Pendal cuts fees on equities fund

Pendal has dropped the fees on a $334 million global emerging markets equities fund by 22bps.

The Pendal Global Emerging Markets Opportunity Fund lowered its issuer fees from 1.40% per year to 1.18% per year, effective last Thursday.

The fund is managed by Pendal's subsidiary J O Hambro Capital Management and invests in EM stocks.

Its biggest allocations were to China, India and South Korea, while the biggest stock positions were in Samsung Electronics (9.2% of the portfolio), Tencent (5.5%) and Naspers (3.9%) at December end.

The fund started in November 2012 and had $334 million in total assets at end of last year.

"Pendal regularly reviews all our products to ensure we offer competitive pricing appropriate to the current marketplace," a spokesperson said.

The fund's annualised performance since inception and after fees is 10.16%, above the 9.75% per annum return of its benchmark MSCI Emerging Markets (Standard) Index (Net Dividends) in AUD.

However, at December end, it was underperforming the benchmark for one, two, three and five years. The second half of 2019 was particularly bad, with the fund returning 1.94% over the six months when the benchmark did 6.91%.

The funds under management hovered around $330 million for most of the last year.

This is Pendal's second fee cut in the recent months.

In December, it dropped the fees on the Pendal Sustainable funds (balanced a conservative), as it looked to issue a PDS and raise money form retail investors.

In the past, the two sustainable funds were available through an information memorandum to sophisticated investors only.

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