Benefits of investing in the Pendal Active Moderate Fund

Investing in the Fund offers investors a range of benefits:

• access to a professionally managed diversified portfolio with the potential for long term capital growth and income;

• access to the investment expertise of Pendal and other leading global investment managers;

• diversification across a broad range of asset classes;

• regular investment statements and an annual tax statement to keep you up-to-date on your investment;

• ability to keep track of your investments in the secure client area by visiting the login section at www.pendalgroup.com.

Risk level

Medium

Investor suitability

This Fund is designed for investors who want the potential for long term capital growth and income, diversification across a broad range of asset classes and are prepared to accept some variability of returns.

About the Fund

The Pendal Active Moderate Fund (Fund) is an actively managed diversified portfolio that invests in Australian and international shares, Australian and international listed property securities, Australian and international fixed interest, cash and alternative investments. The Fund has a similar weighting towards defensive assets as it does towards growth assets.    

Investment Return Objective

The Fund aims to provide a return (before fees, costs and taxes) that exceeds the Fund's benchmark over the medium to long term.

Benchmark

The benchmark for the Fund is created from a range of published indices. The benchmark is based on the asset allocation neutral position and the index returns for each asset class. Details of the particular market indices used for the Fund's benchmark can be found on the product page.

How we invest your money

At Pendal, we actively manage our portfolios to meet their investment objectives by diversifying investments across both asset classes and strategies. We employ three main approaches to do this:

1. Strategic asset allocation - weighted asset class exposures designed to meet the investment objectives over the long term investment horizon
2. Active management - exploitation of market inefficiencies within asset classes
3. Active asset allocation - exploitation of market directionality across asset classes

The underlying investments in the Fund are managed by Pendal together with a number of external partners. Pendal manages investments in the asset classes of Australian shares, Australian fixed interest and cash, global fixed interest, Australian property securities and alternative investments. These investments are augmented by our arrangements with leading global investment managers who have a competitive advantage in the management of global asset classes.

The Pendal Multi-Asset team also manages an active asset allocation process designed to increase portfolio returns within a defined risk budget.

The Fund invests in Australian and international shares, Australian and international listed property securities, Australian and international fixed interest, cash and alternative investments. The Fund may also use derivatives. The Fund has a similar weighting towards defensive assets as it does towards growth assets.    

Asset Classes, Asset Allocation Ranges and Neutral Position

• Australian shares: 10%-30%

• International shares: 0%-20%

• Australian property securities: 0%-15%

• International property securities: 0%-15%

• Australian fixed interest: 10%-45%

• International fixed interest: 3%-30%

• Cash: 0%-20%

• Alternative investments: 0%-20%

Alternative investments refer to a range of investments that do not fall within the four main asset classes of shares, property, fixed interest and cash. They can be based on publicly traded securities like shares, bonds and derivatives, which include hedge funds, absolute return funds and commodity investments. Some alternatives are based on private securities; these include venture capital and private equity. Investment strategies that may be found in some alternative investments include the use of gearing, short selling (selling something you do not own with a view to buying it back later at a lower price), and more extensive use of derivatives.