Pendal Global Emerging Mkts Oppes – WS (BTA0419AU) Report & Performance

What is the Pendal Global Emerging Mkts Oppes – WS fund?

Pendal Global Emerging Market Opportunities Fund is an actively managed portfolio of global emerging market shares. Aims to provide a return (before fees, costs and taxes) that exceeds the MSCI Emerging Markets (Standard) Index (Net Dividends) in AUD over the long term.

  • The suggested investment time frame is seven years or more.
  • Designed for investors who want the potential for long-term capital growth, diversification across a broad range of global emerging market shares and are prepared to accept high variability of returns.
  • The portfolio is managed by J O Hambro Capital Management Limited, a wholly owned subsidiary within the Pendal Group.
  • The Assets are denominated in foreign currencies.

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For Pendal Global Emerging Mkts Oppes – WS

Pendal Global Emerging Mkts Oppes – WS Fund Commentary August 31, 2021

The portfolio underperformed the benchmark over the period with the portfolio’s holdings in gold miners Centamin and Barrick Gold with main source of weakness as the gold price dipped. Our South Korean holdings also hampered relative returns with SK Telecom amongst the key laggards.

One of our largest aggregate portfolio positions is in the related companies of Naspers (a South African holding company), its subsidiary Prosus (a Dutch media conglomerate focused on the internet in emerging markets), and Prosus’ largest investment, Tencent (one of the Chinese internet giants). All three added value over the month.

One of the oddities about the listings of these three is that Naspers trades at a discount to the market value of its shares in Prosus, and Prosus trades at a discount to the market value of its stake in Tencent (let alone the value of Tencent and Prosus’ other listed and unlisted investments).

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.
Pendal Global Emerging Mkts Oppes – WSBTA0419AUManaged FundsForeign EquityEmerging MarketsForeign Equity - Emerging Markets IndexWorld Emerging Markets Index179.40 M1.18%0.00%0.61%

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.
Pendal Global Emerging Mkts Oppes – WS1.71%0.51%6.77%1.23%7.08%8.66%10.67%11.01%-8.34%-15.97%-20.28%

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.
Pendal Global Emerging Mkts Oppes – WSForeign Equity - Emerging Markets Index-3.93%-0.15%-0.3%0.02%0.02%0.963.7%5.13%0.910.89

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
Pendal Global Emerging Mkts Oppes – WSYes-https://www.pendalgroup.com/-

Product Due Diligence

What is Pendal Global Emerging Mkts Oppes – WS

Pendal Global Emerging Mkts Oppes – WS is an Managed Funds investment product that is benchmarked against World Emerging Markets Index and sits inside the Foreign Equity - Emerging Markets 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 Global Emerging Mkts Oppes – WS has Assets Under Management of 179.40 M with a management fee of 1.18%, a performance fee of 0.00% and a buy/sell spread fee of 0.61%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the Pendal Global Emerging Mkts Oppes – WS has returned 1.71% in the last month. The previous three years have returned 1.23% annualised and 11.01% each year since inception, which is when the Pendal Global Emerging Mkts Oppes – WS 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 Global Emerging Mkts Oppes – WS first started, the Sharpe ratio is 0.52 with an annualised volatility of 11.01%. The maximum drawdown of the investment product in the last 12 months is -8.34% and -20.28% 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 Global Emerging Mkts Oppes – WS has a 12-month excess return when compared to the Foreign Equity - Emerging Markets Index of -3.93% and -0.15% 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 Global Emerging Mkts Oppes – WS has produced Alpha over the Foreign Equity - Emerging Markets Index of -0.3% in the last 12 months and 0.02% since inception.

What are similar investment products?

For a full list of investment products in the Foreign Equity - Emerging Markets Index category, you can click here for the Peer Investment Report.

What level of diversification will Pendal Global Emerging Mkts Oppes – WS provide?

Pendal Global Emerging Mkts Oppes – WS has a correlation coefficient of 0.89 and a beta of 0.96 when compared to the Foreign Equity - Emerging Markets 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 Global Emerging Mkts Oppes – WS and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Pendal Global Emerging Mkts Oppes – WS with the World Emerging Markets Index?

For a full quantitative report on Pendal Global Emerging Mkts Oppes – WS compared to the World Emerging Markets Index, you can click here.

Can I sort and compare the Pendal Global Emerging Mkts Oppes – WS to do my own analysis?

To sort and compare the Pendal Global Emerging Mkts Oppes – WS financial metrics, please refer to the table above.

Has the Pendal Global Emerging Mkts Oppes – WS 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 Global Emerging Mkts Oppes – WS?

If you or your self managed super fund would like to invest in the Pendal Global Emerging Mkts Oppes – WS please contact via phone or via email .

How do I get in contact with the Pendal Global Emerging Mkts Oppes – WS?

If you would like to get in contact with the Pendal Global Emerging Mkts Oppes – WS manager, please call .

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the Pendal Global Emerging Mkts Oppes – WS. All data and commentary for this fund is provided free of charge for our readers general information.

Historical Performance Commentary

Performance Commentary - May 31, 2021

This Fund is designed for investors who want the potential for long-term capital growth, diversification across a broad range of global emerging market shares and are prepared to accept high variability of returns. The Fund can invest in shares in a range of emerging markets and may also hold cash.

As manager of the Fund, J O Hambro Capital Management (JOHCM) investment process for global emerging market shares aims to add value through a combination of country allocation as well as individual stock selection. JOHCM’s country allocation process is based on analysis of a country’s economic growth, monetary policy, market liquidity, currency, governance/politics and equity market valuation. The stock selection process focuses on buying quality growth stocks at attractive valuations.

