BDO Private Wealth are pleased to have Amy Xie Patrick of Pendal Group join us for the fourth instalment of Meet the Manager.
BDO Private Wealth is pleased to have Amy's Xie Patrick from the Pendal Monthly Income Plus fund join us in this instalment of Meet the Manager.
Amy joined Pendal Group in February 2017 and is a portfolio manager leading Pendal’s suite of income strategies. Before joining Pendal, Amy was a fund manager with F&C Asset Management in the UK, where she managed a range of credit and income portfolios. She has experience as a market maker in emerging market fixed-income securities with Citigroup global markets in London.
The Pendal Monthly Income Plus fund has been operating since 2009, established as a response to challenges faced by investors in the aftermath of the Global Financial Crisis (GFC).
Investment philosophy and approach
The investment philosophy of the fund is centred around generating defensive income and defensive returns. This branches off a broader fixed-income philosophy, that investors should be relying on a fixed-income approach to generate a stable level of income for their portfolios, as well as to provide some diversification from other holdings that they may have.
Pendal's approach to investing always starts with what's most important to clients. The objective of many of their clients is to avoid the surprise of poor returns in challenging market conditions. To meet these kinds of objectives, the investment approach must be active. This means Pendal needs to design portfolios with the right levers in order to weather the entire market cycle.
Where are interest rates heading?
The markets have priced quite a steep path of hikes for the RBA, with the cash rate expected to peak at about 4 per cent. Australia has a very heavy debt load, particularly among households, and a lot of mortgages are tied to floating rates. There is a fair bit of anxiety for individuals as to just how high the RBA can hike. “Personally, I think that 4% being priced into the market is not beyond stretches for the imagination, but at the same time, such a high cash rate for the economy is likely to generate stresses elsewhere,” Amy said.
“What's important to remember is that as cash rates go up, such an environment does not guarantee losses for government bonds further out the curve.”
To learn more about Pendal Monthly Income Plus Fund, watch the full interview now.
Should you wish to discuss how your portfolio is positioned in the context of your investment objectives and market risks, please speak to your local BDO Private Wealth adviser.
Pendal Group is licenced to provide general advice. The information contained is not advice, is general in nature and does not take into account your objectives, financial situation or needs. Before making a decision to invest in this fund please consider the relevant Product Disclosure Statement and Target Market Determination to determine if the product is right for you.
This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact the BDO member firms in Australia to discuss these matters in the context of your particular circumstances. BDO Australia Ltd and each BDO member firm in Australia, their partners and/or directors, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.
BDO Private Wealth Advisers Pty Ltd ABN 62 805 149 677 AFS Licence No. 238280 is a member of a national association of separate member firms which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Private Wealth Advisers Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of separate member firms. Liability limited by a scheme approved under Professional Standards Legislation.
BDO is the brand name for the BDO network and for each of the BDO member firms.
© 2022 BDO Private Wealth Advisers Pty Ltd. All rights reserved.