Bendigo Balanced Wholesale (STL0013AU) Report & Performance

What is the Bendigo Balanced Wholesale fund?

Bendigo Balanced Wholesale aims to deliver investment returns after fees in excess of 3% above inflation over a full market cycle (typically 7 to 10 years). Inflation is measured by the Australian Consumer Price Index as published by the Australian Bureau of Statistics. To invest via a selection of high quality investment managers that specialise in managing specific asset classes. The Fund invests across the asset classes of Australian shares, international shares, property securities, Australian fixed interest, international fixed interest and cash.

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For Bendigo Balanced Wholesale

Bendigo Balanced Wholesale Fund Commentary June 30, 2023

The Funds have underperformed peers over the period. Driving the relative performance was a preference for cash yielding investments, defensive equities and the net underexposure to US technology companies. 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.

READ HISTORICAL PERFORMANCE COMMENTARIES

Product Snapshot

  • Product Overview
  • Performance Review
  • Peer Comparison
  • Product Details

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.
Bendigo Balanced WholesaleSTL0013AUManaged FundsMulti-Asset41-60% Growth Assets - Multi-ManagerMulti-Asset - 41-60% Multi-Manager IndexMulti-Asset Balanced Investor Index196.48 M0.96%0.00%0.34%

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.
Bendigo Balanced Wholesale2.43%2.76%4.26%1.1%5.95%4.69%5.75%6.62%-3.88%-13.59%-25.42%

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.
Bendigo Balanced WholesaleMulti-Asset - 41-60% Multi-Manager Index-4.85%0.21%-0.26%0.02%0.02%0.663.23%2.54%0.880.92

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
Bendigo Balanced WholesaleYesThe Bendigo Centre, Bendigo VIC 3550, Australia1300 236 344https://www.bendigobank.com.au/-

Product Due Diligence

What is Bendigo Balanced Wholesale

Bendigo Balanced Wholesale 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 Bendigo Balanced Wholesale has Assets Under Management of 196.48 M with a management fee of 0.96%, a performance fee of 0.00% and a buy/sell spread fee of 0.34%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the Bendigo Balanced Wholesale has returned 2.43% in the last month. The previous three years have returned 1.1% annualised and 6.62% each year since inception, which is when the Bendigo Balanced Wholesale 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 Wholesale first started, the Sharpe ratio is 0.4 with an annualised volatility of 6.62%. The maximum drawdown of the investment product in the last 12 months is -3.88% and -25.42% 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 Wholesale has a 12-month excess return when compared to the Multi-Asset - 41-60% Multi-Manager Index of -4.85% and 0.21% 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 Wholesale has produced Alpha over the Multi-Asset - 41-60% Multi-Manager Index of -0.26% in the last 12 months and 0.02% since inception.

What are similar investment products?

For a full list of investment products in the Multi-Asset - 41-60% Multi-Manager Index category, you can click here for the Peer Investment Report.

What level of diversification will Bendigo Balanced Wholesale provide?

Bendigo Balanced Wholesale has a correlation coefficient of 0.92 and a beta of 0.66 when compared to the Multi-Asset - 41-60% Multi-Manager 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 Wholesale and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Bendigo Balanced Wholesale with the Multi-Asset Balanced Investor Index?

For a full quantitative report on Bendigo Balanced Wholesale compared to the Multi-Asset Balanced Investor Index, you can click here.

Can I sort and compare the Bendigo Balanced Wholesale to do my own analysis?

To sort and compare the Bendigo Balanced Wholesale financial metrics, please refer to the table above.

Has the Bendigo Balanced Wholesale 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 Wholesale?

If you or your self managed super fund would like to invest in the Bendigo Balanced Wholesale 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 Wholesale?

If you would like to get in contact with the Bendigo Balanced Wholesale manager, please call 1300 236 344.

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the Bendigo Balanced Wholesale. All data and commentary for this fund is provided free of charge for our readers general information.

