Pre-Select Balanced Fund Performance Review | News

What is the Pre-Select Balanced Fund fund?

NUN0002AU Pre-Select Balanced Fund aims to provide medium to long term returns that are generally higher than those achievable by investing in conservative funds. Maintain a balanced spread of investments between growth and defensive assets. The likelihood of the portfolio incurring a negative return in any particular year is moderate to high.

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Pre-Select Balanced Fund Fund Commentary June 30, 2023

The Fund returned 2.0% for the quarter (before fees) and 9.2% for the year.

Key contributors to performance for the quarter ended 30 June 2023 are:

• In another volatile quarter, that saw large monthly swings in both share and bond markets, the Australian shares strategy had a positive return of +1.0% and the global shares unhedged strategy a very strong return of +7.4%.

• Corporate bonds have also benefitted from improving risk appetite with narrower credit spreads. Investors are finding the current corporate yields as now providing attractive income potential compared to recent years. The extended credit strategy returned +1.4%.

READ HISTORICAL PERFORMANCE COMMENTARIES

Product Snapshot

Performance Review
Product Overview
Peer Comparison
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Performance Review

Fund Name	Last Month ? Returns after fees in the most recent (last) month).	3 Months Return ? Returns after fees in the most recent 3 months.	1 Year Return ? Trailing 12 month returns.	3 Years Average Return ? Average Annual returns from the last 3 years.	Since Inc. Average Return ? Average (annualised) returns since inception	1 Year Std. Dev. (Annual) ? The standard deviation (or annual volatility) of the last 12 months.	3 Years Std. Dev. (Annual) ? The average standard deviation (or annual volatility) from the last 3 years.	Since Inc. Std. Dev. (Annual) ? The average standard deviation (or annual volatility) since the fund inception.	1 Year Max Drawdown ? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.	3 Year Max Drawdown ? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.	Since Inc. Max Drawdown ? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Pre-Select Balanced Fund	1.23%	4.01%	13.82%	4.66%	6.67%	5.66%	6.32%	5.97%	-2.28%	-9.55%	-22.63%

Product Overview

Fund Name	APIR Code ? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.	Structure ?	Asset Class ? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.	Asset Category ? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.	Peer Benchmark Name ? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.	Broad Market Index ? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.	FUM ? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.	Management Fee ? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.	Performance Fee ? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.	Spread ? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
Pre-Select Balanced Fund	NUN0002AU	Managed Funds	Multi-Asset	41-60% Growth Assets - Multi-Manager	Multi-Asset - 41-60% Multi-Manager Index	Multi-Asset Balanced Investor Index	127.53 M	0.65%	0	0.21%

Peer Comparison

Fund Name	Peer Index Name ? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.	12 Months Excess Return ? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.	Excess Return Annualised Since Inception ? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.	12 Months Alpha ? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.	Alpha Annualised Since Inception ? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.	12 Months Beta ? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).	Beta Annualised Since Inception ? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).	12 Months Tracking Error ? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.	Tracking Error Since Inception ? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.	12 Months Correlation ? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.	Correlation Since Inception ? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Pre-Select Balanced Fund	Multi-Asset - 41-60% Multi-Manager Index	-0.13%	0.34%	NA%	NA%	NA%	1.02	1.4%	1.53%	0.97	0.97

Product Details

Fund Name	Verifed by SMSF Mates	Manager Address	Phone	Website	Email
Pre-Select Balanced Fund	Yes		-	https://www.mlc.com.au/	-

Product Due Diligence

What is Pre-Select Balanced Fund

Pre-Select Balanced Fund is an Managed Funds investment product that is benchmarked against Multi-Asset Balanced Investor Index and sits inside the Multi-Asset - 41-60% Multi-Manager 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 Pre-Select Balanced Fund has Assets Under Management of 127.53 M with a management fee of 0.65%, a performance fee of 0 and a buy/sell spread fee of 0.21%.

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Historical Performance Commentary

Performance Commentary - March 31, 2023

The Fund returned 4.1% for the quarter (before fees) and 1.2% for the year.

Key contributors to performance for the quarter ended 31 March 2023 are:

• In another volatile quarter, that saw large swings in both share and bond markets, Australian shares had a strong return of +4.4% and global shares unhedged an exceptionally strong return of +9.3%.

• Fixed income returns continued to improve over the quarter. The inflation-linked bonds strategy had a strong return +4.2% and the short-maturity strategy returned +1.7%. Inflation-linked bonds continue to take favour in the scenario where inflation is higher than expected and is further supported by the reset in real rates. Note: Returns for the asset classes above are before fees and tax.

Performance Commentary - December 31, 2022

Performance Commentary - September 30, 2022

Performance Commentary - June 30, 2022

Performance Commentary - March 31, 2022

Performance Commentary - June 30, 2021

Performance Commentary - September 30, 2020

The Fund increased in value by 1.2% for the quarter (before fees and tax). Strong returns have offset some of the March quarter’s falls so the fund is down only 0.3% for the year to 30 September 2020.

Key contributors to performance for the quarter ended 30 September 2020 are:
• The global shares strategy (hedged to the Australian dollar) delivered a strong return in the September quarter of 4.8%. While Wall Street surged to record highs in early September given vaccine hopes, various factors weighed on global shares later in September. Firstly, and primarily, the virus remains a troubling global threat with new infection cases rising again. Secondly, political risk is becoming more prominent, in particular the US Presidential election. Global share markets continue to be narrowly led, with those companies delivering on earnings growth being handsomely rewarded, while those stocks with any economic sensitivity are being punished. Strength in the Australian dollar also added to this global shares strategy return because it’s hedged to the Australian dollar.
• The global shares strategy (not hedged to the Australian dollar) also contributed with a 2.5% return. The return was lower than hedged global shares because the Australian dollar appreciated in value, as it tends to do when global share markets rise.
• The fixed income strategy delivered a positive return of 1.0%. Global government and corporate bonds have delivered solid returns over the past quarter. Assertive central bank bond buying and hopes for a virus vaccine has seen investors become more comfortable with credit risk. The revival in global share markets has also contributed to improving risk appetites.With the extraordinarily low levels of government bond yields across the developed world (most notably Germany and Japan which are below 0% for long maturities), we have tilted the strategy modestly towards credit assets where yields are higher and the interest rate risk (duration) is lower.

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Pre-Select Balanced Fund (NUN0002AU) Report & Performance