Pendal Sustainable Conservative Fund aims to provide a real return over inflation over the medium term to meet the objectives of conservative investors including tax exempt entities whilst screening for investments which meet the Fund’s sustainable guidelines.
The Fund outperformed the benchmark over the month of December. Active positioning contributed very strongly to returns again in December, rounding off a very successful year for active asset allocation in Pendal’s sustainable diversified funds. Our active tilts at the start of December remained risk-on but less so than the prior month, continuing the recent trend in our positioning as selected markets reach expensive extremes.
The portfolio held overweights in a range of under-valued equity markets, underweights in expensive equity markets, and long volatility carry. Fixed income positions are relative value in nature. In commodities, we held long positions in copper and gold. In equities, our active positioning driven by valuation insights held overweights in Mexico’s Bolsa, long positions in the futures of EURO STOXX 50 dividends paid in the calendar year 2024 and FTSE 100 dividends paid in the calendar year 2023 and overweights to both global and Australian listed property, all of which screened amongst the most under-valued markets in the universe which we monitor.
The portfolio was long equity volatility carry through VIX futures. On the other side, we held short positions the Italian FTSE MIB, French CAC 40 and US S&P-500 indices, all of which are considered expensive within our valuation framework. Our trend-following process held an overweight to S&P-500, offsetting the abovementioned valuation underweight.
At the end of the month new trend-driven overweights were initiated in S&P/ASX-200 and STOXX® Europe 600 ESG-X indices. In fixed income, the portfolio was directionally neutral with modest overweights in Australian and Canadian 10-year bonds offset by underweights in German Bunds, US 10-year Notes and UK Gilts. The Australian “3s-10s curve flattener” (which holds a long position in 10-year bond futures combined with a larger notional short position in 3-year bond futures) was held unchanged and we added to the Australian 10s-20s curve flattener. In commodities, the portfolio continued to hold trend-based long positions in copper and gold. Our active positioning at the start of January is more risk-on than in recent months.
The portfolio is positioned with overweights in a range of under-valued equity markets, underweights in expensive equity markets, long equity volatility carry and overweight markets exhibiting strong upward trends. Fixed income positions are relative value in nature. In commodities, we hold long positions in copper and gold.
What is Pendal Sustainable Conservative Fund Pendal Sustainable Conservative Fund is an Managed Funds investment product that is benchmarked against Multi-Asset Moderate Investor Index and sits inside the Multi-Asset - 21-40% Diversified 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 Sustainable Conservative Fund has Assets Under Management of 53.95 M with a management fee of 0.7%, a performance fee of 0.00% and a buy/sell spread fee of 0.18%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the Pendal Sustainable Conservative Fund has returned 1.18% in the last month. The previous three years have returned 2.56% annualised and 4.06% each year since inception, which is when the Pendal Sustainable Conservative Fund 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 Sustainable Conservative Fund first started, the Sharpe ratio is NA with an annualised volatility of 4.06%. The maximum drawdown of the investment product in the last 12 months is -1.21% and -10.1% 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 Sustainable Conservative Fund has a 12-month excess return when compared to the Multi-Asset - 21-40% Diversified Index of -0.72% and -0.26% 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 Sustainable Conservative Fund has produced Alpha over the Multi-Asset - 21-40% Diversified 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 - 21-40% Diversified Index category, you can click here for the Peer Investment Report.
What level of diversification will Pendal Sustainable Conservative Fund provide?
Pendal Sustainable Conservative Fund has a correlation coefficient of 0.95 and a beta of 1.12 when compared to the Multi-Asset - 21-40% Diversified 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 Sustainable Conservative Fund and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Pendal Sustainable Conservative Fund with the Multi-Asset Moderate Investor Index?
For a full quantitative report on Pendal Sustainable Conservative Fund compared to the Multi-Asset Moderate Investor Index, you can click here.
Can I sort and compare the Pendal Sustainable Conservative Fund to do my own analysis?
To sort and compare the Pendal Sustainable Conservative Fund financial metrics, please refer to the table above.
Has the Pendal Sustainable Conservative Fund 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 Sustainable Conservative Fund?
How do I get in contact with the Pendal Sustainable Conservative Fund?
Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the Pendal Sustainable Conservative Fund. All data and commentary for this fund is provided free of charge for our readers general information.
Product Snapshot
Product Overview
Performance Review
Peer Comparison
Product Details