June, 2023
This Fund is designed for investors who want the potential for long term capital growth and tax effective income, diversification across a broad range of smaller companies and industries and are prepared to accept higher variability of returns. The Fund invests primarily in companies outside the top 100 listed on the Australian Securities Exchange. The Fund may also invest in equivalent companies listed on the New Zealand Stock Exchange, hold cash and may use derivatives.
Pendal’s investment process for Australian shares is based on our core investment style and aims to add value through active stock selection and fundamental company research. Pendal’s core investment style is to select stocks based on our assessment of their long term worth and ability to outperform the market, without being restricted by a growth or value bias. Our fundamental company research focuses on valuation, franchise, management quality and risk factors (both financial and non-financial risk).
The Fund may have assets denominated in foreign currencies. This means that changes in the value of the Australian dollar relative to foreign currencies may affect the value of the assets of the Fund. The Fund’s foreign currency exposure may be hedged from time to time, in whole or part.
Derivatives may be used to reduce risk and can act as a hedge against adverse movements in a particular market and/or in the underlying assets. Derivatives can also be used to gain exposure to assets and markets.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/202737348.pdfDecember, 2022
The Pendal Smaller Companies Fund (Fund) is an actively managed portfolio investing in companies outside the top 100 listed on the Australian Stock Exchange and their equivalent on the New Zealand Stock Exchange that we believe are trading below their assessed valuation, and which we expect to grow their profits quickly.
This Fund is designed for investors who want the potential for long term capital growth and tax effective income, diversification across a broad range of smaller companies and industries and are prepared to accept higher variability of returns. The Fund invests primarily in companies outside the top 100 listed on the Australian Securities Exchange. The Fund may also invest in equivalent companies listed on the New Zealand Stock Exchange, hold cash and may use derivatives.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/195960976.pdfJune, 2022
This Fund is designed for investors who want the potential for long term capital growth and tax effective income, diversification across a broad range of smaller companies and industries and are prepared to accept higher variability of returns. The Fund invests primarily in companies outside the top 100 listed on the Australian Securities Exchange. The Fund may also invest in equivalent companies listed on the New Zealand Stock Exchange, hold cash and may use derivatives. Pendal’s investment process for Australian shares is based on our core investment style and aims to add value through active stock selection and fundamental company research.
Pendal’s core investment style is to select stocks based on our assessment of their long term worth and ability to outperform the market, without being restricted by a growth or value bias. Our fundamental company research focuses on valuation, franchise, management quality and risk factors (both financial and non-financial risk).
The Fund may have assets denominated in foreign currencies. This means that changes in the value of the Australian dollar relative to foreign currencies may affect the value of the assets of the Fund. The Fund’s foreign currency exposure may be hedged from time to time, in whole or part.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/189094286.pdfApril, 2021
This Fund is designed for investors who want the potential for long term capital growth and tax effective income, diversification across a broad range of smaller companies and industries and are prepared to accept higher variability of returns. The Fund invests primarily in companies outside the top 100 listed on the Australian Securities Exchange. The Fund may also invest in equivalent companies listed on the New Zealand Stock Exchange, hold cash and may use derivatives.
Pendal’s investment process for Australian shares is based on our core investment style and aims to add value through active stock selection and fundamental company research. Pendal’s core investment style is to select stocks based on our assessment of their long term worth and ability to outperform the market, without being restricted by a growth or value bias. Our fundamental company research focuses on valuation, franchise, management quality and risk factors (both financial and non-financial risk).
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/171818970.pdfDecember, 2020
The Fund outperformed the benchmark over the September quarter.
Contributors
Overweight Reece (REH)
Plumbing supplies company Reece (REH) delivered a strong set of results despite a challenging year. For the year ending 30 June, REH saw sales revenue grow by only 1% across Australia and New Zealand, given the combined impact of the bushfires and COvid-19. However this was more than offset by 20% revenue growth in the US, which saw Group growth in revenue of 10%. Net profit after tax grew 19%.
Overweight Adairs (ADH)
Homewares company Adairs also delivered a strong result during the quarter, demonstrating resilience in the face of the challenge from Covid. In-store sales fell -7.3% for the year following a five week store closure. However a 110.5% surge in online sales saw total group sales grow 12.9%. Underlying earnings before interest and tax grew 39.7% for the year.
Detractors
Underweight Pointsbet (PBH)
Cloud-based corporate book maker Pointsbet surged after announcing a five year deal to become the official sports betting partner of NBC Sport in the US. There is a position in the portfolio, however it was lower than the index, which dragged on the portfolio’s relative performance.
Overweight Technology One (TNE)
Technology One had a volatile quarter after the release of a research report from a short-selling firm based in Hong Kong. In our view, key issues raised in the report around some accounting outcomes were backward looking, already addressed and reasonably well known. They largely pertain to the company’s shift from a perpetual license to recurring license fee model. We maintain conviction in the company’s continued underlying business success and competitive advantage as a first mover in fully fledged cloud enterprise software solutions.
We continue to believe further value will be unlocked as transitional accounting runs its natural course and investors increasingly see a pure SaaS/(recurring) business clearly emerge in both business and financial accounting terms.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/159533513.pdfticker: RFA0819AU
release_schedule: Quarterly
commentary_block: Array
factsheet_url:
https://investmentcentre.moneymanagement.com.au/factsheets/mi/ltf8/pendal-smaller-companies
Right sidebar -> quick links -> provider’s own factsheet
asset_class: Domestic Equity
asset_category: Australian Micro Cap
peer_benchmark: Domestic Equity - Micro Cap Index
broad_market_index: ASX Index Small Ordinaries Index
structure: Managed Fund
manager_contact_details: Array
fund_features:
Pendal Smaller Companies aims to provide a return (before fees, costs and taxes) that exceeds the S&P/ASX Small Ordinaries (TR) Index over the medium to long term. This Fund is designed for investors who want the potential for long term capital growth and tax effective income, diversification across a broad range of smaller companies and industries and are prepared to accept higher variability of returns.
- The Fund invests primarily in companies outside the top 100 listed on the Australian Securities Exchange.
- The Fund may also invest in equivalent companies listed on the New Zealand Stock Exchange, hold cash and may use derivatives.
- Pendal’s investment process for Australian shares is based on our core investment style and aims to add value through active stock selection and fundamental company research.
- Pendal’s core investment style is to select stocks based on our assessment of their long term worth and ability to outperform the market, without being restricted by a growth or value bias.