Pengana International Ethical Opp (HHA0002AU) Report & Performance

What is the Pengana International Ethical Opp fund?

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.

  • Long investment only, benchmark independent.
  • Typically holds 30 – 50 stocks.
  • 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.
  • Integration of ESG factors into the research process directs investments to well-managed, responsible and progressive companies.

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For Pengana International Ethical Opp

Pengana International Ethical Opp Fund Commentary September 30, 2023

• Global equity markets weakened further during September, as the global economy continues to slow under the pressure of higher interest rates

• Longer-term bond yields increased upon fears that persistent inflationary pressures will keep interest rates elevated for an extended period, which particularly impacted growth stocks

• The portfolio returned -5.9% in September, while the benchmark returned -3.6% Global share markets again moved lower in September, as persistent inflation increased the expectation that interest rates would remain elevated for an extended period. This helped push up longer-term government bond yields, which weighed on share prices.

US inflation remains persistent, increasing in August to 3.7% year-on-year from 3.2% in July. The US dollar increased by 2.5% against a basket of key trading partners’ currencies in September. This reflected growing expectations that the US interest rate will be kept at a premium over those of other major currencies. Economic growth data remains mixed, with the picture in North America and Europe being one of gradual improvement, yet still consistent with contraction.

China’s manufacturing activity continues to expand, although the broader ‘re‑opening’ following the lifting of its zero-COVID strategy has now largely stalled. Consumer spending remains sluggish, as the highly leveraged property market continues to slow the economy. Travel and entertainment continue to support economic activity in the region.

The Fund retains its focus on dynamic growth stocks whose positive revisions to earnings per share (EPS) drive outperformance as global economic growth moderates. The Fund continues to overweight information technology, health care, and consumer discretionary, while the largest underweight sectors are financials, energy, and materials.

The surge in long-term global bond yields last month drove an equity market switch out of growth stocks – which are more sensitive to changes in yields – and into value stocks. This led global growth stocks to underperform value by around 2.7% during September. The Fund underperformed its benchmark, but by a smaller margin of 2.3%.

Strong stock performance in industrials contributed to relative returns. Weak stock performance in health care, financials and information technology were the main detractors.

US-based luggage manufacturer and retailer Samsonite continued to perform well after reporting second quarter earnings which were ahead of market expectations. The company continues to benefit from the strong growth in global travel.

Novartis is a Swiss-based diversified global pharmaceutical company with a focus on oncology, immunology, cardiovascular, and neurology. It performed well over the last month in anticipation of the spin-out of its biosimilar business Sandoz, which will effectively leave Novartis as a pure-play pharmaceutical stock. Furthermore, the Fund’s tracking of pharmacy script data for its key drug Kisquali – which remains ahead of consensus expectations – supports the positive outlook.

READ HISTORICAL PERFORMANCE COMMENTARIES

Product Snapshot

  • Performance Review
  • Product Overview
  • Peer Comparison
  • Product Details

Performance Review

Fund Name Last Month
? Returns after fees in the most recent (last) month).
3 Months Return
? Returns after fees in the most recent 3 months.
1 Year Return
? Trailing 12 month returns.
3 Years Average Return
? Average Annual returns from the last 3 years.
Since Inc. Average Return
? Average (annualised) returns since inception
1 Year Std. Dev. (Annual)
? The standard deviation (or annual volatility) of the last 12 months.
3 Years Std. Dev. (Annual)
? The average standard deviation (or annual volatility) from the last 3 years.
Since Inc. Std. Dev. (Annual)
? The average standard deviation (or annual volatility) since the fund inception.
1 Year Max Drawdown
? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
3 Year Max Drawdown
? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Since Inc. Max Drawdown
? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Pengana International Ethical Opp0.33%-1.79%34.74%2.02%6.67%16.63%20.94%12.87%-5.19%-37.12%-42.99%

Product Overview

Peer Comparison

Product Details

Product Due Diligence

What is Pengana International Ethical Opp

Pengana International Ethical Opp is an Managed Funds investment product that is benchmarked against Developed -World Index and sits inside the Foreign Equity - Large Growth Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Pengana International Ethical Opp has Assets Under Management of 62.41 M with a management fee of 1.5%, a performance fee of 0.00% and a buy/sell spread fee of 0.6%.

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Comments from SMSF Mates

Historical Performance Commentary

Performance Commentary - August 31, 2023

During August, the Fund underperformed the benchmark, the MSCI All Country World Index by 2.0%.

Growth-inclined stocks weakened upon expectations that interest rates would need to be higher for longer to bring inflation back under control. Global value stocks outperformed growth by 1.9% in August.

The underperformance of growth companies occurred despite the continued moderation in inflation. The US Core Personal Consumption Expenditure (PCE) Price Index rose 4.6% year-on-year in August, down from the 4.8% July increase.

The more negative market sentiment followed a speech by Federal Reserve (Fed) Chair Jerome Powell at the Federal Reserve’s annual Jackson Hole conference. He detailed the Fed’s plan to slow inflation through higher interest rates, which reflected a willingness to tolerate higher unemployment and slower economic growth.

This shifted market expectations towards a higher peak in interest rates next year and a longer pause before eventual monetary easing. This brought a 0.60% increase in the yield of the interest rate-sensitive two-year US Treasury bond, wider credit spreads and lower equity market valuations.

The US dollar continued to strengthen in August, pressuring European and emerging market economies. Meanwhile, commodity prices, except for European natural gas prices, continued to moderate, with the price of Brent crude oil falling by 5%.

Economic news varied by region, with stronger July US manufacturing and labour market data, while Europe and China continued to deteriorate. Eurozone purchasing managers’ data were weaker in July, indicating the sector is contracting, while regional inflation continues to accelerate (rising 4.3% year-on-year in August, from 4.0% in July).

Performance Commentary - July 31, 2023

Performance Commentary - August 31, 2022

Performance Commentary - July 31, 2022

Performance Commentary - June 30, 2022

Performance Commentary - May 31, 2022

Performance Commentary - April 30, 2022

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