PGA1

PGA1

22-07-26

Plato Investment Management

https://www.marketindex.com.au/asx/pga1

https://pearler.com/explore/invest/au-shares/compare/PGA1-vs-BEAR/top-holdings

https://www.livewiremarkets.com/wires/4-market-shock-scenarios-and-the-40-stocks-that-will-be-rocked

----------------------------

ASX:PGA1 is not a traditional company with corporate metrics like debt or ROE; it is the Plato Global Alpha Fund Complex ETF, an actively managed global long-short fund that only listed on the ASX in late 2024. Consequently, it lacks a 5-year corporate track record. [1, 2, 3, 4]

Because it is a managed fund structure, corporate financial terms like profit, debt, and Return on Equity (ROE) do not apply in the traditional sense. Instead, fund performance is measured through market returns, net asset values (NAV), and distributions. [1, 2, 3]

Recent Fund Performance Metrics

Unit Price: The fund is trading around \(\$14.91\) AUD.
1-Year Return: The ETF has generated a total return of approximately \(22.6\%\) to \(24.3\%\) over the past 12 months, outperforming its benchmark.
Since Inception Return: Since its original inception as an unlisted fund, it has delivered an annualized return of roughly \(26.7\%\).
Investment Style: The ETF takes a "long-short" approach—typically carrying a \(140\% \text{ to } 150\%\) long exposure and a \(40\% \text{ to } 50\%\) short exposure, targeting capital growth with an active strategy. [1, 2, 3, 4]

For in-depth, historic fact sheets, monthly updates, and specific fund objectives, review the Plato Investment Management page

------------------------------

ASX:PGA1 is a long/short actively managed ETF, meaning it can short-sell overvalued stocks and use derivatives to hedge. During a bear market, this strategy allows the fund to potentially limit downside risk and generate positive returns from falling stocks, though it may still experience short-term volatility. [1, 2, 3, 4, 5]

How the fund is designed to behave in a bear market:

Short Selling Benefits: PGA1 maintains roughly 140% to 150% in long positions while holding 40% to 50% in short exposure. In a falling market, the declining value of its short positions can act as a buffer or generate profit to offset long portfolio losses. [1]
Systematic Risk Management: The fund utilizes a systematic, rules-based framework relying on over 150 "red flags" to identify and avoid heavily distressed or overvalued companies. This quantitative approach is designed to dodge landmines before a broader market shock. [1, 2, 3, 4]
Historical Resilience: Rather than simply tracking a standard index, PGA1’s goal is to outperform the MSCI World Net Return Index. The fund's active management aims to navigate through various market cycles, historically maintaining risk-adjusted volatility similar to the broader global market despite its complex positioning. [1, 2, 3]

While PGA1 offers sophisticated risk mitigation, it is not a pure inverse ETF (like BEAR). In a severe and unexpected bear market, losses in its long portfolio could still outweigh the gains from its shorts.

----------------------