The specialist global fixed interest and credit investment manager said the Bentham Global Income Fund, which currently manages over $2.7 billion in funds under management (FUM), invests in “global credit markets across the capital structure with a focus on capital preservation and regular income”.
Bentham principal and chief investment officer Richard Quin, who has been the fund’s portfolio manager since he established it 20 years ago, said the CFS FirstChoice platform is an important addition to its investor offering.
“The thinking behind the fund was to give local investors institutional quality, high-yielding credit opportunities that was then lacking in the market,” Mr Quin said.
“For a minimum entry cost of $10,000, we provide access to offshore credit markets that offer more competitive risk yields and income diversity, an offering now available to financial advisers using the Colonial First State FirstChoice platform.
“The fund has delivered what it set out to do – providing a reliable source of retirement income to those who need it the most.”
Bentham said the actively managed fund includes “senior secured and unsecured debt, subordinated or hybrid securities, loans, structured credit and asset-based securities”.
Mr Quin noted that the fund is targeted towards investors looking for regular income above the cash rate in an asset class that has about half the volatility of equity markets.
The Bentham Global Income Fund has delivered a total return (after fees) of 6.90 per cent per annum since its inception in September 2003, outperforming the benchmark (50 per cent Bloomberg AusBond Bank Bill Index, 50 per cent Bloomberg AusBond Composite Index) by 2.19 per cent p.a.
“Investment markets have been strong lately, boosted by growing optimism that central banks are near the end of the rate hike cycle and inflation has peaked,” Mr Quin said.
“Economic data remains resilient in the face of growing pressures, while falling energy prices and signs of moderating wage growth have eased concerns over inflation. We continue to believe the long and variable lag of the fast-paced rake hikes has more the play out.”
The addition of the Bentham Global Income Fund to the FirstChoice platform comes after Quay Global Investors’ January announcement that the Quay Global Real Estate Fund (Unhedged) was added to CFS FirstChoice across its wholesale, super, and pension menus.
The Bennelong boutique is the manager of the fund, which invests in a portfolio of real estate securities listed on exchanges around the world. It is described by Quay as being relatively concentrated, with a conviction-based approach, and is currency unhedged.
