International Fund - Ethical Opportunity

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

Investment strategy

The Pengana International Fund - Ethical Opportunity aims to invest 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 sectors:

  • the manufacture or sale of weapons and weapon components,
  • tobacco manufacture,
  • gambling outlets or systems,
  • intensive animal farming,
  • animal testing for cosmetics,
  • activities that give rise to human rights violations,
  • unremediated destruction of the environment,
  • uranium mining and nuclear reactors, and
  • fossil fuel exploration, production, refining, storage and transportation.

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.

This Fund is currently closed to new investors, however existing investors can make additional payments or redeem their investment as per normal.

Benefits of investing

Skilled investment team. The investment team has over 90 years of combined experience investing in international 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 Opportunity

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    Performance at June 2018
    1 MTH 1 YEAR 3 YEARS 5 YEARS Since Inception
    International Fund - Ethical Opportunity and strategy 0.75% 13.16% 9.90% - 9.90%
    MSCI All Country World Total Return Index (net, AUD) 1.86% 14.96% 9.62% - 9.62%
    Outperformance vs. MSCI -1.11% -1.80% 0.28% - 0.28%

    From July 2017, performance figures are those of the Pengana International Fund - Ethical Opportunity 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 Opportunity. From July 2017, the Pengana International Fund - Ethical Opportunity has been managed by the same team and with the same strategy as the Pengana International 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 Opportunity 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 Opportunity please refer to the unit price history section below.

    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 Fund, Pengana International Fund - Managed Risk, 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:

    Closed to new investors

    Recommended timeframe:

    Three or more years

    Inception date:

    29 November, 2001

    Benchmark:

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

    Management fee (incl GST):

    1.5% pa

    Performance fee:

    Nil

    Buy/sell spread:

    0.25% for both applications and redemption

    Entry/ exit fees:

    Nil

    Fund pricing:

    Daily

    Distribution frequency:

    Twice yearly (June and December)

    Typical number of stocks:

    30-50

    APIR code:

    HHA0002AU

  • Unit Prices
    Unit Prices History Table
    Date Application Redemption Distributions
    19 Jul 2018 2.1074 2.0947 -
    18 Jul 2018 2.1046 2.0920 -
    17 Jul 2018 2.0971 2.0846 -
    16 Jul 2018 2.0822 2.0698 -
    13 Jul 2018 2.0804 2.0680 -
    12 Jul 2018 2.0837 2.0712 -
    11 Jul 2018 2.0784 2.0659 -
    10 Jul 2018 2.0726 2.0602 -
    09 Jul 2018 2.0645 2.0521 -
    06 Jul 2018 2.0611 2.0487 -
    05 Jul 2018 2.0647 2.0523 -
    04 Jul 2018 2.0569 2.0446 -
    03 Jul 2018 2.0635 2.0511 -
    02 Jul 2018 2.0653 2.0529 -

    Download Unit Prices

    A new strategy was implemented for the Global Equities Trust from 1 July 2017 by the Pengana team. The unit price history prior to 1 July 2017 refers to the previous strategy.

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    A new strategy was implemented for the Global Equities Trust from 1 July 2017 by the Pengana team. The unit price history prior to 1 July 2017 refers to the previous strategy.

  • 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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    Ronald Yu
    Ronald Yu

    Equity Analyst

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    Tim Blake
    Tim Blake

    Equity Analyst

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    Ryan Fisher
    Ryan Fisher

    Equity Analyst

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  • 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

    Pengana International Fund - Ethical Opportunity

     

  • Ratings and Awards
    Ratings
    Lonsec Investment Grade* Click to View

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

    *The Lonsec Rating (assigned July 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.

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

    Awards

    The Pengana International Fund - Ethical Opportunity 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.