Pengana Australian Equities Fund

The Pengana Australian Equities Fund provides exposure to a high conviction portfolio of listed Australian companies.

Fund Objective

Investment Philosophy

To protect and enhance investor wealth on a consistent and repeatable basis.

Who The Fund Suits

• Investors seeking a truly active investment
   approach, with a focus on capital
• Investors looking for genuine
   diversification benefits to other equities
• Investors seeking absolute positive
• Investors with an investment time horizon
   of at least five years

Key Benefits

• Key focus on capital preservation and
   downside protection
• Strong track record with low volatility
• Complements existing equities holdings
• Common sense investment approach
The Fund seeks to generate consistent superior investment returns using fundamental analysis to select and own securities with the following characteristics:

• Good businesses with transparent and resilient
   business models
• Competent management with a track record of
• A favourable relationship between the market
   price and the future cash flows of the business

Investment Strategy

The Fund seeks to identify good quality companies that are reasonably priced by focussing on their operating leverage, balance sheet and return to shareholders in order to identify stocks that can generate at acquisition an after tax cash earnings yield of 6-8% p.a. with strong growth for the medium term.

We undertake our own proprietary research in assessing both qualitative and quantitative factors to build a concentrated portfolio of stocks.

A focus on capital preservation is preferred to 'super' returns and cash holdings are viewed as a natural alternative when suitable equity investment opportunities cannot be identified.

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Inception Date
1 July 2008
Minimum Investment
Recommended Investment Timeframe
Five or more years
RBA cash rate
Management Fee (incl. GST)
1.025% p.a. of the Fund's net asset value, plus a capped expense recovery amount of 0.2% p.a. of the Fund’s net asset value
Performance Fee#(incl. GST)
10.25% (including GST, net of RITC) of increase in net asset value subject to the Australian cash rate and high water mark
Buy/Sell Spread
0.25% on both applications and withdrawals
Entry/Exit Fees
Fund Pricing
Distribution Frequency
Twice yearly (June and December)
Target Asset Allocation# Cash 0–100%
Equities 0–100%
Typical Number of Stocks
Zenith Rated
Lonsec Rated

Principal Portfolio Manager

Rhett Kessler

Rhett joined Pengana in October 2007, bringing with him over 18 years of experience as an investment professional.

Prior to joining Pengana he was Head of Research for IAG Asset Management (IAGAM) as well as being a Joint Portfolio Manager for various wholesale funds totalling $3.3 billion. In 2005 he successfully launched and ran the IAGAM Absolute Return Fund on which the Pengana Australian Equity Fund is based.
Prior to this he was a rated media analyst for UBS Australia, having emigrated from South Africa in 1996, where he successfully managed wholesale and retail equity portfolios as Deputy General of Investment for Liberty Asset Management.

Rhett holds bachelor degrees in Commerce and Accounting from the University of Witwatersrand, is a Chartered Accountant (SA) and a Chartered Financial Analyst.



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Pengana Capital Ltd (ABN 30 103 800 568, Australian financial services license number 226566) is the issuer of units in the Pengana Australian Equities Fund (ARSN 146 346 929) (the ‘Fund’). A product disclosure statement for the Fund is available and can be obtained from our distribution team. A person should obtain a copy of the product disclosure statement and should consider the product disclosure statement carefully before deciding whether to acquire, or to continue to hold, or making any other decision in respect of, the units in the Fund. This report was prepared by Pengana Capital Ltd and does not contain any investment recommendation or investment advice. This report has been prepared without taking account of any person’s objectives, financial situation or needs. Therefore, before acting on any information contained within this report a person should consider the appropriateness of the information, having regard to their objectives, financial situation and needs. Neither Pengana Capital Ltd nor its related entities, directors or officers guarantees the performance of, or the repayment of capital or income invested in, the Fund.

* Lonsec: The Lonsec Rating (assigned October 2013) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445. The Rating is a “class service” (as defined in the Financial Advisers Act 2008 (NZ)) or is limited to “General Advice” and based solely on consideration of the investment merits of the financial product(s). In New Zealand it must only be provided to “wholesale clients” (as defined in the Financial Advisers Act 2008 (NZ)). 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 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:

* vanEyk: van Eyk Research Pty Ltd ABN 99 010 664 632, corporate authorised representative of van Eyk Financial Group Pty Ltd ABN 28 149 679 078, AFSL 402146 (authorised representative number 408625) (van Eyk) rates investment management capabilities rather than individual products. This rating is valid as at August 2013 but can change or cease at any time and should not be relied upon without referring to the meaning of the rating, as well as the full manager report, available to subscribers at Past performance information given in this document is given for illustrative purposes only and should not be relied upon as it is not an indication of future performance. vanEykhas not directed the publication of Pengana Australian Equities Fund rating. The rating is not intended to influence you and your client’s investment decision in relation to any products managed by Pengana Capital and does not take into account your client’s individual financial situation, needs or objectives. We recommend that you and your client do not rely on this rating in making an investment decision and instead you seek advice from an appropriate investment adviser and read the product disclosure statement before making such a decision.

* Zenith: The Zenith Investment Partners (‘Zenith’) ABN 60 322 047 314 rating (assigned July 2014) referred to in this document is limited to ‘General Advice’ (as defined by section 766B of Corporations Act 2001) and based solely on the assessment of the investment merits of the financial product on this basis. It is not a specific recommendation to purchase, sell or hold the relevant product(s), and Zenith advises that individual investors should seek their own independent financial advice before investing in this product. The rating is subject to change without notice and Zenith has no obligation to update this document following publication. Zenith usually receives a fee for rating the fund manager and product against accepted criteria considered comprehensive and objective.

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