Russel Pillemer, chief executive of Pengana Capital Ltd., says by 2013 the firm aims to manage $2 billion in funds under management, up from $1.5 billion at present.
Pillemer, a former Goldman Sachs Group Inc. investment banker to funds management companies, expects investors, particularly individuals, to put money with Sydney-based Pangana’s seven funds.
But fund inflow at Pengana is not necessarily attributable to the $1.4 trillion Australian fund management industry that is growing because of 9 per cent individual superannuation contributions.
“On the face of it superannuation is a windfall,” says Pillemer. “But it’s tough because there is a massive focus on fees. What happens when you cut fees is you get index outcomes. We don’t play that game.”
Pengana will limit the size of its funds under management. The $500 million Pengana Emerging Companies Fund, run by Steve Black and Ed Prendergast, has made an 8.7 per cent annual net return over almost seven years over the S&P/ASX Small Ordinaries Accumulation Index.