New to mFund

Back to articles

Bentham Asset Backed Securities Fund now available on mFund (ASX: BAM06)

New to mFund
mFund
3 December 2018

Access the Bentham Asset Backed Securities Fund – Class I via mFund code: BAM06

The Bentham Asset Backed Securities Fund (Fund) is focused on generating income while preserving capital by investing in highly rated global asset backed securities (“ABS”). The Fund is actively managed, with individual investments made across different global ABS subsectors. The Fund is managed by Bentham Asset Management, which has over 10 years of investment experience in the sector.

Investment objective

The performance objective for the Fund is to exceed the Bloomberg AusBond Bank Bill Index by 1.5% per annum after fees over rolling three year periods while maintaining a minimum average credit quality of A-.

Investment strategy

The Fund’s strategic positioning is based on a top down assessment of macroeconomic and investment market conditions. Active allocations to different global asset backed security sectors are made according to quarterly forecasts of prospective risk adjusted returns. The Fund uses bottom-up analysis to select individual investments and employs a conservative approach to credit selection, emphasising preservation of principal.

Primarily investing in the US and European ABS markets, the Fund seeks to add value through security selection and subsector allocation, while maintaining a highly rated, diversified portfolio. The Fund will be as close to fully currency hedged into AUD as is practicable.

Features of the fund:

  • Provides investors access to the global asset backed securities market
  • Globally diversified sources of income
  • High credit quality portfolio: minimum 90% allocation to Investment Grade issues
  • Floating rate asset class targeting a total return above cash
  • Low volatility / risk level. Focus on preservation of capital
  • Targeted income distribution frequency: monthly
  • Daily unit pricing

 

About Bentham

Bentham is a specialist global fixed interest and credit investment manager. Bentham actively manages a number of income focused funds with varying capital risk profiles. The portfolios are designed to generate income while diversifying risk in global credit markets. Bentham’s goal is to deliver higher income than can generally be achieved in traditional fixed interest markets with lower volatility than equity markets.

How to Invest - visit our website or go to the Fund Information page.

More information

In 2017, Bentham published a White Paper exploring asset backed securities and their role in markets. Read the Lessons Learned and the Road Ahead for Asset-Backed Securities.


The information contained in this presentation is current as at the date of this presentation unless otherwise specified and is provided by Bentham Asset Management ABN 92 140 833 674 AFSL 356199 (‘Bentham’). The information is intended solely for holders of an Australian Financial Services Licence or other wholesale clients as defined in the Corporations Act 2001 (Cth). It must not be passed on to a retail client. It should be regarded as general information only rather than advice. A reference to any security is not a recommendation to buy. It has been prepared without taking account of any person’s objectives, financial situation or needs. Because of that, each person should, before acting on such information, consider its appropriateness, having regard to their objectives, financial situation and needs.

Offers of interests in the Bentham Global Income Fund ARSN 105 898 271, Bentham Professional Global Income Fund ARSN 109 991 095, Bentham Syndicated Loan Fund ARSN 110 077 159, Bentham Professional Syndicated Loan Fund ARSN 111 433 071 and Bentham High Yield Fund ARSN 088 907 224 are contained in the relevant Product Disclosure Statement (PDS) issued by Fidante Partners Services Limited (FPSL) ABN 44 119 605 373 AFSL 320 505 which is available at www.fidante.com.au and must be considered before making a decision about the product. FPSL is the responsible entity of these funds.

Offers of interests in the Bentham Global Income Fund NZD ARSN 165 696 417, Bentham Syndicated Loan Fund NZD ARSN 165 696 300 and the Bentham Asset Backed Securities Fund ARSN 622 644 866 are contained in the relevant PDS issued by Fidante Partners Limited (FPL) ABN 94 002 835 592 and AFSL No. 234 668 which is available at www.fidante.com.au and must be considered before making a decision about the product. Offers of interests in the Bentham Global Opportunities Fund ARSN 623 308 841 are contained in the relevant Information Memorandum issued by FPL which is available on request and must be considered before making a decision about the product. The Bentham Global Opportunities Fund is intended solely for wholesale investors as so defined in the Corporations Act 2001. FPL is the responsible entity of these funds.

Past performance is not necessarily indicative of future performance. Returns may be volatile and may vary from year to year.