Pella Global Generations Fund
Pella seeks to construct a portfolio with a superior growth/valuation relationship and quality to the Market by targeting companies that are growing, trading on attractive valuations, generate strong returns on capital, and have strong ESG credentials.
The Pella Global Generations Fund is managed for AUD-returns. It is a portfolio of 30-50 highly cash flow generative businesses that are growing, attractively valued with fortress balance sheets and outstanding Environmental, Social and Governance ("ESG") credentials.
Aims to sustainably and consistently deliver greater AUD returns, lower volatility, and superior ESG to the Benchmark.
Key Benefits
- Access to a manager with a proven philosophy and process for selecting investments and constructing a portfolio.
- Broad exposures as the portfolio seeks investments across geographies, industries, and company sizes.
- Portfolio targets superior ESG characteristics.
Pella aims to beat the Market on all the following measures:
- Returns – deliver greater returns than the Market;
- Volatility – target lower volatility of returns than the Market;
- Sustainability – superior Environmental, Social & Governance to the Market.
Pella believes it is possible to consistently generate excess returns by investing in highly cash flow generative companies with favourable outlooks that are trading at attractive valuations. The Fund’s responsible investment guidelines govern the manager’s ethical and Environmental, Social and Governance (ESG) processes and engagement actions.
The Fund’s investment team reviews scores of investment opportunities as an integral part of the idea generation, company assessment and portfolio management processes. An understanding of the opportunities’ fundamentals, ESG and outlooks are developed using deep fundamental research.
The investment team continually monitor all positions and prospective positions. Existing positions are exited if they no longer satisfy our investment criteria, breach risk management requirements, and/or Ethical/ESG guidelines or alternatively, if a superior candidate is identified.
The process targets a portfolio that should on aggregate be growing faster and priced at a discount to the broader equity market. In addition the aggregate ESG characteristics are targeted to be superior to the Benchmark.
Indicative Strategic Asset Allocation
Pella aims to manage the Fund within the following guidelines:
- Typically 30 to 50 securities
- 80%-100% invested into the securities
- 0%-20% held in cash and cash equivalents
The Fund can invest in securities that are not part of the Benchmark.
Dollar General
CME Group
United Health
CIGNA
Deutsche Boerse
Alphabet
Novo Nordisk
JD Sports
Microsoft
ASML
*as at 30 June 2022
Pella's Segmentation Strategy is a critical part of its process and involves dividing all companies in the portfolio in three segments (Core, Cyclical, and Innovation) to facilitate broad exposures in a risk-controlled manner.
The "Core" of the Fund represents over 60% of the portfolio and targets companies offering stability and growth, forming the bedrock of the portfolio.
"Cyclical" companies represent a maximum of 30% of the Fund. These companies benefit from powerful shorter term cycles, allowing the portfolio to respond to changing economic dynamics.
"Innovation" offers exposure to innovative, fast growing, and distruptive businesses in a risk controlled way with a maximum of 20% of the fund allocated to this segment.
Pella is a global socially responsible investor seeking high quality companies with favourable valuations and superior ethical and Environmental, Social and Governance (ESG) credentials with long term aims to outperform the benchmark. Pella has a strong focus on risk management.
Process
Pella's proprietary process involves 12 inputs divided into four stages. It is highly repeatable and has been successfully applied across several funds and market conditions since 2004.
Pella's Segmentation Strategy sits at the centre of the process. This strategy helps ensure Pella's funds offer broad exposures while simultaneously providing a risk budget.
Structure
Pella is structured to be fully aligned with our targets and stakeholders. All Pella employees are shareholders in the company and our policy is for employees to have all their global equities exposure in Pella's funds. Our goal is to ensure we do well only when our clients do well.
Jordan Cvetanovski was a partner and Portfolio Manager at Carmignac Gestion managing European and Emerging market strategies and have over 20 years' of investment experience.
He was rated AAA by Citywire and his funds were top performers in their categories. Jordan has over twenty years’ experience in managing money.
Prior to establishing Pella Funds Management, Jordan founded the Pengana International Equities strategies in Sydney and was the CIO and Portfolio Manager between 2015 – 2021.
Jordan has held Portfolio Management roles at Robeco and was an Investment Analyst at Platinum Asset Management and Bankers Trust. Pella’s investment philosophy and strategy is the same approach first established by Jordan in 2004. The strategy has been consistent and has been successfully applied across different market conditions for over 17 years.
Jordan holds a B.Engin(Hons) and B.Econ from the Australian National University.
Steven has more than 20-years of investment experience. He co-founded the Pengana International Equities and Pengana International Equities - Ethical strategies.
Prior to that Steven was a Portfolio Manager at Hunter Hall International.
Steven holds a B.Comm (Acct/Fin) and a M.Comm (Adv. Fin) from the University of New South Wales and is a CFA charterholder.
Joy has built her career in funds management over the last 15 years. Prior to joining Pella, Joy was the Executive Director of Pengana’s International Equities division. She has held roles as a relationship manager for Allan Gray, investment analyst for State Street Bank and at Dimensional Fund Advisers where she worked with the institutional distribution team.
Joy holds a B.Econ and a B.Comm from the University of New South Wales specialising in Econometrics, Finance and Business Law.
Ryan has more than 25-years of investment experience. Prior to joining Pella he was an Investment Analyst in the Pengana International Equities strategies and before that Ryan spent 16-years at Goldman Sachs where he was a top rated sell-side diversified financials analyst.
Ryan holds a B.Econ (Actuarial Studies) and a M.Econ (Actuarial Studies) from Macquarie University
Ronald has more than 10-years of international equities investment experience. Prior to joining Pella he was an Investment Analyst in the Pengana International Equities strategies and before that he worked as an Investment Analyst at Morphic Asset Management.
Ronald holds a B.Comm/B.Law from the University of New South Wales and is a CFA charterholder.
Relevant Documents
You should read the PDS, TMD (if applicable) or any Investment Memorandum (or other offer documents) related to this product before making an investment decision. These documents (if available) can be found at https://www.pellafunds.com/, or if this is a "wholesale investor only" investment, can be viewed by contacting the Product Issuer identified on the aforementioned website.
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The issuer of this product is identified at the top of this page. The PDS and target market determination for the product are available in the Documents section of this listing. Prospective investors should consider the PDS before deciding to acquire the product. This product listing was vetted by and approved by the product issuer identified above before publishing. Investment Markets (Aust) Pty Ltd AFSL 527875 (IM) is not the issuer of the product.
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