ORAH Fund

The ORAH Fund is a fund of funds aiming to produce risk-adjusted returns in excess of a composite benchmark comprising 50% of the MSCI World and 50% of the ASX 300 Index.

To achieve the Fund’s objectives, the investment manager seeks to identify a set of specialist Underlying Funds that possess varied investment styles and strategies. This diversification is expected to result in reduced volatility and more stable returns over time. The Fund’s investments are geographically diversified with the Underlying Funds investing in assets held both  domestically and abroad.

The ORAH Fund was established in order to benefit charities supporting Jewish related causes, and all management and performance fees charged by the ORAH Fund are donated to charity.

Importantly, the donations do not dilute the investment returns to unitholders. This is due to the philanthropy of the managers of the Underlying Funds who do not charge management or performance fees for their services.

Investment Objective

The Fund targets a net of fees return exceeding that of the “Benchmark” over the suggested investment timeframe of 5 to 7 years. 

Over this period, the Fund also aims to produce a risk-adjusted return in excess of the Benchmark.

The Benchmark for the Fund is comprised 50% of the MSCI World Total Return Net World Index (AUD Unhedged) and 50% of the ASX 300 Accumulation Index. The Benchmark is a blended benchmark and is rebalanced on a monthly basis.

The Fund aims to select suitable Underlying Funds in order to achieve Benchmark outperformance.

Investment Strategy

To achieve the Fund’s objective, Pengana, as investment manager of the Fund, seeks to identify a set of specialist Underlying Funds that possess varied investment styles and strategies. This diversification is expected to result in reduced volatility and more stable returns over time. Further, it is expected that their combination in the Fund’s portfolio will lead to superior risk-adjusted returns compared to the Benchmark over time than any Underlying Fund individually.

The Fund provides Investors with exposure to a group of boutique investment managers whose Underlying Funds will primarily be domiciled in Australia. However, the Fund may hold Underlying Funds domiciled in any country. The Fund does not have a specific policy in relation to the geographical location of Underlying Funds.

These Underlying Funds will typically be actively managed and invest in equities with investment strategies including, but not limited to, long-only, long-short, absolute return and/or market neutral. However, the Fund may invest in underlying funds with any asset class focus, investment style or investment strategy.

The Fund will be geographically diversified with the Underlying Funds investing in assets held domestically and/or internationally. The Fund may hold cash directly.

Selecting Underlying Funds

The Underlying Funds which the Fund invests in and their investment managers will be listed on the ORAH Fund’s website and updated as the Underlying Funds change. The selection of Underlying Funds may change from time to time without prior notice to Investors.

Initial assessment

In assessing potential underlying funds or strategies, Pengana conducts an initial screen that considers both qualitative and quantitative factors including, but not limited to:

• An achievable investment objective with risk and return targets consistent with the Fund’s objective;
• An investment strategy and style differentiated from those of the current Underlying Funds;
• Quantitative analysis of any track record including return, risk and correlation to the Fund and Underlying Funds;
• Experience of the underlying investment management team;
• Quality of the underlying investment management company; and
• Assessment of available capacity.

In selecting Underlying Funds, there is no limit placed on the use, type or level (if any) of leverage, derivatives or short selling. These are factors considered within the above framework.

Investment Committee meeting and approval

The Investment Committee considers the inclusion of the underlying fund with reference to the Fund’s objectives, taking into account the information obtained during the ‘Initial assessment’ and 'Due diligence’ stages. Once approved, Pengana’s risk team codes the mandate monitoring tools with reference to the underlying fund’s investment guidelines.

Ongoing review

On an ongoing monthly basis, Pengana monitors the performance, risk, mandate compliance and other significant developments as they relate to the Underlying Funds and Underlying Investment Management companies. Pengana will periodically conduct due diligence on each Underlying Manager.

Investment Guidelines

Pengana does not intend for an allocation in any Underlying Fund to exceed 15% of the Fund’s Net Asset Value for a significant period of time.

Initially, the Fund will target an investment in a minimum of 8 Underlying Funds. This target can and will vary over time depending on factors including, but not limited to, the availability of managers which Pengana believes are appropriate and Pengana’s assessments of the Fund’s size, risks and returns.

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None of Pengana Capital Limited ABN 30 103 800 568 ("Pengana" or “Trustee” or “Issuer”) or any company in the Pengana Group guarantees or makes any representations as to the future performance of the ORAH Fund (‘Fund’), the maintenance or repayment of capital, income tax and other taxation consequences of investing in the Fund or any specific rate of return. An investment in the Fund is subject to investment risk, which may result in the loss of capital invested and failure to receive income. Investors should assess whether the Fund is suitable for their investment objectives and whether they should talk to their financial adviser before deciding to invest in the Fund. An investment in the Fund is only available to wholesale clients as defined under the Corporations Act or otherwise as permitted by law.