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

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.

Michael Blayney: A quick overview of asset classes right now

How are different asset classes faring in these rough economic conditions? Here’s a quick snapshot from our multi-asset chief Michael Blayney

THE key risk to equities in coming months is how hard profit margins and earnings are hit by slowing economic growth from rising interest rates, and higher inflation, says Michael Blayney, head of Pendal’s multi-asset portfolios.

For bond investors, high inflation continues to be a headwind. But with a slowing economy, investors need to be ready to shift to the security of bonds if a recession looms.

The de-rating of real assets means there’s some opportunities in real-estate investment trusts and infrastructure, Blayney says, while the prospect of recession makes investing in high yield credit markets more difficult.

The silver lining for (new) investors from falling markets during the past six months is the de-rating of assets.

But the rise in fixed income yields makes other assets, which are priced off bonds, less attractive, Blayney adds.


The valuation backdrop in equity markets has improved, Blayney says.

“We are getting to the position where there’s some opportunities to buy. But we are not at the point of seeing broad based bargains yet.”

Find out about

Pendal Multi-Asset Funds

“US large cap stocks remain expensive, while Australian equities are closer to fair value,” he says.

“The Australian economy and market are not really in bad shape. Our equity market is a value market … and the resources sector is less negatively impacted by inflation.”

“Globally, small and mid-cap equities are fair value, or even cheap, relative to large caps.”

Blayney says lower valuations of small caps partly reflects market sentiment that they’re more likely to underperform in a recession.

But he adds: “For a longer-term investors cheap valuations represent an attractive entry point, to the extent in which a significant amount of ‘bad news’ has already been priced in.”

Similarly for investors with a longer-term horizon, value stocks continue to provide an opportunity in major markets, particularly Europe, Japan, and the small cap end of the US market.

“In addition, a rising interest rate environment should remain supportive of value as a style.

“Value outside of US large caps is the most attractive area to play a value tilt, given the spread in earnings growth for value versus the broader market has been considerably smaller in most other markets than it has been in the large cap end of the US market.”


Bonds remain attractive because of their defensive characteristics, but they still have significant headwinds from inflation.

Adviser Sam is invested
in making our world

A better place.

Watch as Sam meets a
mum rebuilding her life
thanks to responsible

“We generally retain some duration exposure for defensiveness within portfolios, but this is at a lower level than usual,” Blayney says.

“Where possible, we have a preference for inflation protection and Australian exposure within portfolios.”


Investment grade credit offers reasonable returns on a medium-term basis, he says.

“High-yield spreads are now better than they were. However, we believe that the risk of investing in high yield during an economic slowdown outweighs the benefit of higher yields at this point.”

Listed Real Assets

In listed real assets, the increase in interest rates have triggered a de-rating of both global REITs and many listed infrastructure assets.

“Higher bond yields have caused REITs to de-rate significantly, moving A-REITs and global REITs back towards fair value,” Blayney says.

“There are also some attractive opportunities available in listed infrastructure.”

About Michael Blayney and Pendal’s Multi-Asset capabilities

Michael Blayney leads Pendal’s multi-asset team. Michael has more than 20 years of investment management and consulting experience. He was previously Head of Investment Strategy at First State Super and head of Diversified Strategies at Perpetual.

Pendal’s diversified funds provide investors with a variety of traditional and alternative asset classes and strategies.

The team — which also includes Allan Polley — manages our multi-asset portfolios with a focus on strategic asset allocation, active management and tactical asset allocation.

Find out more about Pendal’s multi asset funds:

Contact a Pendal account manager here

This information has been prepared by Pendal Fund Services Limited (PFSL) ABN 13 161 249 332, AFSL No 431426 and is current as at October 12, 2022. PFSL is the responsible entity and issuer of units in the Pendal Multi-Asset Target Return Fund (Fund) ARSN: 623 987 968. 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