The Pengana Australian Equities Fund aims to enhance and preserve investor wealth over a 5 year period1 via a concentrated core portfolio of principally listed Australian securities. The Fund is managed out of Sydney, Australia and uses fundamental research to evaluate investments capable of generating the target return over the medium term. Essentially we are in the business of seeking to preserve capital and make money – We are not in the business of beating the market.
Since inception of the Fund on the 1st of July 2008 the Fund has generated a return of 11.8%2 p.a., rewarding investors with 8.0%2 p.a. above the Reserve Bank Cash Rate of 3.8% p.a. and against a backdrop of returns from the Australian All Ordinaries Accumulation Index ("the Share Market") of 4.4% p.a. over the same period. More recently our cautious approach has been validated by the recent retracement of equity valuations.
The Fund generated a positive return of 0.9% during the quarter ended 30th September. By way of comparison the Share Market was down -0.3% in the ongoing low interest rate environment (+0.6%).
