Pengana High Conviction Equities Fund
Responsible Investing Approach
The Fund invests in a concentrated, ethically screened portfolio of not more than 20 Australian and global companies. Pengana is committed to responsible investing for the Fund and seeks to avoid investing in businesses that are, in its opinion, currently involved in activities that are unnecessarily harmful to people, animals or the environment. The Fund utilises a negative screening process which seeks to avoid investment in companies involved in such sectors as a result it does not invest in producers of tobacco, manufacturers of nicotine alternatives and tobacco-based products, or companies involved in the development and production of controversial or nuclear weapons.
Documents
Exclusions
The Fund avoids investing in tobacco producers, nicotine alternative manufacturers, tobacco-based product manufacturers, and companies involved in controversial or nuclear weapons development. Pengana uses a negative screening process to avoid investment in companies with significant revenues from activities deemed harmful to people, animals, or the environment, including alcohol, tobacco, gambling, human rights abuses, palm oil production, adult content, weapons, nuclear power, non-medical and non-regulatory animal testing, fossil fuels, securities from issuers on UN sanctions lists, and genetically modified organisms in agriculture.
| Exclusions | Full/Partial Exclusion |
Description
|
|---|---|---|
 Tobacco
|
Full | The Fund will not invest in companies that derive any revenue from tobacco growing, production or licensing of tobacco products, nicotine alternatives and tobacco-based products. |
| Partial | The Fund will not invest in companies that generate more than 15% of their revenues (aggregate) from the distribution and retail of tobacco products, nicotine alternatives and tobacco-based products. |
|
 Alcohol
|
Partial | The Fund will not invest in companies that generate more than 5% of their revenues from the production of alcohol, or companies that generate more than 15% of their aggregate revenues from the production, distribution and retail of alcohol. |
 Weapons
|
Full | The Fund will not invest in companies that derive any revenue from the manufacture, development, or production of controversial weapons or nuclear weapons. |
| Partial | The Fund will not invest in companies that generate more than 15% of their revenues (aggregate) from the production, distribution and retail of firearms and ammunition. |
|
 Fossil fuel exploration, mining and production
|
Full | The Fund will not invest in companies that derive any revenue from companies classified as "Oil, Gas and Consumable Fuels" according to the global industry classification standards. |
 Human rights abuses
|
Full | Pengana will not invest in companies with serious or systematic controversies relating to human rights violations. |
 Environmental damage
|
Full | The Fund will not invest in companies involved in palm oil production or that are involved in systematic logging related controversies. |
 Animal testing for non-medical purposes
|
Full | The Fund will not invest in companies that are involved in animal testing for cosmetics and screens out companies involved in non-medical testing. |
 Gambling
|
Partial | The Fund will not invest in companies that generate more than 5% of their revenues from ownership of the operation of gambling-related business activities, or companies that generate more than 15% of their aggregate revenues from gambling-related business activities. |
 Genetic engineering/GMO
|
Partial | The Fund will not invest in companies that generate more than 5% of their revenues from the development or growth of Genetic Engineering - agriculture. |
 Nuclear power (including uranium mining)
|
Partial | The Fund will not invest in companies that generate more than 5% of their revenues from electricity distributed from nuclear power in a given year or from 5% power generating capacity attributed to nuclear sources in a given fiscal year. |
 Adult entertainment/pornography
|
Partial | The Fund will not invest in companies that generate more than 5% of their revenues from the production of adult content, or companies that generate more than 15% of their aggregate revenues from the production, distribution and retail of adult content. |
Inclusions
Environmental, social and governance issues raised by prospective and existing investments are investigated within the investment research process. The potential financial impacts of ESG risks/opportunities are considered when determining a company's valuation and may impact the weighting of the investment in the overall portfolio. Labour standards are considered but not systematically taken into account in the selection, retention or realisation of investments. ESG considerations are not only sector and company specific but can also encompass global thematic issues such as climate change or country specific issues such as political risks. Therefore, there is not a commonly adopted rating or benchmark used to measure a company's ESG standing.
Assessing a company's corporate governance practices is an important aspect of the investment process, however, the Manager considers that there is no one single indicator with a global application that identifies when companies are failing to adopt the best corporate governance practices. Therefore, its approach to corporate governance may change according to a company's local laws, regulations, and established guidelines.
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UN Sustainable Development Goals
Conventions & Treaties
Pengana is a signatory to the United Nations-backed Principles for Responsible Investment (PRI), a voluntary global initiative to encourage investment institutions to incorporate environmental, social and governance (ESG) considerations into their decision-making and reporting practices.
| Conventions & Treaties | Aligned |
Description
|
|---|---|---|
| Principles for Responsible Investment | Yes | Signatory |
| OECD Guidelines for Multinational Enterprises | Yes | The Fund Manager's Investment Team may consult the Organisation for Economic Co-operation and Development (OECD) Principles of Corporate Governance when assessing a company's corporate governance practices. |
ESG Score
| ESG Score |
|
||
|---|---|---|---|
| Does the portfolio have an ESG score? | Not disclosed | ||
| If so, who is responsible for calculating the score? | Not disclosed | ||
| If a score is calculated, is this publicly available; i.e. displayed in monthly reports, on your website, etc.? | Not disclosed | ||
| If the portfolio has an ESG score, how often is that score recalculated to account for changes to portfolio holdings? | Not disclosed | ||
Impact Investing Score
| Impact Investing Score |
|
||
|---|---|---|---|
| Does the portfolio have an Impact Investment score? | Not disclosed | ||
| If a score is calculated, is this publicly available; i.e. displayed in monthly reports, on your website, etc.? | Not disclosed | ||
| If the portfolio has an Impact Investment score, how often is that score recalculated to account for changes to portfolio holdings? | Not disclosed | ||
| Does the fund publish its holdings publicly? | Yes | ||
Policies, Certification & Marketing
| Policies, Certification & Marketing |
|
|||
|---|---|---|---|---|
| Responsible investing policy | View Responsible investing policy document | |||
| Is the fund RIAA certified? | No | |||
| Sustainability & Responsible Investment Policy | View Sustainability & Responsible Investment Policy document | |||
Pengana High Conviction Equities Fund
Strategy Summary
The objective of the Fund is to achieve capital growth over the long term by investing in an ethically screened portfolio of Australian and international equities. The Fund primarily invests in, but is not limited to, companies listed on the Australian and international stock exchanges. The Fund can hold up to 100% cash and can hedge foreign currency exposures.Key Terms
| Status: | Open | Inception Date: | Feb 2018 |
| Strategy: | Equity Long | Style: | Growth |
| Geography: | Australia/Global | Domicile: | Australia |
| Investors: | Retail | Min. Investment: | AU$10000 |
| Mgmt. Fee: | 1.8% | Perf. Fee: | 15.38% |
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