Winner: best property securities fund

In May 2019 the Pendal Property Securities Fund was awarded Best Property Securities Fund at the Money Management Fund Manager of the Year Awards.

In announcing the award, Money Management and its research partner Lonsec stated:

The Pendal Property Securities Fund has a ‘core’ investment style with a ‘quality’ bias, and is managed by highly-experienced and long-serving Portfolio Managers Peter Davidson and Julia Forrest. The team benefits from extensive industry contacts and sharing of ideas and news flow ideas from Pendal’s other asset class teams.  The Fund has an extensive track record of outperforming peers over multiple investment cycles. 

Responding to the award, Pendal’s Head of Listed Property Pete Davidson addressed some key questions facing the sector:

1. What do you think drove your strong performance in the last year? How did the management of the Fund contribute to this?

• Our focus on having a valuation toolkit and using a variety of valuation measures meant we could identify value in stocks that had strong equity-style valuation. 

• Traditional NTA based stock valuation lagged. Many NTA supported stocks became value traps rather than traditional value.  

• There was a strong divergence in stock performance, which was better for active managers.


 2. What asset allocations and/or market conditions did you find most advantageous?

• Our overweights in fund managers and industrial, logistics stocks supported our performance.

• Falling bond rates have supported fund managers.

• Underweights to traditional mall / retail assisted our performance. These stocks have been impacted by the weakening macro economic environment in Australia. 


3. Do you anticipate continued strong performance?

• Yes, our portfolio is positioned in pockets of growth and good reliable cash flow, such as child care and traditional industrial property, which will outperform the slowing economy.

• Yes, we are now overweight the Perth and Auckland office markets which have very good and improving fundamentals. 

• Our underweights to traditional mall retail should continue to perform. We believe asset values will decline in this sector over the coming year.


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This article has been prepared by Pendal Fund Services Limited (PFSL) ABN 13 161 249 332, AFSL No 431426 and the information contained within is current as at July 22, 2019. It is not to be published, or otherwise made available to any person other than the party to whom it is provided.

PFSL is the responsible entity and issuer of units in the Pendal Property Securities Fund (Fund) ARSN: 087 593 584. A product disclosure statement (PDS) is available for the Fund and can be obtained by calling 1800 813 886 or visiting You should obtain and consider the PDS before deciding whether to acquire, continue to hold or dispose of units in the Fund. An investment in the Fund is subject to investment risk, including possible delays in repayment of withdrawal proceeds and loss of income and principal invested.

This article is for general information 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 in this article 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 in this article 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 contained in this article are predictive 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.

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