Bendigo Defensive Index (STL0031AU) Report & Performance

What is the Bendigo Defensive Index fund?

Bendigo Defensive Index aims to deliver investment returns after fees in excess of 1.5% above inflation over a full market cycle (typically 7 to 10 years).

  • To invest via a selection of index funds and cash that seek to track the performance of selected benchmarks for each asset class.
  • The Fund invests predominantly in income generating defensive assets (Australian fixed interest, international fixed interest and cash) whilst limiting exposure to growth assets (Australian shares, international shares and property securities).

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For Bendigo Defensive Index

Bendigo Defensive Index Fund Commentary June 30, 2023

Returns relative the benchmark where mixed over the period. Aiding performance was the underweight to global fixed income with preference to Australian inflation linked bonds and cash. Detracting from performance was the underweight exposure to global equities with a preference for cash yielding investments. 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 Defensive IndexSTL0031AUManaged FundsMulti-Asset0-20% Growth Assets - Multi-ManagerMulti-Asset - 0-20% Multi-Manager IndexMulti-Asset Conservative Investor Index113.83 M0.39%0.00%0.21%

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 Defensive Index0.84%3.29%10.43%1.37%4.81%3.73%5.19%3.76%-1.18%-10.01%-10.6%

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 Defensive IndexMulti-Asset - 0-20% Multi-Manager Index-2.78%-1.14%NA%NA%NA%0.681.84%2.75%0.990.9

Product Details

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

Product Due Diligence

What is Bendigo Defensive Index

Bendigo Defensive Index is an Managed Funds investment product that is benchmarked against Multi-Asset Conservative Investor Index and sits inside the Multi-Asset - 0-20% 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 Defensive Index has Assets Under Management of 113.83 M with a management fee of 0.39%, a performance fee of 0.00% and a buy/sell spread fee of 0.21%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the Bendigo Defensive Index has returned 0.84% in the last month. The previous three years have returned 1.37% annualised and 3.76% each year since inception, which is when the Bendigo Defensive Index 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 Defensive Index first started, the Sharpe ratio is NA with an annualised volatility of 3.76%. The maximum drawdown of the investment product in the last 12 months is -1.18% and -10.6% 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 Defensive Index has a 12-month excess return when compared to the Multi-Asset - 0-20% Multi-Manager Index of -2.78% and -1.14% 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 Defensive Index has produced Alpha over the Multi-Asset - 0-20% Multi-Manager 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 - 0-20% Multi-Manager Index category, you can click here for the Peer Investment Report.

What level of diversification will Bendigo Defensive Index provide?

Bendigo Defensive Index has a correlation coefficient of 0.9 and a beta of 0.68 when compared to the Multi-Asset - 0-20% 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 Defensive Index and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Bendigo Defensive Index with the Multi-Asset Conservative Investor Index?

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

Can I sort and compare the Bendigo Defensive Index to do my own analysis?

To sort and compare the Bendigo Defensive Index financial metrics, please refer to the table above.

Has the Bendigo Defensive Index 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 Defensive Index?

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

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

Comments from SMSF Mates

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

Video Gallery

No current media available.

Historical Performance Commentary

Performance Commentary - March 31, 2023

Returns for the quarter were positive across all risk profiles with the Funds on average performing in line with the peer group. Aiding returns was positions in gold, in which rallied on concerns of bank failures within the US. Detracting from relative returns was underweight exposures to equities. The Funds continue to be positioned cautiously given our view that growth will continue to slow as global central banks hold interest rates in restrictive territory. More recently we have experienced an increase in liquidity within markets that has seen some reduction in the volatility that was experienced over the past year. Looking forward there are many uncertainties present within markets and we believe a well diversified portfolio across currencies, geographies, bonds, equities, gold and cash to be beneficial in smoothing returns over the upcoming period.

Performance Commentary - December 31, 2022

Returns for the December quarter were strong in absolute terms but laggedthe Benchmark across the risk profiles as risk sentiment improved over theperiod. The Funds are underweight growth assets relative to the benchmarkgiven the Team’s outlook for economic growth. Markets began pricing ahigher probability of a lower terminal cash rate in the US following theNovember inflation print that surprised to the downside. This buoyed riskappetite as lower terminal rates are positive for valuations. However, theteam remains cautious on the outlook for earnings and valuations remainelevated which has the Team more cautious on recent market optimism.Despite the rally, global equities finished the calendar year 18.1% lower. TheFunds are well diversified and are positioned for a range of outcomes ascentral banks try to engineer a soft landing in their pursuit of reducinginflation.

