Sandhurst Strategic Income B (STL0044AU) Report & Performance

What is the Sandhurst Strategic Income B fund?

Sandhurst Strategic Income B aims to outperform the performance benchmark (after fees) over any two year period. The fund seeks to invest in a diversified portfolio of mainly domestic interest bearing securities across a range of maturities. The Fund will adjust its investments in line with our view of prevailing market conditions to optimize returns and control volatility.

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For Sandhurst Strategic Income B

Sandhurst Strategic Income B Fund Commentary September 30, 2023

The Sandhurst Strategic Income Fund (Class A units) delivered an annualised return of 5.88% (after fees) through the quarter ending 30 September and has generated an average annual return of 2.79% (after fees) since inception. The Fund continues to outperform its benchmark and the running yield differential to the benchmark of 1.42% at the end of the quarter will support the Fund’s ability to generate income to unitholders.

The domestic credit market exhibited low volatility and outperformed through the quarter whereas global risk assets were generally weaker. Strong services inflation in the US coupled with tight labour markets indicated persistent inflationary pressures which led to an increase in bond yields globally and saw equities underperform.

There were no notable changes to the RBA’s approach to tame inflation through the period despite a stronger than expected monthly CPI print for August. Michelle Bullock replaced Phillip Lowe as the new Governor for the September meeting but the script from the prior meetings was retained. Whilst there has been limited change from the RBA’s rhetoric in recent times, the quarterly inflation reading in addition to updated forecasts from the RBA in November could see shifts in upcoming meetings.

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.
Sandhurst Strategic Income BSTL0044AUManaged FundsFixed IncomeAustralian Short Term Fixed InterestFixed Income - Australian Short Term IndexAustralian Bond Bank 0+Y Index89.34 M0.45%00.13%

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.
Sandhurst Strategic Income B0.47%1.28%5.78%3.47%3.3%0.33%0.85%0.73%0%-0.56%-1.08%

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.
Sandhurst Strategic Income BFixed Income - Australian Short Term Index0.06%0.32%NA%NA%NA%-0.080.51%0.39%-0.080.85

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
Sandhurst Strategic Income BYes-https://www.bendigoadelaide.com.au/-

Product Due Diligence

What is Sandhurst Strategic Income B

Sandhurst Strategic Income B is an Managed Funds investment product that is benchmarked against Australian Bond Bank 0+Y Index and sits inside the Fixed Income - Australian Short Term 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 Sandhurst Strategic Income B has Assets Under Management of 89.34 M with a management fee of 0.45%, a performance fee of 0 and a buy/sell spread fee of 0.13%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the Sandhurst Strategic Income B has returned 0.47% in the last month. The previous three years have returned 3.47% annualised and 0.73% each year since inception, which is when the Sandhurst Strategic Income B 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 Sandhurst Strategic Income B first started, the Sharpe ratio is NA with an annualised volatility of 0.73%. The maximum drawdown of the investment product in the last 12 months is 0% and -1.08% 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 Sandhurst Strategic Income B has a 12-month excess return when compared to the Fixed Income - Australian Short Term Index of 0.06% and 0.32% 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. Sandhurst Strategic Income B has produced Alpha over the Fixed Income - Australian Short Term 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 Fixed Income - Australian Short Term Index category, you can click here for the Peer Investment Report.

What level of diversification will Sandhurst Strategic Income B provide?

Sandhurst Strategic Income B has a correlation coefficient of 0.85 and a beta of -0.08 when compared to the Fixed Income - Australian Short Term 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 Sandhurst Strategic Income B and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Sandhurst Strategic Income B with the Australian Bond Bank 0+Y Index?

For a full quantitative report on Sandhurst Strategic Income B compared to the Australian Bond Bank 0+Y Index, you can click here.

Can I sort and compare the Sandhurst Strategic Income B to do my own analysis?

To sort and compare the Sandhurst Strategic Income B financial metrics, please refer to the table above.

Has the Sandhurst Strategic Income B 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 Sandhurst Strategic Income B?

If you or your self managed super fund would like to invest in the Sandhurst Strategic Income B please contact via phone or via email .

How do I get in contact with the Sandhurst Strategic Income B?

If you would like to get in contact with the Sandhurst Strategic Income B manager, please call .

