Close
Leave Feedback
Welcome to the new btim.com.auTake a two minute tour to see what we've changed
Hi there! Welcome to the new look Pendal website... Take a two minute tour to see what we’ve changed.
Mainstream Online Web Portal
LoginInvestors 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.
The Point
Quick, actionable insights for investors
May 29
The headlines driving Aussie equities | Falling USD should lift EMs | Where to find opportunities in theme-driven markets
Loading posts...
Elise McKay: The headlines driving Aussie equities this week
Quick view
Elise McKay: The headlines driving Aussie equities this week
Here are the main factors driving the ASX this week, according to Aussie equities analyst and portfolio manager ELISE MCKAY and reported by head investment specialist CHRIS ADAMS
Read Pendal’s latest weekly equities overview.
Crispin Murray: Where to find ASX opportunities amid ‘theme-driven’ market noise
Quick view
Crispin Murray: Where to find ASX opportunities amid ‘theme-driven’ market noise
Share prices are increasingly moved by popular themes like AI disruption, trade wars, and tariff fears – without regard to company fundamentals or long-term valuations.
As a result, quality Australian companies with sound outlooks and predictable cash flows are being indiscriminately sold off.
That’s creating opportunities for active fund managers, Pendal’s head of equities Crispin Murray told Morningstar’s 2025 investment conference in Sydney last week.
“We believe this is creating more distortions in the market. It means the amplitude of mispricing is greater, and it lasts longer.”
Global market dislocation means the ASX has a range of industrial companies with predictable cash flows and returns that have been sold down and offer opportunities for investors, he says.
“One example is CSL – one of Australia’s largest, most successful companies. Five years ago it was running high – at an over-40 multiple. It’s now down to about 22 times earnings,” he says.
Fears of the impact of tariffs on CSL are misplaced, assuming the company doesn’t do anything to respond – “and I think that’s where the market’s overreacting,” argues Crispin.
“We think the risk on the tariff front is being overstated, and that’s what’s providing you the opportunity.” Pendal owns CSL.
Read more
‘Emerging markets crisis’? That’s a wildly overstated view, say our experts
Quick view
‘Emerging markets crisis’? That’s a wildly overstated view, say our experts
Some analysts have described a pattern of a weaker dollar and rising bond yields in the US as a ‘classic emerging markets crisis’.
“As veterans of actual emerging crises dating back to 1994, we consider that view to be wildly overstated,” writes Pendal’s EM team in their latest analysis.
In spite of volatility and weakness in core US financial markets, the currencies of almost all emerging markets strengthened against the US dollar in March and April. Meanwhile bond yields fell for the majority of major EMs.
“Emerging markets are driven by two major global drivers: international capital flows and international trade.
“A weaker dollar represents capital flowing out of the US and into the rest of the world – and a weaker dollar has consistently been positive for emerging markets over the past 30 years.
“Although evolving tariff policies threaten a downturn in global trade, the message from financial markets is that investor uncertainty about US economic policies is a clear positive for emerging economies and for investors in emerging markets.”
Read more
Amy Xie Patrick: China, the US, and the value of uncertainty
Quick view
Amy Xie Patrick: China, the US, and the value of uncertainty
This month’s divergence in US and China rates policies wasn’t just a curiosity for money managers, observes Pendal’s head of income strategies, Amy Xie Patrick.
“It’s a study in contrasts, a reflection of deeper structural differences, and a reminder that policy effectiveness doesn’t always come wrapped in transparency or even democracy,” says Amy in her latest markets analysis.
On May 7, the US Fed left rates unchanged despite growing political pressure. Meanwhile, the People’s Bank of China delivered another dose of stimulus.
“One central bank faced market criticism over its non-committal guidance,” notes Amy. “The other moved swiftly and silently, without needing to justify its decision.
“Perhaps the most contrarian yet valuable takeaway is that less policy guidance may be a good thing.
“By avoiding the hard task of forecasting far into the future, we free ourselves from unhelpful narratives may that turn out to be false.
“By focusing on getting it right rather than always being right, we’re able to preserve the flexibility to change course when the fundamentals change.”
