10 May 2010
Zenith Investment Partners (Zenith) has awarded a ‘recommended' rating to Bennelong Funds Management's (Bennelongs) ex 20 Australian Equities Fund.
Bennelong's newest fund provides investors with access to a unique Australian share portfolio that invests in companies outside the top 20 ASX listed stocks.
Bennelong's Australian equities funds are managed by Bennelong Australian Equity Partners (BAEP), established in July 2008 as a joint venture between Bennelong and Australian equities experts Paul Cuddy and Mark East. The ex 20 fund is the latest addition to BAEP's suite of funds following the successful launch of the Bennelong Australian Equities Fund and Concentrated Australian Equities Fund in October 2008.
Strong investment team
Zenith Investment Analyst, Nicholas Busst, said BAEP's investment team is very capable, with one of its biggest strengths being the experience of Paul Cuddy and Mark East (Co-heads of Australian Equities and Chief Executive Officer and Chief Investment Officer respectively), and the expertise of Quantitative Research Director, Keith Hwang.
The extensive experience of the two co-heads and the fact that they have worked together previously in identical roles mean "they are well adapted to their respective roles which is very apparent in the portfolio construction process. In general, Zenith regards both individuals as highly competent investors and is encouraged by their previous collaborative experience," said Nicholas.
Impressive quantitative tools and robust process
Zenith's review identified the team's quantitative analysis as a definite competitive advantage, forming a crucial component of the stock selection/portfolio construction process.
"Having viewed the quantitative tools, Zenith was highly impressed and believes they rival those of any existing fund manager," said Nicholas. "The ability of the manager to have these tools from start-up is a strong indication of the level of support afforded by Bennelong."
Zenith believes the team's bottom-up active process, supported by quantitative techniques and proprietary tools, has created a logical and theoretically proven method of generating outperformance, which should enable BAEP to achieve its investment objective.