Pengana LIC back in black with $24.6m FY18 profit
Pengana International Equities Limited, an active investor in ethically screened global equities, has posted a profit of $24.6 million after tax for the year to 30 June 2018, a turnaround from the $22.9 million loss recorded in the prior year.
The result was driven by a strong investment performance of the portfolio throughout the year combined with a significant reduction in costs, the listed investment company (LIC) told the Australian Securities Exchange.
“It is pleasing to report that this proven strategy, which is designed to generate long-term consistent returns whilst reducing both volatility of returns and the risk of losing capital, delivered on its objectives in 2018,” the LIC’s chairman, Frank Gooch said.
The LIC declared a final dividend of 3.5 cents per share, franked at 27.5 per cent, on the back of total investment income of $39.9 million, up 260 per cent on the prior year.
Russel Pillemer, chief executive of Pengana Capital Group, said the revamped investment strategy managed by Pengana International’s chief investment officer, Jordan Cvetanovski and the board’s focus on corporate expenses had delivered a good outcome for shareholders.
Pillemer said the portfolio continues to be well placed to not only deliver long-term consistent returns, but also protect investors against “significant negative market events”.
The strategy’s total shareholder return for the year ending 30 June 2018 was 11.6 per cent, taking into account the 5 per cent increase in the LIC’s share price, fully franked dividends of 7 cents a share paid over the course of fiscal 2018 and the 0.8 cents a share market value of the options at 30 June 2018.
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