Pendal Monthly Income Plus Fund aims to provide a return (before fees, costs and taxes) that exceeds the RBA Cash Rate over rolling 3-year periods while allowing for some capital growth to reduce the impact of inflation. This Fund is designed for investors who want the potential for regular income and some long-term capital growth to protect against inflation, diversification across a range of asset classes and are prepared to accept some variability of returns. The Fund invests in a number of income generating strategies across a range of asset classes, including fixed interest, shares, and cash. The Fund may also use derivatives.
The Fund aims to provide a return (before fees, costs and taxes) that exceeds the RBA Cash Rate over rolling 3-year periods while allowing for some capital growth to reduce the impact of inflation.
The Fund’s investment strategy seeks to provide a reliable and consistent income stream that is commensurate with the prevailing cash rate. This will be achieved primarily by exposure to liquid cash and fixed income investments that generally continue to produce income even in times of stress.The Fund’s strategy also seeks to reduce the impact of inflation through exposure to growth assets (namely Australian shares) which will provide investors with the potential for some capital growth.
The Fund invests mainly in fixed and floating credit, government bonds and cash securities as well as Australian shares. The Fund is diversified with the goal of achieving stability and consistency of income over the long term
What is Pendal Monthly Income Plus Fund Pendal Monthly Income Plus Fund is an Managed Funds investment product that is benchmarked against Multi-Asset Growth Investor Index and sits inside the Multi-Asset - Multi-Asset Income 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 Pendal Monthly Income Plus Fund has Assets Under Management of 549.96 M with a management fee of 0.65%, a performance fee of 0.00% and a buy/sell spread fee of 0.27%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the Pendal Monthly Income Plus Fund has returned 0.83% in the last month. The previous three years have returned 2.7% annualised and 2.66% each year since inception, which is when the Pendal Monthly Income Plus Fund 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 Pendal Monthly Income Plus Fund first started, the Sharpe ratio is NA with an annualised volatility of 2.66%. The maximum drawdown of the investment product in the last 12 months is -0.62% and -5.95% 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 Pendal Monthly Income Plus Fund has a 12-month excess return when compared to the Multi-Asset - Multi-Asset Income Index of -0.76% and -0.92% 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. Pendal Monthly Income Plus Fund has produced Alpha over the Multi-Asset - Multi-Asset Income 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 - Multi-Asset Income Index category, you can click here for the Peer Investment Report.
What level of diversification will Pendal Monthly Income Plus Fund provide?
Pendal Monthly Income Plus Fund has a correlation coefficient of 0.84 and a beta of 0.71 when compared to the Multi-Asset - Multi-Asset Income 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 Pendal Monthly Income Plus Fund and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Pendal Monthly Income Plus Fund with the Multi-Asset Growth Investor Index?
For a full quantitative report on Pendal Monthly Income Plus Fund compared to the Multi-Asset Growth Investor Index, you can click here.
Can I sort and compare the Pendal Monthly Income Plus Fund to do my own analysis?
To sort and compare the Pendal Monthly Income Plus Fund financial metrics, please refer to the table above.
Has the Pendal Monthly Income Plus Fund 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 Pendal Monthly Income Plus Fund?
How do I get in contact with the Pendal Monthly Income Plus Fund?
Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the Pendal Monthly Income Plus Fund. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - January 31, 2021 The Fund delivered a small negative return of -0.16% (pre-fee) over January. The key drivers was small negative active returns from Australian equity strategy and our duration, which dragged down returns from our credit strategy. Australian Equities market returned a small positive however, negative stock selection detracted which saw a total negative return for the month. Concerns around rising inflation due to increase fiscal stimulus out of the US combined with higher growth prospects as the successful rollout of the vaccine started in UK, Europe and the US saw bond yields rise over the month causing losses for our interest rate duration and government bond exposures. Credit markets were positive with our overweight Infrastructure positioning benefiting form a small rally in their spreads.
The fund continued to hold its more risk on allocation with equities at 19% as we use the positive momentum in equities to increase to our highest weight possible at the moment, with the volatility signal still on so the last 6% exposure won’t be entered until mid-2020 at best. We continue to hold 6% to Government bonds still, with the remainder in cash (15%) and Australian Credit at 61%.
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