Pengana Harding Loevner International Fund

The Pengana Harding Loevner International Fund is an International Fund targeting superior risk-adjusted returns through investing in high-quality and durable growing companies at reasonable prices.

The Pengana Harding Loevner International Fund invests in high-quality, growing companies identified through fundamental research with a long-term, global perspective.

Pengana has appointed Harding Loevner to manage the Fund.  Harding Loevner is a New Jersey-based global equity fund manager formed in 1989 with over US$86billion in Assets under Management.

Harding Loevner’s analysts search the world for companies that meet their high quality and durable growth criteria, conduct fundamental research, and then value and rate their stocks to make them available to PMs for investment.

For up to date fund statistics please find the latest monthly report here

Investors have the choice of management and performance fees

Class B - For investors looking for a set cost investment management fee with no performance fees:

• Management fee: 0.974% of the Class’ net asset value
• Performance Fee: Nil

Class E - For investors who prefer to pay a lower management fee with performance fees paid on a returns basis:

• Management fee: 0.65% of the Class’ net asset value
• Performance Fee: 15% on all performance above the MSCI All Country World Index

Investment Approach

The Fund’s investment manager uses a value-oriented investment approach to small and midcap global equities that seek to identify and invest in quality businesses that create significant value but is mispriced, overlooked or out-of-favour. The investment manager believes that unique opportunities exist due to limited available research, corporate actions or unfavourable investor perception.

Investment Process

The investment manager conducts independent analysis to generate its own investment ideas.

Investment opportunities must meet the following 5 criteria to be considered for inclusion in the portfolio:

1. A durable competitive advantage
2. Management alignment with minority shareholders
3. Strong corporate governance policies
4. Balance sheets that enable the company to self-fund if the credit markets temporarily close
5. Compelling valuations based on the company’s long-term cash flow generating potential

The portfolio construction process aims to develop portfolios that incorporate the best investment ideas from the investment manager’s research while allowing for liquidity constraints and perceived risk. The Fund’s investment manager will not typically hedge currency exposures, however, during periods of currency extremes, some currency hedging may be employed.

Indicative Strategic Asset Allocation

The Fund's investment manager aims to manage the Fund within the following guidelines:

• Typically 30 to 80 securities
• Target median market capitalisation of less than USD3billion
• 0%-20% cash and cash equivalents
• No more than 10% in a single position
• No more than 5% in securities that are not currently listed
• No more than 35% in a single industry sector
• No more than 55% in US securities
• No more than 25% in any other country’s securities

The Fund can invest in securities that are not part of the Index. The Fund's investment manager will endeavour to work within the above guidelines – however, these should be viewed as objectives only and not absolute limits.

Top Holdings can be viewed here

Latest Fund performance can be viewed here