Pendal MicroCap Opportunities Fund
31 March 2024
Key Facts
| Index Used: | ASX 200 Total Return | Discretionary/Quantitative: | Combination |
| Peer Group: | Equity Long - Small/Mid Cap - Australia | FUM (millions): | AU$ 365m |
| Investment Style: | Blend | Fund Inception Date: | March 2006 |
| Geographic Mandate: | Australia/NZ | Latest Return Date: | March 2024 |
| Investor Type: | Wholesale & Retail | Status: | Open |
| Minimum Investment: | AU$ 25,000 | Investment Frequency: | Daily |
Manager Details
In 2023, Pendal became part of Perpetual Limited (ASX:PPT). Through the Perpetual and Pendal brands, Barrow Hanley, J O Hambro, Regnan, Trillium and TSW, they have a presence in the US, UK and Europe.
In 2023, Pendal became part of Perpetual Limited (ASX:PPT). Through the Perpetual and Pendal brands, Barrow Hanley, J O Hambro, Regnan, Trillium and TSW, they have a presence in the US, UK and Europe.
Strategy Description
The Fund's valuation-driven investment process is underpinned by extensive research encompassing company visits, contact with competitors and suppliers etc, financial analysis and peer group comparison (both locally and internationally). Internal analysis is particularly necessary for smaller companies as they are not well covered by external analysts.
Derivatives are used for portfolio efficiency, hedging (removal of unwanted risk) performance implications and to cover cash.
Fund Fees
| Management Fee: | 1.2% | Performance Fee: | 20% |
| Buy Spread: | 0.6% | Sell spread: | 0.6% |
| High Water Mark: | No | Hurdle: | The performance hurdle is the performance of the Fund's benchmark (S&P/ASX Small Ordinaries (TR) Index) plus the issuer fee of 1.20% p.a. |
Fund Structure
| Offshore/Onshore: | Onshore | Fund Structure: | MIS |
| Share Classes: | AU$ | Trustee/RE: | Pendal Fund Services Limited |
| Administrator: | BT TAS | Prime Broker: | N/A |
| Custodian: | HSBC | Legal: | Internal |
Ratings & Availability
Research Ratings
Platform Availability
Performance Review
The Pendal MicroCap Opportunities Fund has a track record of 18 years and 1 month and has outperformed the ASX 200 Total Return benchmark since inception in March 2006, providing investors with an annualised return of 16.41% compared with the benchmark's return of 7.11% over the same period.
The Manager has delivered these returns with 4.7% more volatility than the benchmark, contributing to a Sharpe ratio for performance over the past 12 months of 0.99 and for performance since inception of 0.75. The fund has provided positive monthly returns 90% of the time in rising markets and 40% of the time during periods of market decline, contributing to an up-capture ratio since inception of 237% and a down-capture ratio of 95%.
The Pendal MicroCap Opportunities Fund rose by +5.33% in March, an outperformance of +2.06% compared with the ASX 200 Total Return benchmark which rose by +3.27%. Over the past 12 months, the fund's best monthly return was +6.75% compared with the benchmark's best return of +7.26%, and its worst monthly return was -6.35% vs the benchmark's worst return over the same period of -3.78%.
| Year | Jan % | Feb % | Mar % | Apr % | May % | Jun % | Jul % | Aug % | Sep % | Oct % | Nov % | Dec % | YTD % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 0.06 | 5.23 | 5.33 | NA | NA | NA | NA | NA | NA | NA | NA | NA | 10.91 |
| 2023 | 4.57 | -2.95 | -1.50 | 1.65 | -2.70 | 3.56 | 1.74 | -0.67 | -2.86 | -6.35 | 5.66 | 6.75 | 6.17 |
| 2022 | -9.08 | -2.15 | 3.04 | -2.89 | -9.72 | -9.94 | 12.13 | 1.53 | -7.59 | 5.69 | 2.88 | -3.64 | -20.22 |
| 2021 | 0.39 | 3.43 | 0.07 | 9.31 | 0.31 | 3.64 | 1.15 | 9.12 | 0.42 | 0.57 | 0.94 | 3.00 | 36.86 |
| 2020 | 3.80 | -6.88 | -25.79 | 19.07 | 10.24 | 3.14 | 5.06 | 8.01 | 1.37 | 0.89 | 4.91 | 4.14 | 23.14 |
| 2019 | 4.12 | 7.21 | 2.00 | 2.37 | 0.80 | 0.16 | 6.34 | -0.61 | 3.28 | 1.50 | 0.66 | 0.64 | 32.08 |
| 2018 | 0.43 | -0.77 | -1.90 | -1.48 | 3.61 | 1.05 | 0.69 | 2.49 | 1.16 | -7.73 | -2.17 | -2.81 | -7.65 |
| 2017 | 0.82 | -0.22 | 1.24 | -1.20 | 1.49 | 2.12 | 1.71 | 2.11 | 3.13 | 3.71 | 0.94 | 5.91 | 23.85 |
| 2016 | -3.72 | -3.84 | 4.47 | 2.07 | 2.74 | 1.52 | 7.96 | 2.99 | 3.55 | -3.45 | -1.63 | 1.21 | 13.95 |
| 2015 | 1.00 | 11.23 | 2.90 | 1.48 | 2.22 | -5.71 | 2.89 | -1.69 | 0.88 | 4.50 | 4.11 | 5.16 | 32.02 |
| 2014 | 0.12 | 6.60 | 0.41 | -1.83 | 1.13 | -1.36 | 5.69 | 3.19 | -1.88 | -1.38 | 0.31 | 1.07 | 12.28 |
| 2013 | 5.17 | 3.72 | -0.06 | -1.12 | -4.77 | -4.02 | 7.77 | 6.27 | 6.02 | 3.21 | -0.57 | 0.73 | 23.66 |
