Bendigo Conservative Wholesale is an Managed Funds investment product that is benchmarked against Multi-Asset Moderate Investor Index and sits inside the Multi-Asset - 21-40% 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 Conservative Wholesale has Assets Under Management of 162.54 M with a management fee of 0.83%, a performance fee of 0.00% and a buy/sell spread fee of 0.32%.
The recent investment performance of the investment product shows that the Bendigo Conservative Wholesale has returned 0.8% in the last month. The previous three years have returned 1.58% annualised and 4.88% each year since inception, which is when the Bendigo Conservative Wholesale first started.
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 Conservative Wholesale first started, the Sharpe ratio is NA with an annualised volatility of 4.88%. The maximum drawdown of the investment product in the last 12 months is -2.19% and -13.62% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
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 Conservative Wholesale has a 12-month excess return when compared to the Multi-Asset - 21-40% Multi-Manager Index of -0.29% and 0.84% since inception.
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 Conservative Wholesale has produced Alpha over the Multi-Asset - 21-40% Multi-Manager Index of NA% in the last 12 months and NA% since inception.
For a full list of investment products in the Multi-Asset - 21-40% Multi-Manager Index category, you can click here for the Peer Investment Report.
Bendigo Conservative Wholesale has a correlation coefficient of 0.88 and a beta of 0.81 when compared to the Multi-Asset - 21-40% 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.
For a full quantitative report on Bendigo Conservative Wholesale and its peer investments, you can click here for the Peer Investment Report.
For a full quantitative report on Bendigo Conservative Wholesale compared to the Multi-Asset Moderate Investor Index, you can click here.
To sort and compare the Bendigo Conservative Wholesale financial metrics, please refer to the table above.
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.
If you or your self managed super fund would like to invest in the Bendigo Conservative Wholesale please contact The Bendigo Centre, Bendigo VIC 3550, Australia via phone 1300 236 344 or via email -.
If you would like to get in contact with the Bendigo Conservative Wholesale manager, please call 1300 236 344.
SMSF Mate does not receive commissions or kickbacks from the Bendigo Conservative Wholesale. All data and commentary for this fund is provided free of charge for our readers general information.
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.
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.
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.
Returns for the quarter ending June were negative in absolute terms given all assets exceptcash returned in the red. However, the Funds outperformed their relative benchmarks over theperiod. The Funds are significantly underweight growth exposures which have benefittedbenchmark and peer relative returns. This has been a challenging environment for assetmanagers given rising bond yields have put downward pressure on all asset valuations. Underthese conditions the team have taken advantage of higher yielding defensive assets in theFunds which will add to core income and within growth exposures have pivoted to equitysectors with greater earnings certainty such as consumer staples, healthcare, andinfrastructure. Active manager performance has been mixed. Pleasingly, defensive equityexposures such as AB Managed Vol and Antipodes Global Fund have outperformed theirrespective benchmarks over the period.
For the quarter ended June 30, financial markets’ focus shifted from expectations of risinginflation to hawkish Central Bank policy and its potential to slow economic growth andinflation. Inflation continues to remain elevated and has broadened out to the services andcore components of CPI. As a result, the policy response has been aggressive to bringsupply/demand imbalances back to normal levels over time and asset valuations have beenimpacted due to rising discount rates. Asset returns have been poor for the 3-month period,Australian equities, as measured by the ASX 200 Index, returned -12.4%, and global equitieson a currency hedged basis returned -15.1%, as measured by the MSCI World Index.
In the United States, the Federal Reserve has aggressively raised the federal funds rate 3times since February opting to raise the cash rate by 75 basis points in June alone. A hike ofthis size has not been seen in over 25 years indicating the committee’s strong intent bringinflation down. The Fed dot plot, a survey of Fed members which is used to express forwardexpectations of the cash rate, shows no signs of slowing the pace of rate hikes either withthe most recent dot plot indicating a federal funds target rate of 3.40% by year end whichwould mark 340 basis points of rate rises in calendar year 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.
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.
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.
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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