December, 2020
The Fund outperformed its benchmark in December by 0.06% (pre-fee) returning –0.21% vs a benchmark return of –0.27%. The credit/Government bond component outperformed whilst the overlay was flat. The Fund made the gains from an overweight short end physical position as yields drifted away from Yield Curve Control targets early in the month only to drift back on solid RBA buying by mid-month. The portfolio has a small overweight Australian duration position but focused around the 5yr point of the curve. We remain wary of long end moves into the new year given the strong risk on sentiment in markets in general. The Enhanced Credit Fund returned 0.18% (pre-fee) and outperformed its benchmark over the month of December.
Enhanced Credit’s portfolio performed strongly on the back of its overweight in Infrastructure and underweight in Supranationals. The Supra sector continues to struggle in the low yield environment during COVID. At the end of December this sector had a sector average spread of 22bp compared 48bp for the overall Bloomberg Non-Government Index.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/163562178.pdfticker: RFA0813AU
release_schedule: Monthly
commentary_block: Array
factsheet_url:
https://investmentcentre.moneymanagement.com.au/factsheets/mi/lte3/pendal-wholesale-fixed-interest
Right sidebar -> quick links -> provider’s own factsheet
manager_contact_details: Array
asset_class: Fixed Income
asset_category: Bonds - Australia
peer_benchmark: Fixed Income - Bonds - Australia Index
broad_market_index: Australian Bond Composite 0-10Y Index
structure: Managed Fund
fund_features:
Pendal Fixed Interest aims to provide a return (before fees, costs and taxes) that exceeds the Bloomberg AusBond Composite 0+ Yr Index over the medium term. The return is expected to be comprised primarily of income. This Fund is designed for investors who want income, diversification across a broad range of cash and fixed interest securities and are prepared to accept some variability of returns.
- The Fund aims to take advantage of investment opportunities primarily within the Australian fixed interest market by investing in a combination of Commonwealth government, semi-government and corporate debt and short-term money market securities.
- The Fund may also invest tactically in international fixed interest markets.
- The Fund can use derivatives to achieve its investment objective and to gain exposure to assets and markets.
- Manager Address : Level 14, The Chifley Tower 2 Chifley Square, Sydney NSW 2000, Australia
- Phone : +612 9220 2000
- Website : https://www.pendalgroup.com/
- Contact Email : David.Higgins@pendalgroup.com