Jan 2021 3.3763 3.3561 -
    20 Jan 2021 3.3760 3.3558 -
    19 Jan 2021 3.3533 3.3332 -
    18 Jan 2021 3.3355 3.3156 -
    15 Jan 2021 3.3303 3.3104 -
    14 Jan 2021 3.3170 3.2971 -
    13 Jan 2021 3.3241 3.3042 -
    12 Jan 2021 3.3411 3.3211 -
    11 Jan 2021 3.3459 3.3259 -
    08 Jan 2021 3.3390 3.3190 -
    07 Jan 2021 3.3247 3.3048 -
    06 Jan 2021 3.2835 3.2639 -
    05 Jan 2021 3.2508 3.2313 -

    Download Unit Prices

    A new strategy was implemented for the Pengana International Fund - Ethical from 1 July 2017 by the Pengana team. The unit price history prior to 1 July 2017 refers to the previous strategy.

    Where a distribution is shown, the price for that date is prior to the payment of the distribution.  The following day's price will exclude that distribution payment amount.

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    A new strategy was implemented for the Pengana International Fund - Ethical from 1 July 2017 by the Pengana team. The unit price history prior to 1 July 2017 refers to the previous strategy.

    Where a distribution is shown, the price for that date is prior to the payment of the distribution.  The following day's price will exclude that distribution payment amount.

  • Investment Team
    Jordan Cvet
    Jordan Cvetanovski

    Portfolio Manager

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    Steven Glass
    Steven Glass

    Deputy Portfolio Manager and Analyst

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    James McDonald
    James McDonald

    Equity Analyst

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    joy web2
    Joy Yacoub

    Executive Director & Business Manager - International Equities Division

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    Ronald Yu
    Ronald Yu

    Equity Analyst

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    Ryan Fisher
    Ryan Fisher

    Equity Analyst

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    Veronica2
    Veronica Price

    Equity Analyst

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  • Investor Notifications

    On 30 October 2020 the name of the Pengana International Fund – Ethical (ARSN 093 079 906) was changed to Pengana International Ethical Fund.

    Notice of change of Address Download
    Complaints resolution process for retail clients who invest through Platforms Download
    Attribution Managed Investment Trust regime changes - 4 December 2017 Download
    Notification to investors regarding the proposed change of responsible entity from Pengana Investment Management Limited to Pengana Capital Limited (both part of the Pengana Capital Group) Download
    Website notice regarding change of Responsible Entity Download
  • Reports and Resources

    International Ethical Fund

    • Monthly Reports
      December 2020 - Quarterly report Download
      November 2020 - The reflation trade Download
      October 2020 - Meaningfully differentiated  Download
      September 2020 - An unnatural situation for capital markets Download
      August 2020 - Healthy growth prospects at the most attractive valuations Download
      July 2020 - A time to stick to fundamentals Download
      June 2020 - Quarterly wrap up and a look to the future Download
      May 2020 - Events that could shake any investor Download
      April 2020 - Outperformed the strongest market since 1987. Where to from here? Download
      March 2020 - Finding opportunities in market crashes Download
      February 2020 - Achieving true diversification in the face of market uncertainty Download
      January 2020 - Minimising Volatility is too often overlooked Download
      December 2019 Download
      November 2019 - Renewed focus on emerging markets Download
      October 2019 - The continued rise of equity market valuations Download
      Quarterly Report September 2019 Download
      Monthly Report August 2019 Download
      Monthly Report July 2019 Download
      Quarterly Report June 2019 Download
      Monthly Report May 2019 Download
      Monthly Report April 2019 Download
      Quarterly Report March 2019 Download
      Monthly Report February 2019 Download
      Monthly Report January 2019 Download
      Quarterly Report December 2018 Download
      Monthly Report November 2018 Download
      Monthly Report October 2018 Download
      Quarterly Report September 2018 Download
      Monthly Report August 2018 Download
      Monthly Report July 2018 Download
      Quarterly Report June 2018 Download
      Monthly Report May 2018 Download
      Monthly Report April 2018 Download
      Quarterly Report March 2018 Download
      Monthly Report February 2018 Download
      Monthly Report January 2018 Download
      Quarterly Report December 2017 Download
      Monthly Report November 2017 Download
      Monthly Report October 2017 Download
      Quarterly Report September 2017 Download
      Monthly Report August 2017 Download
      Monthly Report July 2017 Download
    • Financial Reports
      Annual Report to 30 June 2020 Download
      Annual Report to 30 June 2019 Download
      Interim Report to 31 December 2018 Download
      Annual Report to 30 June 2018 Download
      Annual Report to 30 June 2017 Download

     

  • Ratings and Awards
    Ratings
    Lonsec Investment Grade* Click to View
    Zenith Recommended** Click to View
    SQM Superior*** Click to View

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

    *The Lonsec Rating (assigned April 2019) 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.

    For further information regarding Lonsec's Ratings methodology, please refer to our website at: http://www.beyond.lonsec.com.au/intelligence/lonsec-ratings.

    **The Zenith Investment Partners ("Zenith") Australian Financial Services License No. 226872 rating (assigned November 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.

    ***SQM Research is an investment research firm that undertakes research on investment products exclusively for its wholesale clients, utilising a proprietary review and star rating system. Information contained in this document attributable to SQM Research must not be used to make an investment decision. The SQM Research rating is valid at the time the report was issued (2 April, 2019), however it may change at any time. While the information contained in the rating is believed to be reliable, its completeness and accuracy is not guaranteed. The SQM Research star rating system is of a general nature and does not take into account the particular circumstances or needs of any specific person. Only licensed financial advisers may use the SQM Research star rating system in determining whether an investment is appropriate to a person’s particular circumstances or needs. You should read the product disclosure statement and consult a licensed financial adviser before making an investment decision in relation to this investment product. SQM Research receives a fee from the Fund Manager for the research and rating of the managed investment scheme.

    Awards

    The Pengana International Fund - Ethical has been certified by RIAA according to the strict operational and disclosure practices required under the Responsible Investment Certification Program. See www.responsibleinvestment.org for details.*


    *The Responsible Investment Certification Program does not constitute financial product advice. Neither the Certification Symbol nor RIAA recommends to any person that any financial product is a suitable investment or that returns are guaranteed. Appropriate professional advice should be sought prior to making an investment decision. RIAA does not hold an Australian Financial Services Licence.