You asked, we answered: Q&A with PineBridge Investments

Hi, mooers!

After the conversation, we received many valuable questions, and PineBridge Investments is now back in the spotlight to answer them. Let's take a look at their responses!

Our investment philosophy and process are time-tested and proven across market cycles, and importantly across both de-risking and re-risking markets. In addition, our GIPS-compliant Multi-Asset Composite (which the Global Dynamic Asset Allocation UCITS Fund is part of) dates back to 2005, and its track record is thus indicative of the long-tenured and time-tested investment process that is developed by the Global Multi-Asset Team. Since its inception (Jan 2005 – Sep 2023), the Multi-Asset Composite has returned 5.51% (net).

The Multi-Asset team’s Global Dynamic Asset Allocation (GDAA) Strategy is primarily long-only and total-return oriented, and managed from a fundamentally driven and intermediate-term (9–18 month) perspective. It is outcome-focused and aims to generate equity-like returns with approximately one-third less risk than equities over full cycles. Specifically, we seek to achieve total returns of (CPI+5%) over rolling five-year periods while dynamically managing risk to a 60/40 risk budget (60% MSCI ACWI (Net) Index/40% Bloomberg Barclays Global Treasury Total Return Index (USD Unhedged)). As a total return-oriented strategy, GDAA has successfully achieved its target goal of achieving CPI+5% over a rolling 5-year period, outperforming Global Equities and 60/40 – the hit rate stands at 54% for GDAA, compared to 52% for Global Equities and just 23% for the 60/40. Additionally, it has done averaging a 60/40 risk budget over the market cycle.

The management fee and service fee are 1.30% and 0.50% respectively. You may refer below for the fund’s performance.

The current annualized dividend yield for the Global Dynamic Asset Allocation UCITS Fund ADC share class is 8.7% as of Sep 2023.

5-Year on a rolling basis, or from a full market cycle perspective.

At PineBridge, we think Multi-Asset is about navigating across different market cycles and regimes. Chart 2 in the post is to illustrate our ability to navigate across the different drawdown periods that the market faced. The total return of -19% mentioned in Chart 2 of the fund pertains to a specific period during the COVID-19 pandemic. However, the return detailed in the factsheet corresponds to the entire calendar year of 2022.

The return appearing lower than the benchmark in the factsheet is a result of our current defensive stance. It's important to understand that our fund's performance, particularly during crises, has historically benefited from our ability to adopt a defensive position ahead of fundamental, long-lasting market downturns driven by underlying economic factors. However, this defensive posture can also lead to temporary underperformance when compared to benchmarks in certain market conditions.  

We are greatly inspired and encouraged by your active interactions! Keep an eye out for more exciting content in the days ahead, and feel free to contact us with any questions or comments.