News

Lonsec awards BAEP funds 'Recommended' and 'Highly Recommended'

11 November 2013

The Bennelong ex-20 Australian Equities Fund (the ex-20 Fund) has been awarded a ‘Highly Recommended' rating by Lonsec, an upgrade from last year’s ‘Recommended’ rating. The ex-20 Fund provides investors with access to a unique Australian equities portfolio that invests in companies outside the top 20 ASX listed stocks.

In addition, the Bennelong Australian Equities Fund (the core Fund) has been awarded Lonsec’s ‘Recommended’ rating, reaffirming the core Fund’s previously awarded rating.

The Funds are managed by Bennelong Australian Equity Partners (BAEP), established in July 2008 in partnership with Bennelong Funds Management. BAEP currently manages $4.4 million.

Strong investment team

The BAEP team consists of seven members with an average of 19 years’ industry experience. The Lonsec report stated the investment team unit has remained relatively stable - “a clear demonstration of the cohesive culture in the organisation,” said Lonsec Analyst Lin Ngin.

Key principals Paul Cuddy and Mark East (Chief Executive Officer and Chief Investment Officer respectively) previously co-headed the Australian equities operation at ING Investment Management.

“Underpinning the upgrade [of the ex-20 Fund] is an increase in Lonsec’s conviction in the investment team, led by Mark East and Paul Cuddy”, said Ngin.

Solid research and portfolio construction process

BAEP’s underlying philosophy revolves around the belief that stock prices are driven by earnings, and that high quality companies deliver superior earnings/returns.

Lonsec noted the ex-20 Fund outperformed its benchmark (S&P/ASX 300 Accumulation Index ex-top 20) by an impressive 9.88% p.a. over the three years to June 2013.

In reference to both Funds’, Ngin said: “The research and portfolio construction processes are the critical factors influencing performance.”

The Lonsec Ratings (assigned as follows: APIR BFL0001AU – October 2013; APIR BFL0004AU – October 2013) presented in this document are published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445. The Ratings are a “class service” (as defined in the Financial Advisers Act 2008 (NZ)) or limited to “General Advice” and based solely on consideration of the investment merits of the financial products. In New Zealand it must only be provided to “wholesale clients” (as defined in the Financial Advisers Act 2008 (NZ)). Past performance information is for illustrative purposes only and is not indicative of future performance. They are not a recommendation to purchase, sell or hold Bennelong Funds Management products, and you should seek independent financial advice before investing in these products. The Ratings are subject to change without notice and Lonsec assumes no obligation to update the relevant documents following publication. Lonsec receives a fee from the Fund Manager for researching the products using comprehensive and objective criteria.

For further information regarding Lonsec’s Ratings methodology, please refer to our website at: https://www.lonsec.com.au/aspx/Public/Documents/Ratings%20Definitions.pdf