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Historical Performance Commentary

Performance Commentary - March 31, 2023

Returns for the quarter were positive across all risk profiles, however lagged the peer group. Share markets rose strongly despite a weak earnings period, buoyed by improved global liquidity conditions. The Funds defensive positioning detracted from relative returns in which more speculative areas of the market performed strongly. Over the period the Funds initiated a new investment in Oaktree Distressed Debt Opportunities, this exposure will take advantage of any dislocations in markets if they eventuate, in which provides additional diversification while potentially increasing returns moving forward. We believe the Funds to be well setup for the market conditions presently and into the future. The Funds have little to no exposure in the troubled areas of commercial property, venture capital and private equity, in which the pricing of these investments are slow to reflective the changing market conditions. The Funds hold defensive exposures across equities, with overweights to strong cash flow, earnings certainty sectors such as health care and consumer staples. The Funds also have many diversifies such as gold, energy, bonds, currencies, agriculture and water, which is expected to provide a relative smoother return for investors moving forward. Further given interest rates rises over the past year, the yields on fixed income investments are now contributing materially to returns.

Performance Commentary - December 31, 2022

Returns for the December quarter were positive across the risk profiles as risk assets had astrong rally to end the year. Markets began pricing a higher probability of a lower terminalcash rate in the US following the November inflation print that surprised to the downside. Thirdquarter US earnings were also better than expected which buoyed sentiment. Year over yearearnings were boosted by the energy and industrial sectors with gains outstripping declines inother industries. Australian shares recorded an impressive 9.1% return in the 3-month periodending December on the back of improved sentiment and anticipation of China planning toease its Covid restrictions. Active management contribution was mixed. Tactical exposures toEnergy benefitted the Funds. International equity manager Antipodes also aided performance.On the negative side of the ledger, Australian equity managers lagged the benchmark index.

Performance Commentary - September 30, 2022

Returns for the quarter ending September were negative in absolute terms but were stronger than the benchmark for most risk profiles. The investment team holds underweight exposures to growth assets relative to benchmark given the elevated volatility associated with high inflation and rising cash rates. This has benefitted Fund returns with equities and property underperforming overweight exposures such as Australian investment grade credit, alternatives, and cash over the 3-month period.

The Team remains cautious on interest rate linked investments such as duration (bonds and high price multiple equities) and property. A low hedge ratio to the US dollar has also benefitted the Funds given the currency’s recent strength. Active managers DNR Capital and Janus Henderson both positively contributed to performance in the September quarter. DNR’s overweight to materials boosted relative returns while Janus continues to deliver above benchmark credit income and capital gains through high quality security selection with a focus on improved compensation for risk given rising yields.

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

The majority of risk profile funds underperformed the Morningstar peer group over the period, falling short of our expectations. Leading to the result was the on-aggregate underperformance of our Australian and global equity managers. The Funds have held tactical positions in inflation-linked bonds, gold, energy and cash, all of which aided given their inflation hedge dynamics. However, the underperformance from the Funds growth equity managers and the lack of protection from our defensive equity managers, led to on-aggregate low returns.

The past quarter has seen a large divergence from the type of investments that worked well over the past decade, with resources now outperforming technology companies. Over the quarter we have acted to down weight underlying managers that we believe are not adapting to the changing environment and introduced several new exposures such as healthcare, consumer staples, energy and increased weights to gold and defensive equity managers in AB Managed Volatility.

Performance Commentary - February 28, 2022

The majority of risk profile funds underperformed the Morningstar peer group over the period, falling short of our expectations. Leading to the result was the on aggregate under performance of our Australian and global equity managers. The Funds have held tactical positions in inflation linked bonds, gold, energy and cash, all of which aided given their inflation hedge dynamics. However, the underperformance from the Funds growth equity managers and the lack of protection from our defensive equity managers, led to on aggregate low returns. Moving forward, the Funds have increased exposure to defensive equity managers and continue to hold exposures in energy, gold, inflation linked bonds and global commodities.

Performance Commentary - January 31, 2022

The majority of risk profiles underperformed the Morningstar peer group over the period. Driving the relative return was the underperformance on aggregate of our active equity managers. Over the past six months the market rotated away from high growth companies, and has rewarded cyclical companies such as financials, commodities and energy, in which these sectors benefit from rising inflation.

Aiding performance was the Funds active tilt towards global financials, held through an exchange traded fund. Further benefiting the Fund was the exposure to Ausbil Global Natural resources which has performed well relative to the broader Australian and global equity markets. The Funds have also benefited from a low exposure to fixed government bonds with the inclusion of Metrics Private Credit and investment in Janus Henderson Diversified Credit.

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