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

By: Australian Fund Monitors
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Report Date16 October 2010
ManagerPengana Capital
Fund NamePengana Global Small Companies Solution
StrategyEquity Long
Latest Return DateSeptember 2010
Latest Return9.80%
Latest 6 Months5.29%
Latest 12 Months14.53%
Latest 24 Months4.93%
Annualised Since Inception-3.48%
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 of Fund produced a strong return for the month as markets ignored the double dip recession threats in the US and investors reacted positively to speculation that the Federal Reserve will commence another round of quantitative easing.

The fund's Asia ex-Japan manager produced the best return of the month with a gain of +15%, followed by North America's manager with +11.1%. Europe's was not far behind with a return of +9.4% while Japan's trailed the field with a return of +3.2%.
More Information» View detailed profile of this fund

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