Bendigo Balanced Index Fund aims to create wealth, by investing in a selection of index funds that seek to track the performance of selected benchmarks for each asset class. The Fund’s dynamic asset allocation aims to achieve a better outcome for investors than the static performance benchmark. Its objective is to deliver investment returns after fees in excess of 3% above inflation over a full market cycle (typically 7 to 10 years). Sandhurst has appointed Vanguard as the asset manager of Australian shares, international shares, property securities and Australian and international fixed interest. Vanguard has established a reputation in Australia as an index specialist providing low cost indexed solutions to investors. Sandhurst manages the asset allocation, portfolio management and cash. The neutral position of the Fund is 60% growth assets and 40% defensive assets. Half yearly income distributions.
Returns relative the benchmark where mixed over the period. Aiding performance was the underweight to global fixed income with preference to Australian inflation linked bonds and cash. Detracting from performance was the underweight exposure to global equities with a preference for cash yielding investments. We believe equity markets are not an attractive proposition at this point given the headwinds to earnings, high valuations and an attractive alternative in fixed income and cash. Whilst we acknowledge equity markets may move higher over the shorter term, we believe a sustained move higher in prices requires robust earnings growth, in which this ingredient is missing from the market.
What is Bendigo Balanced Index Bendigo Balanced Index is an Managed Funds investment product that is benchmarked against Multi-Asset Balanced Investor Index and sits inside the Multi-Asset - 41-60% Low-Cost Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Bendigo Balanced Index has Assets Under Management of 483.78 M with a management fee of 0.43%, a performance fee of 0.00% and a buy/sell spread fee of 0.2%.
How has the investment product performed recently? The recent investment performance of the investment product shows that the Bendigo Balanced Index has returned 1.27% in the last month. The previous three years have returned 4.52% annualised and 6.92% each year since inception, which is when the Bendigo Balanced Index first started.
How is risk measured in this investment product? There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Bendigo Balanced Index first started, the Sharpe ratio is NA with an annualised volatility of 6.92%. The maximum drawdown of the investment product in the last 12 months is -1.98% and -12.55% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
What is the relative performance of the investment product? Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Bendigo Balanced Index has a 12-month excess return when compared to the Multi-Asset - 41-60% Low-Cost Index of 1.26% and 0.87% since inception.
Does the investment product produce Alpha over its Peers? Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Bendigo Balanced Index has produced Alpha over the Multi-Asset - 41-60% Low-Cost Index of NA% in the last 12 months and NA% since inception.
What are similar investment products? For a full list of investment products in the Multi-Asset - 41-60% Low-Cost Index category, you can click here for the Peer Investment Report.
What level of diversification will Bendigo Balanced Index provide? Bendigo Balanced Index has a correlation coefficient of 0.98 and a beta of 0.95 when compared to the Multi-Asset - 41-60% Low-Cost Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
How do I compare the investment product with its peers? For a full quantitative report on Bendigo Balanced Index and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Bendigo Balanced Index with the Multi-Asset Balanced Investor Index? For a full quantitative report on Bendigo Balanced Index compared to the Multi-Asset Balanced Investor Index, you can click here.
Can I sort and compare the Bendigo Balanced Index to do my own analysis? To sort and compare the Bendigo Balanced Index financial metrics, please refer to the table above.
Has the Bendigo Balanced Index been independently verified by SMSF Mate? This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.
How can I invest in Bendigo Balanced Index? If you or your self managed super fund would like to invest in the Bendigo Balanced Index please contact The Bendigo Centre, Bendigo VIC 3550, Australia via phone 1300 236 344 or via email -.
How do I get in contact with the Bendigo Balanced Index? If you would like to get in contact with the Bendigo Balanced Index manager, please call 1300 236 344.
Comments from SMSF Mates SMSF Mate does not receive commissions or kickbacks from the Bendigo Balanced Index. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - March 31, 2023 Returns for the quarter were positive across all risk profiles with the Funds on average performing in line with the peer group. Aiding returns was positions in gold, in which rallied on concerns of bank failures within the US. Detracting from relative returns was underweight exposures to equities. The Funds continue to be positioned cautiously given our view that growth will continue to slow as global central banks hold interest rates in restrictive territory. More recently we have experienced an increase in liquidity within markets that has seen some reduction in the volatility that was experienced over the past year. Looking forward there are many uncertainties present within markets and we believe a well diversified portfolio across currencies, geographies, bonds, equities, gold and cash to be beneficial in smoothing returns over the upcoming period.