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the Sandhurst Strategic Income B. 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 - June 30, 2023

The Sandhurst Strategic Income Fund (Class A units) achieved an annualised quarterly return of 4.86% (after fees) for the June quarter. The running yield of the Fund is 1% greater than the benchmark. During the second quarter, credit markets experienced gains, primarily led by the United States, where the technology sector benefited from increased enthusiasm surrounding Artificial Intelligence (AI) stocks. Most major central banks (with the exception of the US Federal Reserve) raised interest rates, resulting in higher government bond yields.

Economic indicators across different regions provided mixed signals, which kept investors focused on forthcoming data releases. Commodities, particularly industrial metals and the energy sectors, faced declines due to concerns of a recession. Australian credit displayed mixed performance. The technology sector outperformed significantly. Utilities, energy, and industrials performed well, bucking offshore trends. Conversely, healthcare, materials, and consumer discretionary sectors experienced losses.

The Australian yield curve inverted last quarter, which potentially signals a recession. However, most investors have downplayed the significance of this inversion. In contrast, the US yield curve is deeply inverted. Short term yields in Australia rose due to higher-thananticipated inflation. Australian credit markets witnessed a healthy level of new issuance that supported the broader market. New deals were oversubscribed leading to a compression of credit spreads. Residential Mortgage-Backed Securities (RMBS) saw a pickup in issuance with $13bn in Australian dollar deals across 21 transactions.

Performance Commentary - March 31, 2023

The Sandhurst Strategic Income Fund (Class A units) has achieved an annualised quarterly return of 3.52% (after fees) for the March quarter. The Fund saw an increase in returns throughout the March quarter which was reflected in a distribution per unit that was ≈43% greater than the December distribution. Global financial markets at the start of 2023 were characterised by a strong rally across equity and credit markets as an expectation for the Federal Reserve (Fed) to cut rates later in the year gained traction.

Elevated inflationary data and the tight labour markets that were recurring themes in 2022 then returned in February which increased recessionary fears and saw equities retrace some of their January gains. Concerns about a potential banking crisis emerged in early March with the collapse of Silicon Valley Bank (SVB) following deposit outflows after a failed capital raise. The demise of SVB saw depositor confidence plummet and the resulting outflows of Signature Bank deposits saw it become the third largest bank failure in US history. The broader contagion was not just limited to the US as the already beleaguered Credit Suisse became the third casualty in the span of less than a fortnight.

Regulators moved quickly in response by providing guarantees on certain deposits while the Fed supported the liquidity and stability of the banking system by providing access to cheap funding. The Sandhurst Strategic Income Fund did not hold any investments with SVB, Signature Bank or Credit Suisse.

Performance Commentary - December 31, 2022

The Strategic Income Fund (Class B) achieved an annualised return of 3.28% (after fees) for the quarter ending 31 December and an average annual return of 2.97% (after fees) since inception. The Fund continues to outperform its benchmark and saw an increase in returns throughout the December quarter which was reflected in a distribution per unit that was 30% greater than the prior distribution at the end of September. Global markets experienced a tumultuous 2022 with persistent volatility creating challenging conditions. However, the final quarter of 2022 saw gains on risk assets globally as investors became optimistic on an improving outlook for 2023. A defining moment was the relaxation of China’s zerocovid policy bolstering emerging markets, and other developed regions. The market reacted favourably to a meeting between US President, Joe Biden, and Chinese leader Xi Jinping in November, which signalled the possibility of improving US-China relations.

The UK emerged from its September crisis ending in positive territory. The latter stages of 2022 saw the Eurozone show signs of slowing inflation, mirroring similar trends in the US. Following the softer inflation prints, investors had become hopeful of an easing in monetary policy. Government bond yields were slightly higher at the end of the quarter, reflecting the continued commitment from major central banks to tighten monetary policy to bring inflation back to the ranges of the respective region. Australian equities posted strong performance returning 6.5% outperforming many international markets. Benefitting from China’s pivot on its zero COVID policy, softening inflation and a broad stabilisation in global bonds.