Read Amy’s full article here
Latest updates from our fund managers
Income and Fixed Interest
Tim Hext: Australia to expect state budget downgrades
June 25, 2025
See all
Emerging Markets
Emerging markets: Look past commodity exports to countries with strong domestic demand
July 26, 2023
See allSubscribe to The Point
Get regular insights on investing, market analysis and portfolio management from the experts at Perpetual Group.
Follow
The Point
These podcasts are for general information purposes only, should not be considered as a comprehensive statement on any matter and should not be relied upon as such. They have been prepared without taking into account any recipient’s personal objectives, financial situation or needs. Because of this, recipients should, before acting on the information, consider its appropriateness having regard to their or their clients’ individual objectives, financial situation and needs. The information is not to be regarded as a securities recommendation.
The information in these podcasts 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 presentation is complete and correct, to the maximum extent permitted by law neither Pendal nor any company in the Pendal group accepts any responsibility or liability for the accuracy or completeness of this information.
Any projections contained in these podcasts are predictive 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.
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.
For more information, please call Customer Relations on 1300 346 821 8.00am to 6:00pm (Sydney time) or visit our website www.pendalgroup.com
FAST PODCAST: Not all income funds are well positioned for rising bond yields
Bond yields have been rising and fixed income investing is gaining advocates.
But not all income funds are in the right position to take advantage says Pendal’s head of income strategies Amy Xie Patrick.
“One year ago, to invest in risk-free bonds in Australia, you were getting paid virtually nothing,” says Amy in her latest podcast. “Now you’re getting paid nearly 2.5%.
“But if you don’t have the flexibility within your portfolios to take advantage of this higher-yield environment, then this is a really large prize you are being forced to forego.
“Investors need to look at what kind of income fund they’re getting into. Is it a buy-and-hold, steady as she goes, let’s-not-do-much-about-it kind of income fund?
“Or has your income fund actually been incredibly active to insulate you against the rising interest rate risks, the rising macro risks, that have occurred over the last 6-to-12 months?
“The latter is positioned with more flexibility – and more dry powder – to take advantage of the higher yields we have today.”
Chris Lees: Why Ukraine tragedy is a geopolitical and financial inflection point
Play podcastChris Lees: Why Ukraine tragedy is a geopolitical and financial inflection point
It’s now clear the humanitarian tragedy in Ukraine is a major inflection point for geopolitics as well as financial markets, says Pendal Global Select Fund co-manager Chris Lees.
There are three points to understand, says Chris in Pendal’s latest fast podcast.
“Number one, obviously it’s a tragic humanitarian disaster, but it’s interesting watching how the West is rallying around to help where it can.
“Two, it is a genuine geopolitical inflection point. We must recognise that it will affect our children and our grandchildren. Germany has basically ripped up its pacifist constitution. Swiss banks have for the first time enforced US sanctions.
“Third, this is a genuine financial market regime shift. Like when water turns to ice, you’ve got to stop swimming. Then when ice turns back to water, you have to stop ice-skating.
“We’re seeing things like the rotation from growth to value seeming to stop since the Ukraine invasion. Now there’s a rotation from value to defensive, low beta, quality growth stocks for example.
“Those are the type of medium-to-long-term things we think people should be looking for.”
FAST PODCAST: What rates expectations mean for bond-buying
Play podcastFAST PODCAST: What rates expectations mean for bond-buying
Investors should be looking to upweight bonds in their portfolios on a medium-to-long term outlook, argues Pendal’s TIM HEXT in this fast podcast.
Bonds are starting to get towards levels where you could argue in the medium-to-longer term they make a lot more sense.
It’s been very difficult for me as a bond fund manager over the last couple years to recommend that bonds were a good investment down at 1%. The risks were much more to the upside.
Global equities: Which sectors look best right now
Quick view
Global equities: Which sectors look best right now
“You want to sharpen your pencil because there might be some early birthday presents through this year,” says Pendal’s Nudgem Richyal when asked about the current market volatility – and in particular long-duration stocks in sectors like tech.
“Some of these stocks actually have pretty good business models and maybe the valuation just got a little bit overextended,” says Nudgem, who co-manages Pendal Global Select Fund. “This will be a healthy correction for those type of names.
