Pengana LIC share price jumps as investors reject strategy change
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The news: Listed investment company Pengana International Equities share price jumped 2.43% to $1.26 by 3:34pm AEDT, following its annual general meeting which saw three board members removed and shareholders vote down a proposal to include private credit in its strategy.
The context: The board, which includes Geoff Wilson, Richard Caldwell, Julian Martin, Jesse Hamilton and chair Francis Gooch, today commenced a strategic review of the LIC.
The review will consider options including changes to the investment mandate, management arrangements, capital management initiatives or alternative structures.
Wilson led a campaign to overthrow the board due to the fund's underperformance and was against the strategy change.
He told Capital Brief that, according to his calculations, excluding major shareholders Wilson Asset Management, Pengana, Saba Capital Management and Soul Patts, 38 million shareholders voted against the strategy change compared to 22.6 million who voted for it.
What they said: “It was the change in investment strategy and performance — those are the two main issues that shareholders were very disappointed about,” Wilson told Capital Brief.
“I think private credit has some real challenges going forward maybe more so in Australian than globally. You’ve got to remember we’ve had a long period of economic expansion and the people that provide private credit are moving [investors] up the risk curve," he said.
In an announcement the Pengana board said: "The review follows ongoing shareholder feedback and recognises the Company’s persistent share price discount to NTA and investment performance".
"As part of this process, the Board welcomes proposals from interested parties, which should be submitted no later than Friday, 14 November 2025."
The source: ASX
