The Bennelong ex-20 Australian Equities Fund (the Fund) has been awarded a ‘Recommended’ rating by Lonsec, an upgrade from the Fund’s previous ‘Investment Grade’ rating.
The Fund is managed by Bennelong Australian Equity Partners (BAEP) and provides investors with access to a unique Australian equities portfolio that invests in companies outside the top 20 ASX listed stocks.
Experienced investment team
Lonsec Investment Analyst, Thembi Matabiswana, said the depth and breadth of experience across BAEP’s investment team is above average compared to industry peers, despite BAEP’s smaller team size. The team consists of six members including five with sector and stock research responsibilities and a dedicated quantitative research resource.
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 Lonsec’s increased conviction in Paul and Mark’s experience.
“The investment team has remained stable over the years, a clear demonstration of the cohesive culture in the organisation,” said Matamiswana.
Solid research and portfolio construction process
The Lonsec report considers BAEP’s stock research process to be solid, using a fundamental bottom-up active process supported by a multi-factor quantitative research platform. The multi-factor model is used to monitor and rank stocks on a series of alpha sensitive factors. “The tool allows for greater transparency and consistency across the research process,” the report noted.
Lonsec also stated that the Fund’s one-year return sits well above the Lonsec assessed peer average, and the Fund has clearly outperformed the small cap and mid cap sectors over the same period.
Paul Cuddy, BAEP’s CEO, said the team were delighted with the outcome of Lonsec’s review. “We are obviously very pleased with the rating upgrade – a great endorsement of the team’s efforts and processes,” Cuddy commented.