Performance Commentary - September 30, 2022

The Strategic Income Fund (Class B units) has achieved an average annual return for the past two years of 0.78% (after fees) and has generated an average annual return of 2.96% (after fees) since inception. The Fund continues to outperform its benchmark and saw an increase in returns throughout the September quarter which was reflected in a distribution that was 2.8 times greater than the distribution at the end of June. Geopolitical tensions and hawkish central bank actions to combat inflationary pressures saw elevated volatility in credit persist. Rate markets continue to drive directionality in equities as well as credit and the quarter ended with the Bank of England attempting to calm domestic markets to prevent pension funds from collapsing. The start of the quarter had several economic data prints indicating a slowdown in the global economy causing markets to rise briefly over the possibility of an earlier Fed pivot. News from the Jackson Hole Summit in August dashed hopes of a near term pivot from the US Central Bank as Fed Chair Jerome Powell highlighted the Federal Reserve’s commitment to quell inflation. This set the hawkish tone which was later reaffirmed by a worse than expected US CPI report in September. As the quarter progressed, offshore markets were challenged as the ongoing energy crisis in Europe coupled with rising inflation and tightening monetary policy weighed. The UK mini budget announced the biggest of package tax cuts in the region since the early 1970s increasing volatility and resulting in cable falling to an all time low. The fallout required the Bank of England to revert to Quantitative Easing to prevent pension funds from collapsing and has weakened market sentiment.

Performance Commentary - June 30, 2022

The Strategic Income Fund has achieved an average annual return for the past two years of 0.39% (after fees) and has generated an average annual return of 2.68% (after fees) since inception. Over the past quarter, the Fund paid a distribution of 0.0955 cents per unit, equating to 0.382% p.a. but lost some capital value due to market movements to produce a negative return of 0.08% for the quarter. The second quarter of 2022 saw the global growth narrative continue to soften as inflation pressures grew, the war in Ukraine continued, energy crisis expanded, and central banks withdrew accommodative monetary policy. Sustained weakness in equity and bond markets saw the US equity market experience its worst return for the first half in 60 years as a circa 20% decline put the market into bear territory. Other global markets also saw heavy losses on a growing lack of confidence amongst investors.

Inflationary pressures have been a main driver of the negative performance in markets. Consumer price index readings across the globe have registered much higher than anticipated and central banks have struggled to combat the increase in prices. The US Federal Reserve (Fed) became more aggressive in their rate hikes and reset expectations of how high rates could go. The pace and extent of rate hikes built fears of a recession late in the quarter spurring further volatility across markets. The dynamics of the geopolitical.

Performance Commentary - March 31, 2022

The Strategic Income Fund has achieved an average annual return for the past two years of 1.33% (after fees) and has generated an average annual return of 3.06% (after fees) since inception.

The elevated volatility seen in late February in credit markets persisted in March and liquidity was constrained as Russia’s invasion of Ukraine further fuelled existing inflationary pressures. These developments drove the risk-off theme and widened spreads which resulted in capital losses across credit markets.

Revised expectations for more aggressive monetary tightening in the U.S. to combat inflation (CPI report showed a 12-month rise of 7.9%) and a 25bp increase in the fed funds rate at the FOMC meeting did not weigh on equities as the S&P 500 rose by 5.2% through March. Despite the increase in equities, slower earnings growth, reduced fiscal stimulus from the government, stagflation risks and geopolitical tensions have created uncertainty for global equities moving forward and suggest that the bounce in March could represent a bear-market rally. Comparatively, Australian equity markets outperformed global benchmarks as the ASX 200 rose by 5.7%

Performance Commentary - February 28, 2022

In late February markets saw heightened volatility as geopolitical tensions spiked in relation to Russia’s invasion of Ukraine, prompting a risk-off move in markets. Bond yields also rose as the likelihood of monetary tightening from central banks increased due to elevated inflation. The combination of geopolitical and monetary policy risks pushed credit spreads (the difference between the yield on credit assets and risk-free assets) wider translating to capital losses across credit markets. Commodities prices also soared as the war in Ukraine threatened to push shortages further.

Due to the late-month volatility, the Strategic Income Fund achieved a -0.08% return (after fees) for the month. The return was impacted by capital volatility across credit markets. The Fund has produced a positive return of 0.28% over the 12 months to 28 February 2022. Since inception the Fund has produced an average return of 2.80% p.a.

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