Structured investments

Pengana's structured investments give investors the opportunity to access investment portfolios tailored to their specific risk and return objectives.

Overview

Pengana Structured Investments Pty Ltd (ABN 96 167 888 173) ("PSI") is an Australian private company that was established for the sole purpose of issuing investment products. It has entered into an arranger agreement with Pengana Capital Group Ltd (ABN 43 059 300 426, AFSL 226566). Under this agreement, Pengana Capital will design, structure and arrange the issue of innovative investment products for discerning investors. These products are developed in consultation with clients, advisers and private bankers in order to ensure that they are relevant, unique and complement Pengana's range of funds.

About structured investments

Structured investments provide investors with opportunities to address specific objectives, to adjust asset allocation or simply enhance portfolio structure.

Structured investments typically combine debt securities with derivative instruments creating exposure to underlying asset classes such as equities, commodities, currencies or interest rates. These investments may be tailored to allow you to:

  • Express a market view (bullish, bearish or market neutral);
  • Complement an investment objective (conservative, moderate or aggressive);
  • Hedge an existing position; and
  • Efficiently gain exposure to asset classes and specific investment themes that may not be readily available with a direct investment in the underlying asset.

Characteristics of structured investments

Structured investments are typically originated by investment banks and come in a variety of forms. In general the key characteristics of a structured investment are:

Fixed term: Structured investments generally have a specified maturity date or term, which can be as short as three to six months or as long as 15 to 20 years. Investors should consider the maturity of the offering based on their own view of the markets and their anticipated future income and liquidity needs.

Formula based returns: Structured investment returns are based on specific formulas that are designed to a particular market outlook or market view. Investors know from the outset how the performance of the underlying asset will determine their potential return or potential loss, provided that the investment is held until maturity. If redeemed prior to maturity, the value of the securities could be significantly less than the initial investment.

Potential to generate outperformance: Structured investments can be designed to potentially generate returns in excess of a specific benchmark within a range of performance.

Credit risk: All payments on structured investment products, including the payment of principal at maturity (where provided for by the terms), are subject to the issuer's credit risk.

What is different about Pengana's offering?

Pengana will evaluate all opportunities in order to determine if they are worth pursuing, and if a structured product is the most effective means of delivering the exposure. Pengana is a funds management business and not a dedicated issuer of structured products, so we do not feel compelled to continually issue structured products, if this is not the most appropriate structure to deliver an investment opportunity to investors.

We are a non-aligned provider drawing on the pricing and structuring capabilities of a wide range of local and international market participants. We do not run proprietary trading books and accordingly have no incentive to develop structures which ’suit the book’.

Pengana only deals with banks with investment grade credit ratings and has developed a credit enhancement structure that has the effect of passing through the credit ratings of the pricing counterparties to the investors.

Risks to consider

A structured investment involves a variety of risks and there is no guarantee that an investment will make a positive return. These risks may include, but are not limited to: fluctuations in the price, level or yield of underlying instruments; limits on participation in any appreciation of the underlying instrument; liquidity constraint; and conflicts of interest.

Before you invest, make sure to thoroughly review the offer documentation for a comprehensive description of the risks and considerations associated with the investment.

Current offers

At Pengana, we are constantly on the lookout for investment opportunities that complement not only our existing fund offering but importantly the Pengana investment philosophy and demand from investors. We engage our clients in order to understand their investment challenges and then, where appropriate seek to design efficient structures that make sense in the current environment.

Please subscribe to our updates if you would like to stay informed about future offers and opportunities.

Current Financials

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Previous offers

Low Volatility – US Equity Series 1&2 (Issue Date September 2014).

  • Reports & Resources
    Product Disclosure Statement Download
    Client Brochure Download
    Reference Asset (Price & Product Detail) Read more
  • Performance

    The following performance information is for existing investors only. This information is indicative only, may not be current and is subject to change without notice. Pengana Deferred Purchase Agreements are designed as “buy-and-hold until maturity” investments. This is not a quote or an offer to buy-back your investment. Please refer to the PDS for the process and associated risks and costs should you want to request the Issuer to buy-back your units prior to maturity.

    The indicative unit price may be materially higher or lower than any buy-back price that you may actually receive if you request the Issuer to buy-back your units prior to maturity. Pengana is not bound by these prices and is not liable to cover any difference between the indicative unit price and the amount actually payable should you request the Issuer to buy-back your units prior to maturity.

    Last update Series name Maturity date Reference asset Initial FX rate Current FX rate Asset starting level Current asset level Indicative unit price
    30/10/2017 USD Series 2 03/19/2018 SPLV 0.89415 0.7656 USD34.932 USD46.53 A$1.33
  • Research
    Ratings
    SQM Superior* Click to View

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

    *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 (10 June, 2014), 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.

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