Pendal Global Select Fund
Pendal Global Emerging Markets Opportunities Fund has a track record of almost 10 years.
The fund aims to provide a return (before fees, costs and taxes) that exceeds the MSCI Emerging Markets (Standard) Index (Net Dividends) in AUD over the long term. The suggested investment time frame is seven years or more.
At June 30, 2022 the fund had returned 7.33% (post-fee) since inception in November 2012, compared to 6.81% for the benchmark.
Over two years to June 2022 the fund had returned 3.36% (post fees) compared to 1.25% for the benchmark.
View the full performance table below.
|1m||3m||1yr||3yr (p.a)||5yr (p.a)||% since inception 07/11/2012|
|Total return (Before fees and tax)||0.82||0.78||-7.00||2.11||2.89||8.57|
|Benchmark: MSCI Emerging Markets (Standard) Index (Net Dividends) in AUD||-2.57||-6.27||-18.98||-2.01||0.49||5.70|
|Total return After fees||0.72||0.49||-8.08||0.89||1.58||7.13|
Source of fund performance data: Pendal. Past performance is not a reliable indicator of future performance. This information is for general information and is not to be regarded as a securities recommendation. Where performance returns are quoted “After fees” then this assumes reinvestment of distributions and is calculated using exit prices which take into account management costs but not tax you may pay as an investor. Where “Growth” returns are shown, these represent the percentage change in the value of units in the fund excluding any distributions paid. “Distribution” returns equal the difference between the “Total return (After fees)”, and the Growth return. Where performance returns are quoted “After fees and tax”, they are calculated using exit prices which take into account management costs and taxes paid within the trust up to a maximum of 15%. Where performance returns are quoted “Before fees and tax”, they exclude the effects of management costs and any taxes. You can view our Unit Pricing Discretions Policy here.
Emerging Market equities are a good strategic allocation to which Australian investors are typically under-exposed.
Emerging market economies are about 44% of global GDP but only 12% of global stock markets.
A typical Australian investor has an even smaller allocation to EM equities.
Emerging markets can often behave differently to developed markets, offering the benefits of portfolio diversification.
Stronger economic growth can drive higher long-term equity market returns in this asset class, as these graphs show:
A country-driven approach is our key advantage and point of difference.
Top-down factors (for example growth, interest rates, currencies, political risk) are common drivers of companies and stocks.
Bottom-up consensus alternatively ignores and then over-reacts to top-down developments.
This can create opportunities for country-driven EM investors.
Our allocation process is based on analysis of a country’s economic growth, monetary policy, market liquidity, currency, governance, politics and equity market valuation.
Emerging markets are not homogenous and are far more diverse than developed markets.
In emerging markets, the country effect accounts for 60% to 85% of systematic risk versus 20% to 40% in developed markets.
Then our stock selection process focuses on buying quality growth stocks at attractive valuations.
The process starts at country-level, as outlined above.
We start with a universe of about 4000 listed EM companies.
We identify countries that are attractive in the current environment – and then the specific parts of that market which offer the best opportunity.
We then look at individual companies. We only include stocks with sufficient liquidity to allow us to shift the portfolio relatively quickly.
We do not buy global stocks (such as Google, Apple, Porsche, Unilever) as EM proxies.
We also do not have significant exposure to frontier markets.
The process is outlined in this diagram below:
Senior Fund ManagerRead bio
James has nearly three decades of experience leading emerging markets funds. Throughout his career he has been responsible for more than 14 mandates with peak FUM of $4 billion. He previously headed the EM investment team at Baring Asset Management, where he managed numerous strategies with his colleague Paul Wimborne. James holds a Bachelor of Arts (Geography).
Senior Fund ManagerRead bio
Paul has more than two decades of experience in EM strategies and funds management. He previously worked with James Syme at Baring Asset Management. Paul is an affiliate member of the CFA and holds a Bachelor of Science (Management and Chemical Sciences).
Fund ManagerRead bio
Before joining Pendal Group, Ada spent three years at GMO as an investment Analyst for the UK. She previously worked at Baring Asset Management as an equity research analyst in London and in Boston. Ada holds a MSc in Computer Information Systems and BA in Business Administration.
Head of Distribution
Head of Independent Licensee Distribution
Head of High Net Worth Distribution
Head of Institutional
The Pendal Global Emerging Markets Opportunities Fund is an actively managed portfolio of global emerging market shares. The portfolio is managed by J O Hambro Capital Management Limited.
The Fund aims to provide a return (before fees, costs and taxes) that exceeds the MSCI Emerging Markets (Standard) Index (Net Dividends) in AUD over the long term.
MSCI Emerging Markets (Standard) Index (Net Dividends) in AUD
|Distribution (cpu):||3.494 (30.06.2022)|
1.18% p.a. Other fees and costs also apply – please refer to the PDS or ‘Fees and costs’ flyer for more information
|Buy Sell spread||
An investment fund is subject to a number of risks. For a detailed description of these risks please refer to the PDS.