Performance Commentary - September 30, 2022

Returns for the quarter ending September were negative in absolute terms but were stronger than the benchmark for all 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 as forward indicators of growth soften and interest rate differentials grow making the greenback appealing to investors seeking higher yields.

Performance Commentary - June 30, 2022

Returns for the quarter ending June were negative in absolute terms given allassets except cash returned in the red. However, the Funds outperformedtheir relative benchmarks over the period. The Funds are significantlyunderweight growth exposures which have benefitted benchmark and peerrelative returns. This has been a challenging environment for asset managersgiven rising bond yields have put downward pressure on all asset valuations.Under these conditions the team have taken advantage of higher yieldingdefensive assets in the Funds which will add to core income and withingrowth exposures have pivoted to assets with greater earnings certaintysuch as infrastructure.

Performance Commentary - March 31, 2022

Returns for the period fell short of the Morningstar peer group. Driving the relative return was the lack of exposure to unlisted investments such as private equity, unlisted property, infrastructure and private credit. Given the index, low-cost nature of the Funds, unlisted investments are not currently invested in. Unlisted investments adopt less frequent valuations and hence they are not subject to short term market volatility. Over the quarter we increased weights to Australian equities and global infrastructure, given the favourable dynamics for these asset classes. We have also reduced global credit exposure through our defensive sleeve due to our perception that credit spreads will move outwards.

Performance Commentary - June 30, 2021

Over the quarter investment markets produced high positive returns, resulting in great outcomes across the portfolios. The Funds outperformed the Morningstar peer group over the quarter and over the financial year. Given the strength of the rebound from the Covid lows in March 2020, returns for the financial year ranged from 6.7% for the defensive portfolio up to 28.4% for the high growth. Positioning in Australian inflation linked bonds over fixed coupon bonds benefited the Funds. Inflation linked bonds offer protection within the portfolio against rising inflation and will outperform fixed coupon bonds when inflation rises faster than market interest rates. Detracting from performance was overweight positions in emerging markets which underperformed developed world equities.

Performance Commentary - December 31, 2020

From both a peer relative and absolute return perspective, the Index suite of Funds performed strongly over the quarter. Risk assets across the board all rose sharply, with tilts in favour of emerging markets coupled with an underweight to global infrastructure, proving beneficial.

Over the one year period the standout performer was the Bendigo Defensive Index Fund, in which returned over 3% higher than the Morningstar peer group and was the highest returning fund within its Morningstar peer group and the Bendigo index suite of products. Driving performance was the movement away from fixed bonds into inflation linked bonds through the late March and April market recovery.

Recently the Funds have added an alternatives asset class with the intention of including an exposure to gold, in which we believe adds significant diversification benefits, in particular inflation risk protection. Looking forward, we believe the Funds will be well positioned for any potential rise in inflation with a meaningful exposure to gold, inflation linked bonds and emerging markets.

Kind words from Aussies managing
their own self funded futures

  • SMSF Mate is a unique website because it has ideas about how to approach SMSFs, insurance and other financial topics that come straight from first hand experience. It's much more useful than what you find on all the other financial websites that just offer generic info that you could easily get on the ATO's website. It's also nice to know there's no financial incentive behind the information, it's legitimately there to help people understand self-managed super funds and how to get the most out of them, not to get an affiliate commission from a broker or other financial services provider. The investment product information is also incredibly useful, I've never seen this kind of functionality on any other website that let's you look at such a wide range of products, sort by what info is most interesting or important to you, and subscribe to updates for different funds and financial products all in one place. Definitely worth checking out if you own or are considering an SMSF!

    David G, Self-Employed, SMSF Owner
  • SMSF Mate provides a unique insight into superannuation and financial topics in a way that is easier to understand than conventional websites. The colloquial nature of the site makes it easy to understand and they often speak about complicated topics in lamens terms so I can wrap my head around them. The investment product information is a great way to research funds that I am interested in investing in with my SMSF and there is a lot of helpful information on the site for better structuring my investment portfolio. In comparison to other websites which offer similar information, SMSF Mate excels as the information is free to access whereas many other sites charge a subscription fee for the same thing. Overall, I think SMSF Mate is a great resource for SMSF trustees and is worth looking at for a variety of super-related topics. Thanks.

    Tim B, Business Owner, SMSF Trustee