Pengana’s Global Small Companies Solution fund lost 1.7% in November and has fallen 34.2% over the last three months. The fund benchmark is an equally weighted combination of returns available from each of the three geographic regions that it invests in: North America, Europe and Asia. The fund outperformed this measure by 6% in November but has underperformed by 1.2% over the three months.
The manager believes that small companies are now attractively priced with good potential in the Asian region. Research conducted by Pengana shows that values have fallen sharply while earnings remain relatively healthy so the manager will be looking to add another Asian small cap specialist to its team over coming months.
