UNIT PRICE (ASX)
Key features:
- The most diversified global private credit fund on the ASX
- Targeting strong risk-adjusted returns, including a 7% p.a. cash distribution yield, paid monthly1
- Opportunity to sell quarterly at NAV3
- An asset class with historically low volatility, and low correlation to other fixed income and equity indices
Key Benefits of PCX
Access to a diversified portfolio of global private credit funds across various geographies, strategies and sectors.
Diversification
PCX is highly diversified across strategy, geography, sector, credit quality, and type of instrument.
Performance
PCX aims to deliver the strong risk adjusted returns associated with the global private credit sector, with a high degree of capital protection, as well as a stable and consistent income, which will be paid monthly.1
Liquidity
Buy and sell on the ASX2.
(global private credit is typically characterised by lengthy capital lock-ups).
Unique Stability
Option for investors to buy and sell at off-market quarterly, at NAV3.
Simplicity
PCX is a single access point to over 2,000 individual loans, across 19 Underlying Funds, sourced and rated by Mercer.
Institutional Scale
Unlock access, sourcing, research, due diligence and portfolio construction capabilities - via a unique alliance with Mercer.
Defensive investment
Global private credit has a strong track record of low volatility, attractive returns and low correlation to other asset classes such as public fixed income and equity, which can provide diversification benefits by enhancing portfolios' risk-adjusted returns. 4
Access
PCX provides exposure to difficult-to-access global private credit investments predominantly in middle market companies (being those with USD$50m-250m of annual EBITDA), typically only available to institutional clients.
Resilience
Loans are typically individually negotiated and structured, allowing the borrower to obtain legally enforceable protections. Historically, this has lead to lower default rates and higher recovery rates than other fixed income alternatives.5
Bespoke solution
Tailored by Mercer, specifically to the requirements and objectives of PCX.
Currency
PCX is hedged back to AUD mitigating the risk of foreign exchange fluctuations.
Predictability
PCX by nature, and design, aims to have lower volatility than other asset classes.
Key Risks of PCX
All investments are subject to risk which means the value of investments may rise or fall, which means that you may receive back less than your original investment or you may not receive income over a given time frame. The key risks associated with investing in PCX include investment risk, investment strategy risk, market risk, leverage risk, credit and default risk, valuation risk, currency risk, underlying manager risk and fund risk. Refer to section 8 of the PDS for a comprehensive summary of potential risks.
THE TEAM
REPORTS AND RESOURCES
- Monthly Reports
- PDS
- Documents
- Distributions
Unitholders
Ellis Varejes
Non-Executive Director and Chairman
Bachelor of Commerce, Bachelor of Laws, member of the Australian Institute of Company Directors and member of the Law Society of New South Wales.
Ellis was a director of Equity Trustees Superannuation from 2014 to 2023, a director of HUB24 Super from 2019-2023 and a director of Transmedia Asia Pacific Inc. (NASDAQ) from 1998 to 2004. He was the chief operating officer of Abacus Property Group from 2006 to 2017. Before that Ellis was a lawyer in private practice in Sydney for 25 years, working in corporate advisory, equity and debt capital markets and financial services.
Ilan Zimerman
Non-Executive Director
Bachelor of Arts and Laws as well as an MBA all from the University of the Witwatersrand, South Africa. He also holds an Applied Diploma in Corporate Governance.
Experience and expertise: Ilan is a solicitor of over 30 years standing.
Russel Pillemer
Executive Director
Bachelor of Commerce (Hons) from the University of New South Wales, Member of Chartered Accountants Australia and New Zealand
Russel co-founded Pengana in 2003 and has been Chief Executive Officer since inception. Prior to founding Pengana, Russel worked in the Investment Banking Division of Goldman Sachs in New York where he specialised in providing advice to funds management businesses. Before moving to New York, he was responsible for leading Goldman Sachs’ Australian Financial Institutions Group. He was previously Chairman of Centric Wealth Group and a Principal of Turnbull Pillemer Capital.
Special responsibilities: Chief Executive Officer and Managing Director
Katrina Glendinning
Executive Director
Bachelor of Economics from the University of Sydney, Member of Chartered Accountants Australia and New Zealand, Fellow of FINSIA, Graduate of the Australian Institute of Company Directors
Katrina has been Chief Operating Officer and Chief Financial Officer of Pengana since its inception in 2003. She is an experienced funds management professional, who has worked on a diverse range of products for more than 25 years. Prior to joining Pengana, Katrina was an Executive Vice President at BT Financial Group (‘BT’) where she held a number of roles from 1993 to 2002, including Chief Operating Officer BT Portfolio Services.
