7 March 2014
Research house Zenith Investment Partners has again awarded a ‘Recommended’ rating to the Bennelong Avoca Emerging Leaders Fund (the Fund), referencing the experienced portfolio managers and disciplined investment approach.
Zenith’s Investment Analyst, Huw Flanagan, regards Avoca’s intrinsic value approach as one of the key strengths of the Fund. The portfolio construction process and decision making structure ensure the Fund holds a concentrated portfolio of the team’s highest conviction stocks, predominantly selected from the S&P/ASX Small Ordinaries Accumulation Index. Flanagan writes “The investment process is thorough and robust.”
The Fund is managed by Avoca Investment Management (Avoca), established by John Campbell and Jeremy Bendeich in partnership with Bennelong Funds Management (Bennelong), in May 2011. Zenith notes that Campbell and Bendeich have a well-established working history, having managed the UBS Small Companies Fund from 2008 to 2011, during which time they outperformed both the benchmark and the median manager. “Avoca’s investment philosophy and process remained largely unchanged from the process used at UBS,” said Flanagan.
John Campbell, Portfolio Manager of the Fund and Managing Director of Avoca, said “We strive to continuously hold a portfolio of high conviction small cap stocks, and Zenith’s recognition is a confirmation of the research and processes we have in place.”
The report also states that the provision by Bennelong of all non-investment functions is integral in allowing Avoca’s investment team to solely focus on stock analysis and the management of the portfolio.
Zenith disclaimer: The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (assigned March 2014) referred to in this document is limited to “General Advice” (as defined by the Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Zenith usually charges the product issuer, fund manager or a related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessment’s and at http://www.zenithpartners.com.au/RegulatoryGuidelines.