| 2012 | 8.48 | 12.47 | 4.14 | -3.02 | -8.71 | -1.44 | 0.69 | 3.79 | 4.01 | 0.85 | -0.04 | 6.53 | 29.43 |
| 2011 | 0.14 | 2.81 | 0.13 | -0.55 | -3.18 | -3.72 | 2.23 | -4.00 | -8.08 | 7.73 | -2.16 | -3.29 | -12.11 |
| 2010 | -0.37 | -2.40 | 7.53 | 0.90 | -8.89 | -1.38 | 4.79 | 3.34 | 11.88 | 5.01 | 2.04 | 8.94 | 34.08 |
| 2009 | -5.03 | 0.55 | 6.17 | 11.19 | 6.27 | 2.41 | 9.79 | 17.37 | 10.42 | 6.69 | 2.39 | 3.87 | 98.10 |
| 2008 | -15.27 | -2.13 | -7.93 | 4.24 | 0.03 | -5.82 | -6.11 | 4.60 | -11.01 | -21.77 | -9.23 | 1.18 | -52.92 |
| 2007 | 5.85 | 0.69 | 3.16 | 2.72 | 9.57 | 6.20 | 1.45 | -5.52 | 2.95 | 7.40 | 0.06 | 0.72 | 40.35 |
| 2006 | NA | NA | 5.27 | 3.82 | 0.63 | 1.68 | 2.39 | 6.14 | 4.22 | 10.33 | 4.52 | 7.12 | 56.46 |
Only seven years of data shown. Click here to view all data.
Annual Returns
Over the past 12 months, the fund has risen by +17.79% compared with the benchmark which has returned +14.45%, for a difference of +3.34%. Since inception in March 2006, the fund has returned +16.41% per annum, a difference of +9.3% relative to the benchmark which has returned +7.11% on an annualised basis over the same period.
Cumulative Returns
On a cumulative basis (assuming reinvestment of distributions), $100 invested since inception would have become $1560. The same amount invested in the benchmark over the same period would have become $346.
Annual Returns %
Volatility and Risk
Annual Standard Deviation
The fund's returns over the past 12 months have been achieved with a volatility of 13.52% vs the index's 10.87%. The annualised volatility of the fund's returns since inception in March 2006 is 18.88% vs the index's 14.18%. Over all other periods, the fund's returns have been more volatile than the benchmark.
Sharpe Ratio
The fund's Sharpe ratio is 0.99 for performance over the past 12 months vs the ASX 200 Total Return Index's Sharpe of 0.93, and since inception the fund's Sharpe ratio is 0.75 vs the index's Sharpe of 0.35 for performance over the same period.
Annual Standard Deviation
Sharpe Ratio
Performance in Positive Markets
Since inception in March 2006 in the months where the market was positive, the fund has provided positive returns 90% of the time, contributing to an up-capture ratio for returns since inception of 236.96%. Over all other periods, the fund's up-capture ratio has ranged from a high of 155.03% over the most recent 48 months to a low of 117.45% over the latest 24 months. An up-capture ratio greater than 100% indicates that, on average, the fund has outperformed in the market's positive months.
Performance in Negative Markets
Since inception in March 2006 in the months where the market was negative, the fund has provided positive returns 40% of the time, contributing to a down-capture ratio for returns since inception of 94.74%. Over all other periods, the fund's down-capture ratio has ranged from a high of 138.65% over the most recent 24 months to a low of 107.57% over the latest 60 months.
Average Return in +ve Market %
Average Return in -ve Market %
Sortino Ratio
The fund's Sortino ratio (which excludes volatility in positive months) has ranged from a high of 1.74 for performance over the most recent 48 months to a low of -0.14 over the latest 24 months, and is 0.97 for performance since inception. By contrast, the ASX 200 Total Return Index's Sortino for performance since March 2006 is 0.38.
Drawdown
Over the past 12 months, the fund's largest drawdown was -9.64% vs the index's -7.19%, and since inception in March 2006 the fund's largest drawdown was -55.28% vs the index's maximum drawdown over the same period of -47.19%.
Sortino Ratio
Drawdown%
Quintile Ranking vs. Average Equity Long - Small/Mid Cap - Australia as of March 2024
The performance of the Pendal MicroCap Opportunities Fund ranked it in the first or second quintile for Total Return over 3, 5 & 7 years, and in the first quintile for Sharpe and second quintile for Sortino over 5 & 7 years, while over 3 years the fund ranked in the second quintile for Sharpe and Sortino.
Over the past 12 months, the fund has risen by +17.79% compared with the peer group which has returned an average of +14.59%, for a difference of +3.2%.
The fund's returns over the past 12 months have been achieved with a volatility of 13.52% vs the peer group's average volatility of 11.08%. The annualised volatility of the fund's returns since inception in March 2006 is 18.88% vs the peer group's 14.53%. Over all other periods, the fund's returns have been more volatile than the peer group.