The Pengana Global Small Companies Fund invests in high-quality businesses with strong pricing power (the ability to pass on the increases in input costs) and favourable operating margins.
The Fund is disproportionately invested in sectors that will benefit from an increase in interest rates, as well as more reasonably valued jurisdictions resulting in a significant overweight to Europe.
It is also overweight industrial businesses, and those sectors that will benefit most from a consumer-led recovery. Investments in businesses like Dino Polska, the Polish Grocery chain which has been held in the portfolio since July 2017 is well poised to take advantage of the evolving economic environment; or the 100-year-old ferry service between the UK and Ireland, the Irish Continental Group, which was more recently purchased to capture the increase in activity as these two economies emerge from lockdown.
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