Highly recommended rating for three BAEP funds

28 July 2017

Zenith has awarded a ‘highly recommended’ rating to three funds managed by Bennelong Australian Equity Partners (BAEP) – the Bennelong Australian Equities Fund, the Bennelong Concentrated Australian Equities Fund, and the Bennelong Twenty20 Australian Equities Fund.

It is the sixth year in a row that the Australian Equities fund and the Concentrated Australian Equities fund, which were both launched in 2009, have maintained their highly recommended rating, and the second year for the Twenty20 fund, which was launched in 2016.

In its Australian Equities and the Concentrated Australian Equities fund reports Zenith said it “has a high regard for the experienced investment team and we believe BAEP's rigorous investment process has the Fund well positioned to achieve its targeted objectives”.   In the Twenty20 report Zenith stated, “the Fund is an innovative product managed by a highly experienced investment team with a demonstrated track record of outperformance.”

“In Zenith's opinion, the BAEP portfolio construction process is sound, utilising both [chief investment officer Mark] East's considerable portfolio management experience and the firm's proprietary quantitative tools.

“From a general perspective, BAEP's focus on quality and earnings growth provides a layer of risk mitigation and highlights the team's aversion to risk.”

Zenith also said of BAEP’s Twenty20 fund that it “provides investors with an innovative exposure to Australian equities”.

“Zenith considers the process to be well constructed, with the prudent use of quantitative tools to enhance and focus the fundamental research. The focus on quality and valuation which is consistent throughout the process, from screening to stock selection, should ensure that the Fund is able to deliver on its objectives.”?

Commenting on BAEP’s partnership with Bennelong Funds Management (BFM), Zenith said that it “believes that the joint venture arrangement is robust with the support of BFM allowing the investment team to focus on investment duties”.

“In addition to seed and working capital commitments, BFM also provides directly or indirectly all non-investment functions such as customer service, back-office and administration, compliance and sales and marketing. Consequently, the investment team's sole responsibility is to focus on daily investment decisions and excess return generation,” Zenith said.

BAEP is a boutique fund manager focused on investing in Australian listed equities.  It was founded in 2008 by Mark East in partnership with Bennelong Funds Management.

BAEP is a genuinely active fund manager with a disciplined, research-intensive and fundamentally-driven investment approach.

Zenith Disclaimer

The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (assigned June 2017 referred to in this document is limited to “General Advice” (s766B 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 and is subject to change at any time without prior notice. 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. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners.


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