Hi there! Welcome to the new look Pendal website... Take a two minute tour to see what we’ve changed.
Login

Mainstream Online Web Portal

Investors can view their accounts online via a secure web portal. After registering, you can access your account balances, periodical statements, tax statements, transaction histories and distribution statements / details.
Advisers will also have access to view their clients’ accounts online via the secure web portal.

Inflation: nowhere to run, nowhere to hide

What does today’s inflation spike mean for investors? Here’s a quick snapshot from Pendal’s head of government bond strategies TIM HEXT

THIS WEEK’S inflation numbers were extremely strong.

Headline at 1.3% on a quarterly basis and 3.5% annual. Underlying inflation at 1% or 2.6% annual.

Unusually there were almost no negative contributions.

New dwellings, food and fuel were the main drivers but the real surprise came from a wider range of goods which normally see little if any inflation.

Clothing, footwear, furnishings and a wide range of everyday items are going up by around 3 to 5% annually.

Some of that of course is supply related and might come down if things normalise later in the year. But for now that is all speculation.

The RBA once again has been railroaded on its forecasts and will need to address this number in next week’s meeting.

Find out about

Pendal’s Income and Fixed Interest funds

The only thing they can still hang their dovish hat on is wages — but given labour shortages that may move quicker in the year ahead.

Markets actually took the numbers in their stride.

That’s likely because most knew a higher number was a good chance — but also against the current backdrop of risk-off in equities and credit.

Four rate hikes are priced for 2022 with the first in May.

The RBA would have thought that too aggressive, but now may be forced to admit the market has been better at reading the economy.

Although this week’s numbers give support to concerns around inflation, we still don’t expect an unhinging of inflation from the medium term 2% to 3% band.

For investment markets that would not be a bad result.

After all, 2% to 3% is still considered low — and business investment and the economy in general can easily handle that.


About Tim Hext and Pendal’s Income & Fixed Interest boutique

Tim Hext is a Pendal portfolio manager and head of government bond strategies in our Income and Fixed Interest team.

Tim has extensive experience in banking, financial markets and funding including senior positions with NSW Treasury Corporation (TCorp), Westpac Treasury, Commonwealth Bank of Australia, Deutsche Bank, Bain & Co and Swiss Bank Corporation.

Pendal’s Income and Fixed Interest boutique is one of the most experienced and well-regarded fixed income teams in Australia.

The team won Lonsec’s Active Fixed Income Fund of the Year award in 2021 and Zenith’s Australian Fixed Interest award in 2020.

Find out more about Pendal’s fixed interest strategies here


About Pendal Group

Pendal is an independent, global investment management business focused on delivering superior investment returns for our clients through active management.

Contact a Pendal key account manager


This information has been prepared by Pendal Fund Services Limited (PFSL) ABN 13 161 249 332, AFSL No 431426 and is current as at January 25, 2022.

PFSL is the responsible entity and issuer of units in the Pendal Monthly Income Plus Fund (ARSN: 137 707 996) and Pendal Dynamic Income Fund (ARSN: 622 750 734) (Funds). A product disclosure statement (PDS) is available for the Fund and can be obtained by calling 1300 346 821 or visiting www.pendalgroup.com. The Target Market Determination (TMD) for the Fund is available at www.pendalgroup.com/ddo. You should obtain and consider the PDS and the TMD before deciding whether to acquire, continue to hold or dispose of units in the Fund.

An investment in the Fund or any of the funds referred to in this web page is subject to investment risk, including possible delays in repayment of withdrawal proceeds and loss of income and principal invested.

This information is for general purposes only, should not be considered as a comprehensive statement on any matter and should not be relied upon as such. It has been prepared without taking into account any recipient’s personal objectives, financial situation or needs. Because of this, recipients should, before acting on this information, consider its appropriateness having regard to their individual objectives, financial situation and needs. This information is not to be regarded as a securities recommendation.

The information may contain material provided by third parties, is given in good faith and has been derived from sources believed to be accurate as at its issue date. While such material is published with necessary permission, and while all reasonable care has been taken to ensure that the information is complete and correct, to the maximum extent permitted by law neither PFSL nor any company in the Pendal group accepts any responsibility or liability for the accuracy or completeness of this information.

Performance figures are calculated in accordance with the Financial Services Council (FSC) standards. Performance data (post-fee) assumes reinvestment of distributions and is calculated using exit prices, net of management costs. Performance data (pre-fee) is calculated by adding back management costs to the post-fee performance. Past performance is not a reliable indicator of future performance.

Any projections are predictive only and should not be relied upon when making an investment decision or recommendation. Whilst we have used every effort to ensure that the assumptions on which the projections are based are reasonable, the projections may be based on incorrect assumptions or may not take into account known or unknown risks and uncertainties. The actual results may differ materially from these projections.

For more information, please call Customer Relations on 1300 346 821 8am to 6pm (Sydney time) or visit our website www.pendalgroup.com

Keep updated
Sign up to receive the latest news and views