Special responsibilities: Chief Financial Officer
NEWS AND INSIGHTS
ASA Virtual Investor Summit 2024: Unlocking Global Private Credit with Dean Weinbren
Global private credit is one of the fastest growing asset classes over the last 15 years, driven mainly by the...
Pengana unveils private credit SMA fund on AMP North
Pengana Capital Group has announced the launch of a diversified global private credit separately managed account (SMA) fund. The fund...
1 .The target cash distribution yield is an objective target only and may not be achieved. Any shortfall in net income generated may result in a distribution payment made out of capital invested. Future returns are not guaranteed and a loss of principal may occur. Investors should review the Risks summary set out in Section 8 of the PDS. The first distribution is expected to be paid with reference to the period ending on 31 July 2024, with July 2024 being the first full month following the Settlement Date. Past performance is not necessarily a guide to future performance.
2. There are no guarantees that an active trading market with sufficient liquidity will develop or that such a secondary market will sustain a price representative of the NAV per unit. In circumstances where units are suspended from the ASX, unitholders may not be able to sell their units via the ASX until trading recommenced.
3. The Responsible Entity intends to make an offer to buy-back 5% of the issued capital of PCX at the Buy-Back Price each calendar quarter on an off-market basis, subject to the Responsible Entity determining such is in the best interest of unitholders. The Buy-Back Price is equal to the sum of (i) the NAV per unit as at the Buy-Back Pricing Date; and (ii) the amounts of distributions that the unitholder would have been entitled to if the unit was not cancelled from the Buy-Back Cancellation of Units Date up to the Buy-Back Payment Date. This off-market buy-back mechanism is intended to provide investors with an alternate option to sell their holdings. It is also intended to give investors a better investment outcome over traditional listed investment company (“LIC”) and listed investment trust (“LIT”) structures by reducing the propensity for trading on-market to occur at large discounts to the NAV per unit. The first round of quarterly buy-back post the completion of the IPO will have a Buy-Back Pricing Date of on or around 31 December 2024. Subject to the acceptance of a buy-back timetable which is acceptable to the ASX, a Buy-Back Booklet with details of specific dates for this first buy-back will be made available to unitholders on or around 15 August 2024, with the date required for a unitholder to elect to participate in the buy-back being on or around 20 September 2024. The Responsible Entity intends that each subsequent round of quarterly buy-back after the first round will also have at least one calendar quarter between the date required for a unitholder to elect to participate in the buy-back and its Buy-Back Pricing Date and Buy-Back Payment Date, with specific dates to be made available in future Buy-Back Booklets (subject to the acceptance of the buy-back timetable by the ASX). Please refer to the PDS for an explanation of capitalised defined terms and in particular to section 6.12 for further information in respect of the buy-back proposals and other capital management initiatives.
4. 10 year period from 1 July 2013 to 30 June 2023. Sources: S&P (S&P 500 Total Return Index), Bloomberg (Bloomberg US Corporate Total Return Value Unhedged USD), Burgiss (Burgiss – Private Debt (North America)), and Thomson Reuters Datastream (ICE BofAML US High Yield Master II, S&P Leveraged Loan). No assurance can be given that any investment will achieve its objectives or avoid losses. Past performance is not necessarily a guide to future performance.Past performance is not a reliable indicator of future performance, the value of investments can go up and down.
5. USD$ Cumulative Default Rate 1995 – 2021: S&P LCD & CreditPro (1995 to 2021), as at 31 December 2021. USD$ Average Annual Recovery Rate 1995-2022: S&P LCD & CreditPro (1995 to 2022). No assurance can be given that any investment will achieve its objectives or avoid losses. Past performance is not necessarily a guide to future performance. Past performance is not a reliable indicator of future performance, the value of investments can go up and down.
Mercer Consulting (Australia) Pty Limited ABN 55 153 168 140 AFSL 411770 (‘MCAPL’). MCAPL is a wholly owned subsidiary of Mercer (Australia) Pty Ltd ABN 32 005 315 917 (‘Mercer Australia’). MCAPL and Mercer Australia collectively referred to here as ‘Mercer’. References to Mercer shall be construed to include Mercer LLC and/or its associated companies. ‘MERCER’ is a registered trademark of Mercer Australia.