Hunter Hall and Pengana – what’s changed?

In June shareholders voted to approve a merger of Hunter Hall and Pengana. For investors in the Hunter Hall Value Growth Trust, Hunter Hall Global Equities Trust and Hunter Hall Global Value, this means their capital will now be managed by Pengana’s International Equities team. This article outlines the differences between the Hunter Hall and Pengana investment processes.

Investment objectives

1. Capital appreciation – no one invests not to make money and we understand that.
2. Avoid drawdowns – we want to avoid big losses.
3. Reduce volatility – the path you take does matter. Studies have shown that investors often under perform the funds they invests in by selling low and buying high.

What’s changed?

• The funds will not invest in companies with a market cap of less than $1.5 billion
• The Hunter Hall portfolio construction process aimed to identify ‘best ideas’. The Pengana process aims to find stocks that work ‘best together’ within a portfolio.
• The new portfolio will not hold stocks that have ‘binomial’ outcomes
• There is a smaller exposure to Australian equities

An integral element of the portfolio construction process is the division of stocks into three segments: Core, Cyclical and Opportunistic. Core stocks, which will always represent 60-80% of the Fund, provide stability, while stocks that the investment team classify as Cyclical or Opportunistic provide the opportunity for material upside.

Ethical approach remains

Pengana International Equities has always screened out companies that may harm people, animals or the environment. As part of the transition the Hunter Hall funds will retain the negative ethical screen in its entirety.

You’d have to pay me not to own this stock

Steven Glass presents the investment case for the highest conviction holding in the Pengana International Equities Fund. Click Here

6 core ingredients of the perfect portfolio

Steven Glass runs through a 6 point checklist that the Pengana International Equities team use when looking for new investment ideas. Click Here