Performance Commentary - December 31, 2022 Returns for the December quarter were strong in absolute terms but laggedthe Benchmark across the risk profiles as risk sentiment improved over theperiod. The Funds are underweight growth assets relative to the benchmarkgiven the Team’s outlook for economic growth. Markets began pricing ahigher probability of a lower terminal cash rate in the US following theNovember inflation print that surprised to the downside. This buoyed riskappetite as lower terminal rates are positive for valuations. However, theteam remains cautious on the outlook for earnings and valuations remainelevated which has the Team more cautious on recent market optimism.Despite the rally, global equities finished the calendar year 18.1% lower. TheFunds are well diversified and are positioned for a range of outcomes ascentral banks try to engineer a soft landing in their pursuit of reducinginflation.
Performance Commentary - September 30, 2022 Fund performance for the September quarter was 4.36% (net of fees) versus the benchmark return of 4.82%, as measured by the S&P/ASX Emerging Companies Accumulation Index and the reference index return of -0.47% as measured by the S&P/ASX Small Ordinaries Accumulation Index. The macro trumped the micro throughout the month of September, which accelerated the downdraft in equity markets. All eyes were on the Federal Reserve after a series of strong economic data which would likely result in an increasingly hawkish central bank. In a twist, good news suddenly seemed bad for equity markets, all of which indicate that a Fed pivot is not yet on the immediate horizon and the prospect of an economic hard landing will not derail the Fed from reaching their price stability goals.
The Fund marginally underperformed the benchmark in a volatile quarter by -0.45% (net of fees), however it convincingly outperformed the Small Ordinaries Index by 4.84% (net of fees). The Fund benefited from strong earnings results from Lovisa, Data#3 and Tuas, and from industrial positions in PSC Insurance, Life360 and PWR Holdings. Energy and Materials also supported returns through exposure to rising energy prices and battery materials. The Fund retains its focus on high-quality companies with strong balance sheets, low gearing and recurring earnings that can see through the economic and market uncertainty, and selectively added to positions over the month.
Performance Commentary - June 30, 2022 Returns for the quarter ending June were negative in absolute terms given all assets except cash returned in the red. However, the Funds outperformed their relative benchmarks over the period. The Funds are significantly underweight growth exposures which have benefitted benchmark and peer relative returns. This has been a challenging environment for asset managers given rising bond yields have put downward pressure on all asset valuations. Under these conditions the team have taken advantage of higher yielding defensive assets in the Funds which will add to core income and within growth exposures have pivoted to assets with greater earnings certainty such as infrastructure.
Performance Commentary - March 31, 2022 Returns for the period fell short of the Morningstar peer group. Driving the relative return was the lack of exposure to unlisted investments such as private equity, unlisted property, infrastructure and private credit. Given the index, low-cost nature of the Funds, unlisted investments are not currently invested in. Unlisted investments adopt less frequent valuations and hence they are not subject to short term market volatility. Over the quarter we increased weights to Australian equities and global infrastructure, given the favourable dynamics for these asset classes. We have also reduced global credit exposure through our defensive sleeve due to our perception that credit spreads will move outwards.
Performance Commentary - February 28, 2022 Returns for the period fell short of the Morningstar peer group. Driving the relative return was the lack of exposure to unlisted investments such as private equity, unlisted property, infrastructure and private credit. Given the index, low cost nature of the Funds, unlisted investments are not currently invested in. Unlisted investments adopt less frequent valuations and hence they are not subject to short term market volatility such as the events of January. Over the month active tilts away from interest rate sensitive investments such as fixed government bonds and exposures to gold both benefited the Funds.
Performance Commentary - January 31, 2022 The majority of risk profiles underperformed the Morningstar peer group over the period. Driving the relative return was the lack of exposure to unlisted investments such as private equity, unlisted property, infrastructure and private credit. Given the index, low cost nature of the Funds, unlisted investments are not currently invested in. Unlisted investments adopt less frequent valuations and hence they are not subject to short term market volatility such as the events of January. Over the month active tilts in emerging markets and underweight positions in interest rate sensitive investments such as fixed government bonds both benefited the Funds.
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