The Pengana Emerging Companies Fund was down -1.9% in January, bringing its one year return to -44.8%.
Surprisingly the Fund's poor one year return outperformed both the S&P/ASX Small Industrials Accumulation Index and the Small Ordinaries Accumulation Index, which were down -46.7% and -47.9% respectively. The Fund will remain defensively positioned, pending the outcomes of the upcoming reporting season, and given the ongoing uncertainty in Australian markets.
Another Pengana fund, the Global Resources Fund, was up +2.43% in January, following a disappointing 2008 result (down -32.87%). The Fund, which was structured with a net long position, benefited from rising Australian dollar denominated commodity prices during January. Equinox, Vale and Rio Tinto contributed positive returns to the Fund, while losses were generated in Alumina and Anglo American.
