BAEP’s fund wins Lonsec Innovation Award

Wheelhouse Global Equity Income Fund launched to retail market
October 10, 2017
Wheelhouse: “100-year storms” have serious impact on retiree balances
October 19, 2017

MEDIA RELEASE

The Bennelong Twenty20 Australian Equities Fund has been named the winner of the Lonsec Innovation Award for 2017. 

The Fund, managed by Bennelong Australian Equity Partners (BAEP), combines passive investment in top 20 stocks, similar to an index fund, and active investment in ex-20 stocks, using the same investment process employed in the award-winning Bennelong ex-20 Australian Equities Fund.

When it comes to investing in Australian equities, there’s a lot of debate about which approach is better—active or passive, explains portfolio manager Julian Beaumont. 

“Actively-managed funds have the potential to perform better than the market, but they are typically more expensive. Passively-managed funds are low cost, but they stick to the index with no chance of outperformance.

“What doesn’t get talked about much, however, is how these strategies can work together so investors get the best of both worlds.

“Recognising that it’s more difficult to outperform the top 20 mega-cap stocks on the ASX, the portfolio invests in the ASX 20 Index using a low-cost passive approach.

“There are a lot more interesting ideas outside the top 20. Ex-20 stocks tend not to be as well known, researched or picked over. They can offer more exciting investment prospects, although the group comes with more risk. It’s here that an active strategy can add a lot of value in discerning the good from the bad.”

Craig Bingham, CEO of BAEP’s partner Bennelong Funds Management, says the Lonsec award recognises the innovative approach taken by the Twenty20 Fund portfolio management team.

“The award is a great endorsement of Bennelong Australian Equity Partners’ strategy for the Twenty20 Fund. The team is uniquely positioned to offer the product, with proven success in actively managing ex-20 stocks and the capability to properly undertake the passive side. This is recognition of the team’s strong ex-20 pedigree and a desire to think innovatively about how they can add value for their clients.”

-oOo-

 Bennelong Australian Equity Partners (BAEP) was founded in 2008 in partnership with Bennelong Funds Management. It focuses on investing in Australian listed equities, and manages four funds on behalf of retail and institutional clients as well as on a pro-bono basis for charitable organisations.

Bennelong Funds Management was established in 2001 and nurtures a growing suite of boutique asset management teams that currently manage over $8 billion.

It provides a holistic range of services to its boutiques, allowing them to focus on what they do best – manage money.  As equity partners in their individual businesses, each asset manager’s goals are aligned with those of their investors.

Bennelong is a wholly owned subsidiary of the Bangarra Group (formerly the Bennelong Group), a privately owned company encompassing a number of independent businesses. 

Lonsec does not issue, sell, guarantee or underwrite this financial product. Go to www.lonsecresearch.com.au for details of its ratings criteria.