Benefits of investing in PIA

• Skilled investment team. The investment team has over 90 years of combined experience investing in global equities and has developed a successful and repeatable investment process.

• A truly active strategy. A relatively concentrated portfolio that is selected purely on investment merits rather than index weight.

• Investment in high quality businesses at compelling valuations. The strategy invests in businesses with compelling business models that consistently generate large and growing sums of cash.

• Focus on risk and return. The portfolio focuses on 30-50 stocks that work together, with sufficient concentration to deliver returns and sufficient diversification to reduce risk.

• Investment approach that is suitable across market environments. The investment team invests across different geographies, industries and company sizes and can adjust to changing market environments.

• Ethical process. Negative ethical screens exclude industries that, in our opinion, can cause harm to people, animals or the environment. Integration of ESG factors into the research process directs investments to well managed, responsible and progressive companies.

About the Fund

Pengana International Equities Limited (ASX: PIA) provides access to the benefits of an actively managed core portfolio of 30-50 ethically screened companies across developed and developing global markets via a listed investment company structure.

The aim of PIA is to generate consistent long-term returns whilst reducing volatility and the risk of losing capital.

The sole purpose of a LIC is to manage investments on behalf of its shareholders. Investors can become shareholders in PIA by purchasing the company's shares through any stockbroker or online broker.

How we invest your money

The strategy is long-only, benchmark independent and typically holds 30-50 companies. The mandate allows investment across geographies, industries and company sizes. The companies considered for inclusion in the portfolio demonstrate large and growing free cash flow generation, and are priced attractively relative to their cash flow.

The strategy utilises a negative screening process which seeks to avoid investment in companies that derive operating revenues from direct and material business involvement in the following sectors:

• the manufacture or sale of weapons and weapon components,

• tobacco manufacture,

• gambling outlets or systems,

• intensive animal farming,

• animal testing for cosmetics,

• activities that give rise to human rights violations,

• unremediated destruction of the environment,

• uranium mining and nuclear reactors, and

• fossil fuel exploration, production, refining, storage and transportation.

Integration of environmental, social and governance (ESG) factors into the research process directs investments to well managed, responsible and progressive companies.

An integral element of the portfolio construction process is the division of stocks that meet the investment criteria into three segments: Core, Cyclical and Opportunistic.

Core

(60-80% of the portfolio) are stable and growing businesses that generate consistent returns.

Cyclical

(0-30% of the portfolio) are businesses operating in cyclical industries that are poised for a cyclical upturn, which is not recognised in their share price.

Opportunistic

(0-20% of the portfolio) are unique, company specific situations that offer attractive potential upside.

The portfolio is created from the 30-50 stock ideas that work best together, rather than just the 30-50 best ideas.