News

BAEP fund finishes 2017 with top-ranking performance

5 January 2018

The Bennelong Concentrated Australian Equities Fund is ranked the number one Australian equities fund over three months; one, three and five years; and financial year to date, according to the latest Morningstar Australian Sector Survey (30 November 2017).

Over one year, it has returned 26.4 percent after fees, compared to the benchmark’s return of 14.7 percent.

The fund was also named winner of Financial Standard’s “high performance” category in its inaugural “Investment Leadership Awards” announced in December.

To achieve this out-performance, BAEP manages money in a flexible way, unconstrained in what or how much can be invested in a particular opportunity, and with the ability to concentrate on high conviction ideas.

Julian Beaumont, investment director at BAEP, says the goal as a fund manager is to maximise investment returns over time by selecting stocks on the basis of their upside potential and downside risk, not their weighting or position on the ASX.

“As high-conviction managers, we aren’t compelled to invest just because it’s a big stock or sector. It’s irrelevant to us how big, popular or well-covered the company; in fact, it’s often the case that the best opportunities arise where the opposite is true.

“Many of the well-owned large caps seem unexciting to us at present, so for example we don’t hold Commonwealth Bank, BHP, Telstra, Woolworths or Wesfarmers in our concentrated fund.

“It’s basically unconstrained stock picking, with very tight controls and high conviction around stock and portfolios risks.

“We believe this approach will continue to stand us in good stead in 2018, as volatility is likely to increase and global growth may start to ease,” he said.