| Report Date | 26 June 2013 |
| Manager | Pengana Capital |
| Fund Name | Pengana Australian Equities Market Neutral Fund |
| Strategy | Equity Market Neutral |
| Latest Return Date | May 2013 |
| Latest Return | -1.70% |
| Latest 6 Months | 3.77% |
| Latest 12 Months | -3.77% |
| Latest 24 Months | 16.14% |
| Annualised Since Inception | 8.27% |
| Inception Date | 09 September 2008 |
| FUM (millions) | AU$15.4 |
| Fund Overview | The Pengana Australian Equities Market Neutral Fund aims to provide a net annualised return of 5-10% over cash, with a risk target of 8-10%. The Fund holds equal weights in long and short positions listed on the ASX with a majority of the stocks included in the S&P/ASX 300 Index. The manager's investment approach is premised on the belief that fundamental factors (such as earnings, cash flow and profit growth) affect stock prices, but that the adoption of quantitative techniques (i.e. computer based models) provides an advantage in assimilating and analysing this information, and building an efficient portfolio. The Fund's portfolio is constructed to be \'Market Neutral\' i.e. it aims to have little or no overall exposure to movements in the equity market. The aim of low exposure to market movements is to enhance the consistency of the portfolio's performance and to provide diversification from other market oriented investments. |
| Manager Comments | The Pengana Australian Equities Market Neutral Fund returned -1.7% during May bringing its since inception (Sept 2008) return to 8.27% pa.
Earnings Revisions was the best performing investment theme in the Fund's model followed by Momentum and Value, while Quality detracted from performance for the month. Earnings revisions captures the trend in analyst earnings forecasts over the short and medium term where stocks with upward revisions tend to outperform stocks with downward revisions. While Momentum has been the dominant investment theme for the most of this year, the Manager is now starting to see this wane as the market begins to shift its focus to the underlying fundamentals of companies with changes to earnings forecasts. |
| More Information | » View detailed profile of this fund |
