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 trying to beat the market.
Since inception the Fund has generated a return of 11.7%2 p.a., rewarding investors with 8.2% p.a. above the Reserve Bank Cash Rate of 3.5% p.a. The investment environment has been volatile with the Australian All Ordinaries Accumulation Index ("the Share Market") returning only 4.5% p.a. over the same period. Importantly the Fund has maintained its track record of capital preservation in Real terms (greater than inflation) in Australian Dollars, in every year since inception.
The Fund had a pleasing quarter to December 2015, returning 7.8% for the quarter. By way of comparison the market generated a 6.6% return while the RBA cash rate remained at record lows returning 0.5% for the quarter. The fund, however, had a disappointing December, returning 0.2% for the month, compared to a 2.6% return for the market.
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