News

Cost-effective access to active management

7 July 2016

The Bennelong Twenty20 Australian Equities Fund is now available on a number of platforms, having been listed on Macquarie Wrap, FirstWrap and Federation. While only in operation since December 2015, the Fund has received a Highly Recommended rating by Zenith Investment Partners and a Recommended rating by Lonsec Research.

The Bennelong Twenty20 Australian Equities Fund (Twenty20 Fund) offers investors a mix of active and passive management within the one fund structure, providing a cost-effective means of accessing the full spectrum of the market.

The Fund is managed by Bennelong Australian Equity Partners (BAEP) and according to Zenith “the Fund aims to provide investors with a cost-effective exposure to a portfolio of listed Australian equities. The Fund combines a passive, market cap weighted exposure to the S&P/ASX 20 Index with an actively managed portfolio of companies outside this index.

“Zenith believes the Fund is an innovative product managed by a highly experienced investment team with a demonstrated track record of outperformance”.

The ex-20 component of the fund, which mirrors the award winning Bennelong ex-20 Australian Equities Fund, invests in a diversification of up and coming stocks that provide greater potential for outperformance. Since inception, the ex-20 Fund has consistently outperformed the benchmark, achieving a return of 14.59% p.a. (net of fees and expenses as at 31 May 2016).

This blending of an active ex-20 exposure and an indexed position in the top 20 is an efficient way to gain all-cap exposure to Australian equities. Investors receive the most 'bang for their buck' from the Twenty20 Fund with active management where it reliably adds value,  and with a low cost management fee of just 0.39%*. Zenith views “the overall fee structure to be attractive”.

The Twenty20 Fund represents a practical solution for retail clients who are increasingly focused on costs, but who do not want to lose the potential for market-beating returns.

*Plus a performance fee of 15% on the ex-20 component, only activated when the Fund outperforms its benchmark.

 

The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (assigned June 2016) 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

The Lonsec Rating (assigned May 2016) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445. The Rating is limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). 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 Australian Equity Partners 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: http://www.beyond.lonsec.com.au/intelligence/lonsec-ratings