Pendal Pure Alpha Fixed Income aims to provide a total return (after fees, costs and taxes applicable to the Fund) that exceeds the Bloomberg AusBond Bank Bill Index by 2 – 4% per annum, over the medium term. The Fund aims to generate its returns by investing in a portfolio of fixed interest, credit and foreign exchange markets.
The Fund aims to provide a total return (after fees, costs and taxes applicable to the Fund) that exceeds the Bloomberg AusBond Bank Bill Index by 2 – 4% per annum, over the medium term. The suggested investment period is 3 years or more.
The Fund is intended for investors who want the potential for positive returns across a range of market conditions, with a low correlation to equity and bond markets. The Fund aims to generate its returns by investing in fixed interest, credit and foreign exchange markets in Australia and globally. The Fund invests primarily in Australia and New Zealand but may also invest in other countries and currencies. The Fund predominantly uses derivatives including swaps, options, futures and forwards to achieve its investment exposures.
What is Pendal Pure Alpha Fixed Income Pendal Pure Alpha Fixed Income is an Managed Funds investment product that is benchmarked against Global Aggregate Hdg Index and sits inside the Fixed Income - Diversified Credit 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 Pure Alpha Fixed Income has Assets Under Management of 7.52 M with a management fee of 0.7%, a performance fee of 0.00% and a buy/sell spread fee of 0.1%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the Pendal Pure Alpha Fixed Income has returned 0.49% in the last month. The previous three years have returned 1.73% annualised and 2.89% each year since inception, which is when the Pendal Pure Alpha Fixed Income 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 Pure Alpha Fixed Income first started, the Sharpe ratio is NA with an annualised volatility of 2.89%. The maximum drawdown of the investment product in the last 12 months is -0.75% and -8.2% 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 Pure Alpha Fixed Income has a 12-month excess return when compared to the Fixed Income - Diversified Credit Index of -2.94% and -2.8% 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 Pure Alpha Fixed Income has produced Alpha over the Fixed Income - Diversified Credit 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 Fixed Income - Diversified Credit Index category, you can click here for the Peer Investment Report.
What level of diversification will Pendal Pure Alpha Fixed Income provide?
Pendal Pure Alpha Fixed Income has a correlation coefficient of 0.09 and a beta of 0.61 when compared to the Fixed Income - Diversified Credit 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 Pure Alpha Fixed Income and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Pendal Pure Alpha Fixed Income with the Global Aggregate Hdg Index?
For a full quantitative report on Pendal Pure Alpha Fixed Income compared to the Global Aggregate Hdg Index, you can click here.
Can I sort and compare the Pendal Pure Alpha Fixed Income to do my own analysis?
To sort and compare the Pendal Pure Alpha Fixed Income financial metrics, please refer to the table above.
Has the Pendal Pure Alpha Fixed Income 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 Pure Alpha Fixed Income?
How do I get in contact with the Pendal Pure Alpha Fixed Income?
Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the Pendal Pure Alpha Fixed Income. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - December 31, 2020 Major equity indices closed the year on a high, aided by President Trump’s unveiling of a new USD$2.3 trillion stimulus bill. The package allayed concerns of a growth relapse as peaking economic trends stoked caution ahead of the holiday season. Continued rollout of the coronavirus vaccine further buoyed sentiment with UK and US regulators authorising use of the AstraZeneca and Pfizer inoculations respectively. However, delays in distribution as well as discovery of a new, more infectious strain of the Covid virus tempered optimism towards the end of the month. In the rates space, developed market yields re-attempted to lift above their short-term highs as upgrades to growth and inflation led some to bring forward the expected date of tapering. US and Australian 10-year treasuries climbed around seven basis points to 0.91% and 0.97% respectively while New Zealand long end sold off 14 basis points to just shy of 1%. While the reflation theme dominated moves in the opening weeks of December, it lost steam in the latter half as guidance from key central banks reaffirmed their dovish commitments. In the US the FOMC decided to maintain their pace of quantitative easing and highlighted that monetary accommodation would persist “until substantial further progress has been made” towards employment and price stability. In Japan, the BoJ left policy rates unchanged but extended aid to pandemic-stricken sectors of the economy by a further six months.
Similar language was echoed by the RBA as Governor Lowe reasserted policy settings from November i.e. the Board needs to see significant improvement in employment and wage growth before a pivot away from the current regime. While our long duration positions detracted from relative performance, we remain advocates of being overweight in bonds. Policymakers today need to achieve passing grades across an expanded macroeconomic scorecard before monetary support is withdrawn. Even with a vaccine in train, this will be an ambitious hurdle in the near term.
At the moment, we see an unevenness to the recovery with small businesses – the bedrock of domestic employment – lagging. Owners here remain unwilling to expand amid an ailing service sector and uncertainty around future lockdowns. The benchmark to tightening policy has also been raised with the Fed moving to average-inflation targeting and, domestically the RBA needing to see actual, not forecast, inflation to sustainably be within their 2-3% band.
Elsewhere, our emerging market positions continued to pay dividends with our short US Dollar against Asian FX bias contributing to alpha over the month. The relative containment of the virus throughout the Greater China zone plus the acceleration of 5G technology has seen a material pick-up in regional manufacturing and exports momentum. We expect this theme to deliver throughout 2021.
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