The Pengana International Fund – Ethical aims to provide exposure to an ethically screened diversified portfolio of highly cash-generative and growing global companies purchased at compelling valuations.

Read the media release detailing the announcementhere.

The Pengana International Fund – Ethical invests in a portfolio of global companies, diversified across geographies, industries and company sizes.

The Fund is long-only, benchmark independent and typically holds 30-50 companies. The mandate allows investment across geographies, industries and company sizes. The companies considered for inclusion in the portfolio demonstrate large and growing free cash flow generation, and are priced attractively relative to their cash flow.

The portfolio is created from the 30-50 stock ideas that work best together, rather than just the 30-50 best ideas.

The Fund utilises a negative screening process which seeks to avoid investment in companies that derive operating revenues from direct and material business involvement in the following sectors:

the manufacture or sale of weapons and weapon components,

activities that give rise to human rights violations,

fossil fuel exploration, production, refining, storage and transportation.

The investment team develops an understanding of the opportunities using detailed research covering financial statements, company meetings and external research. Companies that meet the investment criteria are divided into three segments:

Core (60-80%): are stable and growing businesses that generate consistent returns.

Cyclical (0-30%): businesses operating in cyclical industries that are posed for a cyclical upturn, which is not recognised in the share price.

Opportunistic (0-20%): are unique, company specific situations that offer attractive potential upside.

Skilled investment team.The investment team has over 90 years of combined experience investing in global equities and has developed a successful and repeatable investment process.

A truly active fund.A relatively concentrated portfolio that is selected purely on investment merits rather than index weight.

Investment in high quality businesses at compelling valuations.The Fund aims to invest in businesses with compelling business models, that consistently generate large and growing sums of cash.

Focus on risk and return.The portfolio focuses on 30-50 stocks that work together, with sufficient concentration to deliver returns and sufficient diversification to reduce risk.

Investment approach that is suitable across market environments.The investment team invests across different geographies, industries and company sizes and can adjust to changing market environments.

Ethical process.Negative ethical screens exclude industries that, in our opinion, can cause harm to people, animals or the environment. Integration of ESG factors into the research process directs investments to well-managed, responsible and progressive companies.

From July 2017, performance figures are those of the Pengana International Fund – Ethical class A units (net of fees). Between July 2015 and June 2017 (shown in the green shaded area above), performance figures have been recalculated by adjusting the Pengana International Funds (ARSN 610 351 641) net returns to reflect the management fee of the Pengana International Fund – Ethical. From July 2017 the Pengana International Fund – Ethical has been managed by the same team and with the same strategy as the Pengana International Equities Fund. The Pengana International  Funds net track record data is historical. Past performance is not a reliable indicator of future performance. The value of the investment can go up or down.

A new strategy was implemented for the Pengana International Fund – Ethical from 1 July 2017 by the Pengana team. The financial information refers to the new strategy. For full performance history of the prior strategy of the Pengana International Fund – Ethical please refer to the unit price history section below.

The equally weighted portfolio is calculated by compounding the equally weighted monthly returns of the Pengana funds that were open during each month.  The calculation includes the following funds: Pengana Emerging Companies Fund, Pengana Australian Equities Fund, Pengana Absolute Return Asia Pacific Fund, Pengana Global Small Companies Fund, Pengana International Fund, Pengana International Fund – Managed Risk, Pengana PanAgora Absolute Return Global Equities Fund.  Net performance figures are shown after all fees and expenses, and assume reinvestment of distributions. Past performance is not a reliable indicator of future performance, the value of investments can go up and down.

MSCI All Country World Total Return Index (net) in $A

A new strategy was implemented for the Pengana International Fund – Ethical from 1 July 2017 by the Pengana team. The unit price history prior to 1 July 2017 refers to the previous strategy.

A new strategy was implemented for the Pengana International Fund – Ethical from 1 July 2017 by the Pengana team. The unit price history prior to 1 July 2017 refers to the previous strategy.

Complaints resolution process for retail clients who invest through Platforms

Attribution Managed Investment Trust regime changes – 4 December 2017

Notification to investors regarding the proposed change of responsible entity from Pengana Investment Management Limited to Pengana Capital Limited (both part of the Pengana Capital Group)

Website notice regarding change of Responsible Entity

This report may only be accessed by holders of Australian Financial Services Licences and their authorised representatives.

*The Lonsec Rating(assigned April 2019) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445. The Rating is limited to General Advice (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold Pengana Capital product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria.

For further information regarding Lonsecs Ratings methodology, please refer to our website at:

**The Zenith Investment Partners(Zenith) Australian Financial Services License No. 226872 rating (assigned November 2018) referred to in this document is limited to General Advice (as defined by the Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Zenith usually charges the product issuer, fund manager or a related party to conduct Product Assessments. Full details regarding Zeniths methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at

The Pengana International Fund – Ethical has been certified by RIAA according to the strict operational and disclosure practices required under the Responsible Investment Certification Program. See for details.*

*The Responsible Investment Certification Program does not constitute financial product advice. Neither the Certification Symbol nor RIAA recommends to any person that any financial product is a suitable investment or that returns are guaranteed. Appropriate professional advice should be sought prior to making an investment decision. RIAA does not hold an Australian Financial Services Licence.

The Value Growth Trust, now known as the Pengana International Fund – Ethical, has been rated  1 global ethical/sustainable fund by a highly regarded research house.

If you are looking for an ethical/sustainable fund that aims to deliver superior risk-adjusted returns, the new Pengana International Fund – Ethical strategy may be just what you need.

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