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Lipper Alpha Insight - Fund Manager Chat

Jul 2, 2018

In this podcast, Rhett Kessler, fund manager of the Pengana Australian Equities Fund at Pengana Capital, provides his current views on the state of Australian equities.

Rhett discusses the personal philosophy which drives the stock selection process of his highly concentrated portfolio. He outlines the key factors for his stock selection process, highlights where he is currently finding value for his investors, and how he uses cash as a portfolio management tool.

Rhett also outlines the fund performance over the last 12 months and and discusses some of the potential headwinds facing Australian equities.

Running Order

Run Time Topic
00:23 Can you outline the philosophy and process of the Pengana Australian Equities Fund?
02:01 How do you reconcile such a concentrated portfolio with an absolute return objective?
02:51 What type of businesses does you process lead you to?
03:25 Your performance over the last 12 months (to April 2018) has closely tracked the ASX 300. Why?
04:34 Your cash holding is quite high. What is the objective here?
06:00 Is capacity an issue for your fund?
06:55 Can you provide an outlook for Australian equities?
08:24 Are there any potential headwinds to Australian equities?


Rhett is chatting with Jake Moeller, Head of Lipper UK and Ireland Research, at Thomson Reuters in London on April 26, 2018.

About Rhett Kessler

Rhett joined Pengana in October 2007, bringing with him over 18 years of experience as an investment professional.

He is responsible for leading Pengana Capital’s Australian equities team and managing the Pengana Australian Equities Fund.

Prior to joining Pengana, Rhett was Head of Research for IAG Asset Management (IAGAM) as well as being a joint portfolio manager for various wholesale funds totalling $3.3 billion. In 2005 he successfully launched the IAGAM Absolute Return Fund, on which the Pengana Australian Equity Fund is based.

Rhett was previously a rated media analyst for UBS Australia, having emigrated from South Africa in 1996, where he successfully managed wholesale and retail equity portfolios as Deputy General of Investment for Liberty Asset Management.

Rhett holds Bachelor degrees in Commerce and Accounting from the University of Witwatersrand in South Africa. He is also a Chartered Accountant (SA) and holds the CFA designation.


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This material is provided for as market commentary and for educational purposes only and does not constitute investment research or advice. Thomson Reuters cannot be held responsible for any direct or incidental loss resulting from applying any of the information provided in this publication or from any other source mentioned. Please consult with a qualified professional for financial advice. The author owns shares in this investment.