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19 May 2010 - Performance Report: Pengana Global Small Companies Solution

By: Australian Fund Monitors
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Report Date18 May 2010
ManagerPengana Capital
Fund NamePengana Global Small Companies Solution
StrategyEquity Long
Latest Return DateApril 2010
Latest Return4.60%
Latest 6 Months17.55%
Latest 12 Months40.51%
Latest 24 Months-14.24%
Annualised Since Inception-3.93%
Inception Date01 November 2005
FUM (millions)AU$29
Fund OverviewGlobal small companies have the potential to provide attractive returns to investors. Small companies should perform well relative to the broader market over the long term due to their greater risk premium. Small cap investment managers have also demonstrated a significant ability to outperform their benchmarks within this relatively inefficient asset class.

The Fund uses a multi manager approach, investing with regional small company investment specialists to produce a global portfolio. To maximise the returns generated the Fund uses active investment managers with portfolios that are not overly diversified (the Fund will generally have exposure to between 40 and 80 stocks in each region).
Manager CommentsPengana's Global Small Companies Fund returned 4.6% in April, taking the fund's year to date return to 12.6%.

The manager says that the major contribution to April's performance came from stock selection in Asia, as well as Japan and Europe. The US portfolio underperformed its benchmark.

Looking ahead the manager is concerned about macroeconomic issues, centering around the over-leveraged balance sheets of several European countries, which could turn into risks for the worlwide economic recovery.
More Information» View detailed profile of this fund

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