Focus on active benchmark-unaware strategies receives strong backing from financial advisers and investors.
Australian funds management group Pengana Capital (Pengana) today announced it has doubled its funds under management (FUM) in the last three years, reaching $2 billion this month.
Pengana manages six actively managed equity strategies spanning Australian shares, Australian small caps, global small caps, international shares, Asian event-driven and global equities market neutral.
Responding to growing demand for global strategies which can help local advisers and investors improve portfolio diversification, Pengana has entered into two major distribution agreements in the last two years. In 2015 the group partnered with Leah Zell’s Chicago-based small cap specialist Lizard Investors, and in 2015 joined forces with Boston-based global quant manager PanAgora Asset Management to offer select strategies to local advisers and investors.
Pengana CEO Russel Pillemer said the firm’s robust investment processes and focus on absolute return objectives had been key drivers to the increased FUM.
“We’ve seen growing demand for our solutions as both investors and their advisers look for ways to achieve specific portfolio outcomes despite ongoing uncertainty and volatility across markets,” Mr Pillemer said.
“Overall, our focus on active benchmark-unaware strategies strikes a chord with investors and advisors. It reduces an investors’ exposure to market sensitivity and volatility and can deliver critical returns in these unpredictable markets we all face.
“Each of our portfolio managers has a distinct and disciplined approach. For example, they don’t buy stocks when it doesn’t make sense and they have the courage to invest in great deals when the market is depressed. In this low-growth, low-yield environment, skilled active management continues to add significant value.”
Mr Pillemer said the firm is well placed to embark on its next phase of growth.
During 2016 the firm also invested in its local distribution capability, building a 9-strong national business development, marketing and client service team focused on building relationships with financial advisers.
Pengana’s funds are available through 15 leading platforms and have been approved for distribution by over 100 Australian dealer groups.
“We remain focused on delivering distinct investment strategies that bring strong risk-adjusted returns to investors. We will also continue to broaden and evolve our range of investment strategies to suit investors’ needs,” Mr Pillemer said.
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