“We think it’s too early to bet on a complete regime shift. At the moment the commentary seems to be hawkish… But we haven’t even had a rate hike yet.
“The other thing to bear in mind is value rallies tend to be short lived. So if you look at the other side – which are the short-duration stocks and how do they fare in this type of market environment? – generally they tend to do well, but it doesn’t last that long. So that becomes a market timing issue.
“The last thing is – if growth starts to slow, is there really going to be much longevity to the rate hike cycle?”
Get ready as China edges away from zero-Covid policies
Quick view
Get ready as China edges away from zero-Covid policies
“The trend [in yields] has definitely been changing”, says Amy Xie Patrick, Pendal’s Head of Income Strategies.
“What you’ve been seeing is not only that nominal yields have been rising, but real yields have also started to rise.”
What does that mean for investors?
“The rise in real yields really reflects at an economic level, a sense that the market is expecting growth to start to return to a very healthy and positive trajectory,” says Amy in her latest fast podcast.
“Positive real yields are a sign the economy is going to be thriving. Negative real yields are a sign the economy is going to be stagnating.
“The fact that real yields have been trending up — and in our view will go positive at some point in 2022 and continue to trend up — is a good sign for the economy.”
FAST PODCAST: Speedy shoppers are buying more but not hanging around for long
Play podcastFAST PODCAST: Speedy shoppers are buying more but not hanging around for long
“If you look at the performance of the REITs sector during the month of February, retail was actually the strongest sector.
Even though there was a lot of disruption during the period because of Covid – and there was rental relief granted and earnings were a bit softer – the actual operating metrics themselves were improving.
So you’ve seen improving occupancy levels, leasing spreads are improving, interest in pre-leasing is improving.
Interestingly, we’re still seeing foot traffic down 20 per cent on 2019 levels, but it’s been more than compensated by the average spend which is up about 30%.
So people know what they’re going to buy when they go to shopping centres. They’re not there for particularly long. They don’t go as often as they used to, but they spend more.
FAST PODCAST: What makes this cycle different – and which data investors should be watching
Play podcastFAST PODCAST: What makes this cycle different – and which data investors should be watching
Every cycle is slightly different, says Pendal global equities PM Chris Lees in our latest Pendal Fast Podcast.
What’s different this time?
“The Fed is starting to raise interest rates as the global economy’s already slowing,” says Chris. “In the past, the Fed was raising interest rates as the global economy was still accelerating – but because of Covid it got delayed.
“This time is slightly different in that the Fed hasn’t even started raising rates – it’s talking about it.
“Actually, if you look at GDP growth rates, they’re beginning to slow and inflation rates are probably peaking. So it’ll be a very volatile time for financial assets. It always is when interest rates go up.
“It’ll be slightly different from previous playbooks because the timing and the sequencing is different.”
Where will we land? “The bullish potential is that actually this is a normal mid-cycle correction. [But] it’s too early to tell at the moment.
“There is potential for a bear market, says Chris. “It’s a low probability potential at the moment, but every day the probabilities of that are drifting up.”
Impact investing: the blood test that could screen early-stage cancers
Quick view
Impact investing: the blood test that could screen early-stage cancers
A blood test that can diagnose and monitor the progression of cancer and other diseases?
Liquid biopsy is just one emerging diagnostics innovation that Regnan’s impact investing team believes can enable a transition towards a more proactive and preventative healthcare model.
The procedure has its origins as far back as the 19th century when scientists first detected tumour cells in the bloodstream.
Now liquid biopsy is “the pinnacle of promise in clinical diagnostics,” says Maxine Wille, an analyst in Regnan’s Global Equity Impact Solutions team. Impact investing aims to generate both a financial return and a positive impact on society.
“It’s a non-invasive test. If the promise holds true it will not only help guide treatment decisions for insidious diseases like cancer but also might be used as a screening tool at a very early stage.”
“The promise is that you can now diagnose potentially up to 50 different types of cancers from a single blood draw — that’s why it’s very exciting and why we have decided to take an in-depth look at the sector,” she says.
The value of the liquid biopsy market ranges from $US20 billion to $US100 billion, Maxine says.
Loading posts...
Subscribe to The Point
Get regular insights on investing, market analysis and portfolio management from the experts at Perpetual Group.