Hunter Hall strategy no longer applies
Pengana’s Capital has told investors that the previous strategy and everything they knew about Hunter Hall and how it managed the funds will no longer apply and all the strategies will be now run by the same team that manages Pengana’s International Equities scheme.
Earlier this year, Pengana Holdings and Hunter Hall announced they would merge their businesses to create a funds management firm with a new platform for growth.
Pengana’s co-founder and chief executive, Russel Pillemer said: “Everything you knew about the way Hunter Hall managed money, the way their portfolio was set up, what was in their portfolios no longer applies.
“These portfolios are [now] being run entirely the way Pengana’s International Equities fund has managed its money for a number of years.
“So if you want to look at how the strategy is performed and what it is, take a look at Pengana’s International Equity fund strategy and you will get a very good indication of what it is that you are now invested in”
However, Pillemer stressed that there was no intention to merge investment vehicles, due to technical reasons, and that they would be continuously run as separate vehicles.
Ex-portfolio manager at Hunter Hall, Steven Glass, who is now Pengana’s head of research and portfolio manager of its International Equities Fund, stressed that the fund had three aims: “making money, avoiding losses and minimizing volatility”.
“We are an evergreen fund. We are the type of fund that you hold for the long-term, in all kinds of market conditions.
“We invest globally and are ethical fund which means we will not invest in companies that we think are harmful to the environments, animals or people.”
As far as the stock selection process was concerned, he said that the fund was focused on the growing companies with reasonable valuations, cash generation, positive tailwinds and which did not have a lot of debt.
Also, the fund has currently large exposure to Europe and small exposure to the US due to a number of world-class European firms that are at the moment cheaper than their US peers.
In terms of sectors, the fund is invested largely in IT and consumer staples, with a relatively small exposure to industrials and no holdings in energy or telcos.
AUTHOR
Oksana Patron
Recommended for you
Outflows from an Australian private markets fund manager have caused FUM at Pacific Current to decline by $1 billion in the last quarter.
Former RIAA chief executive Simon O’Connor has joined the ethical advisory panel at U Ethical Investors.
Financial services leaders are “all cashed up with nowhere to grow” when it comes to M&A activity, according to Deloitte, with 90 per cent saying they have strong balance sheets ready for an acquisition.
As fund managers are urged to diversify their product ranges, they are finding a faster way to do this is via an acquisition of existing firms but experts say it is not without potential culture clashes.
