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: Now would be a very good time to revisit your asset allocation

Investors should be taking the time to review portfolios amid geopolitical tensions and economic uncertainty, says Pendal’s head of multi-asset, MICHAEL BLAYNEY

HOW should investors be thinking about asset allocation right now, amid Middle East tension and economic uncertainty?

Pendal’s multi-asset chief Michael Blayney is neutral on bonds and slightly underweight equities.

But in both asset classes there are opportunities in selected markets, he says.

And there are opportunities in real assets such as listed infrastructure and property, Blayney believes.

“We’ve seen weakness in equities, though there has been a small bounce back.

“Bond yields have marched upwards as investors price in the likelihood of higher interest rates for longer – but they now provide good compensation for inflation risk.

“Bonds should also fulfil their traditional role as a safe haven asset in the event that the crisis in the Middle East broadens.”

No panic

Blayney says a noticeable feature of the market response to the crisis in the Middle East, is a lack of panic.

“The human toll is tragic, but it hasn’t triggered massive volatility in markets.

Find out about

Pendal Multi-Asset Funds

“So far, oil prices have risen but remain below last year’s peak.

“Bonds yields initially fell, but have since risen again. Equities — aside from a modest move down on Wednesday night — have been pretty relaxed.”


Pockets of value are emerging in some bond markets, Blayney says.

“Canadian bonds have started to become quite cheap. Australian and US bonds have also been heading into cheaper territory.

“For investors looking to add defensiveness to a portfolio, current government bond pricing is pretty attractive.”

Global equities

Blayney’s multi-asset funds are still underweight US equities.

“It’s a very small underweight in our balanced fund. Equities are priced based on a soft-landing scenario in the US.

“Equities will be sensitive to any bad news, and there’s downside risk associated with that.

“Outside the US, valuations on equities aren’t egregious, and even within the US it’s the large caps that are really expensive.

“There are a few markets in Europe which are a bit expensive, but places like the UK and Japan are relatively cheap.”

Real assets

There are opportunities in real asset classes, Blayney believes.

“Right now you can buy on a 20 to 25 per cent discount to net asset value, things like operating renewables. That gives you quite a bit of margin if discount rates go up.”

Part of the reason for the discount is rising interest rates, but Blayney points out that some of the assets have inflation indexed cash flows.

“In those assets, rising rates haven’t been as bad for net asset values as what otherwise would have been.

“Also, last time we saw a spike in energy prices, assets with a linkage to those prices did well. However there is always a risk of government interference in the market.”

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 at October 18, 2023. 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.

While 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