Performance Commentary - May 31, 2021

This Fund is designed for investors who want the potential for long-term capital growth, diversification across a broad range of global emerging market shares and are prepared to accept high variability of returns. The Fund can invest in shares in a range of emerging markets and may also hold cash.

As manager of the Fund, J O Hambro Capital Management (JOHCM) investment process for global emerging market shares aims to add value through a combination of country allocation as well as individual stock selection. JOHCM’s country allocation process is based on analysis of a country’s economic growth, monetary policy, market liquidity, currency, governance/politics and equity market valuation. The stock selection process focuses on buying quality growth stocks at attractive valuations

Performance Commentary - April 30, 2021

This Fund is designed for investors who want the potential for long-term capital growth, diversification across a broad range of global emerging market shares and are prepared to accept high variability of returns. The Fund can invest in shares in a range of emerging markets and may also hold cash. As manager of the Fund, J O Hambro Capital Management (JOHCM) investment process for global emerging market shares aims to add value through a combination of country allocation as well as individual stock selection. JOHCM’s country allocation process is based on analysis of a country’s economic growth, monetary policy, market liquidity, currency, governance/politics and equity market valuation. The stock selection process focuses on buying quality growth stocks at attractive valuations.

Performance Commentary - February 28, 2021

This Fund is designed for investors who want the potential for long-term capital growth, diversification across a broad range of global emerging market shares and are prepared to accept high variability of returns. The Fund can invest in shares in a range of emerging markets and may also hold cash.

As manager of the Fund, J O Hambro Capital Management (JOHCM) investment process for global emerging market shares aims to add value through a combination of country allocation as well as individual stock selection. JOHCM’s country allocation process is based on analysis of a country’s economic growth, monetary policy, market liquidity, currency, governance/politics and equity market valuation. The stock selection process focuses on buying quality growth stocks at attractive valuations

Performance Commentary - January 31, 2021

The portfolio underperformed over the month with stock selection, primarily in China, weighing on relative returns. Here, the portfolio suffered from not owning the likes of Tencent (we maintain exposure through Naspers), Alibaba, and Meituan. Our holding in Xinyi Solar was also weak. Our Indian names added value although the top performers were Hong Kong Exchanges, Naspers and Prosus.

We have a steadily evolving interest in the traditionally higher-beta emerging markets, seeing domestic recoveries that have a good distance to run based on current trade balances and on the reset to credit and demand cycles that 2020 created. Also supporting those trade balances are some powerful upward moves in terms of trade (the ratio of export prices to import prices) in some of these economies. Of particular note, is India. After the weak economic environment seen in 2019 and then the effects of the Covid-19 lockdowns, India has seen a powerful demand recovery in recent months. PMIs have generally been printing at above 55 and vehicle sales remain strong. The recovery began into the autumn festive season, and companies were unsure if it would last, but it has. In particular, companies are reporting strong demand and a reduced need to fund promotion and associated expenses to generate sales. Driving the recovery has been urban demand (which slowed in 2019 and 2020, even for FMCG companies, but which has revived as Coivd-19 cases continue to fall), premium segments (as disposable incomes and consumer confidence improve), and real estate (helped by lower mortgage rates and improved affordability).

Performance Commentary - December 31, 2020

The portfolio outperformed in December with our top-down country allocation calls the main driver of relative returns. Our significant overweight position in South Korea and underweight in China proved particularly beneficial, as did our portfolio void in Alibaba.

As both the country first into the 2020 Covid crisis, and one of the (predominantly Asia-Pacific) countries that has seemed to manage the pandemic well, China was the first emerging market to show economic recovery in mid-2020. At the present time, however, we see some challenges to Chinese equities, and have responded by reducing our weight in the country, especially in the light of some of the highly attractive opportunities we find in other markets.

First of these challenges are the signs of a slowdown in Chinese activity in the last quarter of 2020. The other set of challenges concern politics and policy, both within China and internationally. Domestically, the fallout continues from Alibaba founder Jack Ma’s speech in October in which he criticised Chinese regulators. This has happened at broadly the same time as the US government has been ratcheting up restrictions on US investors investing in Chinese state-owned enterprises, principally by targeting the US secondary listings of such companies.

We had already reduced exposure to US-listed Chinese SOEs in the portfolio in 2020, selling CNOOC, Sinopec and China Mobile. We have further reduced our weighting in China, partly in response to the various concerns highlighted above, and also partly in response to the much better macro environments we find in some other emerging markets.

Performance Commentary - November 30, 2020

The portfolio performed somewhat in-line with the benchmark over the month. Our underweight in China and overweight in South Korea added value, as did our Indian holdings. In China, our portfolio void in Alibaba was helpful after the suspension of Ant Financial’s highly anticipated IPO. Although stock selection effects were modestly positive, some of our non-benchmark holdings, namely Barrick Gold, weighed on returns. Barrick Gold was the main laggard as the gold price dipped on the back of more risk-on sentiment as positive vaccine data boosted optimism.

Much of the commentary around the impact of the coronavirus on economies around the world has emphasised the unprecedented nature of the crisis. The outcome, though, is in some senses not new to emerging markets. Sudden, brutal hard stops in domestic consumption and activity, accompanied by capital flight and spectacular correlated sell-offs in equities and currencies, have been a sporadic feature of the asset class since at least the Latin American debt crisis of the early 1980s. That pattern allows us to look for signs as to which economies (and, potentially, markets) are in the best positions to recover.

There are particular indicators that, in our experience, show an economy at least has the foundations of a recovery in place, although history suggests it is usually worth looking for positive momentum in economic indicators and corporate results/expectations as well. Looking at these indicators, two markets stand out as particularly interesting right now: India and South Africa.

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