21 November 2013The Bennelong Kardinia Absolute Return Fund (the Fund) has been awarded a ‘Recommended' rating by Lonsec, reaffirming last year’s rating. The Lonsec report describes the Fund as "an attractive offering for investors seeking an absolute-return strategy with a strong focus on capital preservation".
The Fund is managed by Kardinia Capital, headed up by investment professionals Mark Burgess and Kristiaan Rehder. Prior to joining Bennelong's suite of boutiques, Mark and Kristiaan worked together at Herschel, where Mark managed the Absolute Return Fund since inception.
Lonsec considers the Burgess and Rehder pairing to exhibit a strong and complimentary array of skills, including top-down macroeconomic analysis and bottom-up stock picking.
Robust risk management framework
Implicit with the Fund’s aim of achieving double digit annual rates of return, is a strong focus on capital protection. Lonsec Analyst Sam Morris noted a conservative and disciplined mindset with respect to this philosophy.
The report also states a robust risk management framework is applied at both the portfolio and individual stock level.
As at 31 October 2013, the Fund has returned 14.24% p.a. since inception (in May 2006). According to the report, the volatility of returns (as measured by Standard Deviation) has been well below the broader equity market. “This is a pleasing outcome for investors”, said Sam.
Mark Burgess has attributed the Fund’s success to solid investment and risk management processes that have been fine-tuned over many years.
Kardinia Capital was established in partnership with Bennelong Funds Management in August 2011.
The Lonsec Rating (assigned November 2013) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445. The Rating is a “class service” (as defined in the Financial Advisers Act 2008 (NZ)) or is limited to “General Advice” and based solely on consideration of the investment merits of the financial product(s). In New Zealand it must only be provided to “wholesale clients” (as defined in the Financial Advisers Act 2008 (NZ)). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold Bennelong Funds Management product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria.
For further information regarding Lonsec’s Ratings methodology, please refer to our website at: https://www.lonsec.com.au/aspx/Public/Documents/Ratings%20Definitions.pdf