Bentham Syndicated Loan Performance Review | News

What is the Bentham Syndicated Loan fund?

Bentham Syndicated Loan Fund is actively managed and focused on generating stable investment income. The Fund aims to provide investors with exposure to high-yielding investments primarily through the US syndicated loan market, with an active allocation to investments in different industries, issuers and geographies.

Access to senior secured syndicated loans which are not generally available to direct retail investors.
Monthly income distributions.
High running yield with low interest rate risk.
Australian domiciled trust with more than 14 year’s track record.
Loans are valued to market prices daily – with daily unit pricing.
Access to a global investment universe.

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Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Latest News & Updates For Bentham Syndicated Loan

Bentham Syndicated Loan Fund Commentary September 30, 2023

The Bentham Syndicated Loan Fund had a total return (after fees) of 0.44% in the month of September, underperforming the benchmark (Credit Suisse Leveraged Loan Index hedged into AUD) by 0.33%. On a before fees basis the fund returned 0.52% for the month, underperforming the benchmark by 0.26%.

At month end, the Fund had a yield to maturity of 10.66% and running yield of 8.50%, with the credit yield spread increasing by 10 bps to 581 bps during the month. The Fund had an interest rate duration of 0.53 years and credit duration of 2.60 years.

The Fund’s three largest industry exposures are 13.9% in Electronics, 10.4% in Healthcare, Education and Childcare and 9.7% in Diversified/Conglomerate Service. The Fund’s top three company exposures are 1.2% in Polaris Newco, 1.1% in Hub International and 1.0% in Ukg. During the month, the Fund increased its exposure to GTCR W Merger Sub, Ukg and Allegro MicroSystems; with decreased exposures to Acrisure, Cwgs and Vibrantz Technologies.

READ HISTORICAL PERFORMANCE COMMENTARIES

Product Snapshot

Product Overview
Performance Review
Peer Comparison
Product Details

Product Overview

Fund Name	APIR Code ? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.	Structure ?	Asset Class ? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.	Asset Category ? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.	Peer Benchmark Name ? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.	Broad Market Index ? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.	FUM ? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.	Management Fee ? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.	Performance Fee ? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.	Spread ? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
Bentham Syndicated Loan	CSA0046AU	Managed Funds	Fixed Income	High Yield Credit	Fixed Income - High Yield Credit Index	Global High Yield Credit Hdg Index	2.96 BN	0.77%	0.00%	0.84%

Performance Review

Fund Name	Last Month ? Returns after fees in the most recent (last) month).	3 Months Return ? Returns after fees in the most recent 3 months.	1 Year Return ? Trailing 12 month returns.	3 Years Average Return ? Average Annual returns from the last 3 years.	Since Inc. Average Return ? Average (annualised) returns since inception	1 Year Std. Dev. (Annual) ? The standard deviation (or annual volatility) of the last 12 months.	3 Years Std. Dev. (Annual) ? The average standard deviation (or annual volatility) from the last 3 years.	Since Inc. Std. Dev. (Annual) ? The average standard deviation (or annual volatility) since the fund inception.	1 Year Max Drawdown ? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.	3 Year Max Drawdown ? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.	Since Inc. Max Drawdown ? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Bentham Syndicated Loan	-0.13%	0.91%	7.49%	4.51%	6.38%	1.58%	3.73%	7.13%	-0.13%	-5.18%	-29.73%

Peer Comparison

Fund Name	Peer Index Name ? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.	12 Months Excess Return ? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.	Excess Return Annualised Since Inception ? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.	12 Months Alpha ? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.	Alpha Annualised Since Inception ? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.	12 Months Beta ? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).	Beta Annualised Since Inception ? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).	12 Months Tracking Error ? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.	Tracking Error Since Inception ? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.	12 Months Correlation ? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.	Correlation Since Inception ? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Bentham Syndicated Loan	Fixed Income - High Yield Credit Index	-3.49%	-0.67%	NA%	NA%	NA%	0.44	1.9%	4.59%	0.74	0.79

Product Details

Fund Name	Verifed by SMSF Mates	Manager Address	Phone	Website	Email
Bentham Syndicated Loan	Yes	Level 2, 5 Martin Place, Sydney NSW 2000	+61 133 566	https://www.challenger.com.au/personal	info@challenger.com.au

Product Due Diligence

What is Bentham Syndicated Loan

Bentham Syndicated Loan is an Managed Funds investment product that is benchmarked against Global High Yield Credit Hdg Index and sits inside the Fixed Income - High Yield Credit Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Bentham Syndicated Loan has Assets Under Management of 2.96 BN with a management fee of 0.77%, a performance fee of 0.00% and a buy/sell spread fee of 0.84%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the Bentham Syndicated Loan has returned -0.13% in the last month. The previous three years have returned 4.51% annualised and 7.13% each year since inception, which is when the Bentham Syndicated Loan first started.

How is risk measured in this investment product?

There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Bentham Syndicated Loan first started, the Sharpe ratio is NA with an annualised volatility of 7.13%. The maximum drawdown of the investment product in the last 12 months is -0.13% and -29.73% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.

What is the relative performance of the investment product?

Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Bentham Syndicated Loan has a 12-month excess return when compared to the Fixed Income - High Yield Credit Index of -3.49% and -0.67% since inception.

Does the investment product produce Alpha over its Peers?

Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Bentham Syndicated Loan has produced Alpha over the Fixed Income - High Yield Credit Index of NA% in the last 12 months and NA% since inception.

What are similar investment products?

For a full list of investment products in the Fixed Income - High Yield Credit Index category, you can click here for the Peer Investment Report.

What level of diversification will Bentham Syndicated Loan provide?

Bentham Syndicated Loan has a correlation coefficient of 0.79 and a beta of 0.44 when compared to the Fixed Income - High Yield Credit Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.

How do I compare the investment product with its peers?

For a full quantitative report on Bentham Syndicated Loan and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Bentham Syndicated Loan with the Global High Yield Credit Hdg Index?

For a full quantitative report on Bentham Syndicated Loan compared to the Global High Yield Credit Hdg Index, you can click here.

Can I sort and compare the Bentham Syndicated Loan to do my own analysis?

To sort and compare the Bentham Syndicated Loan financial metrics, please refer to the table above.

Has the Bentham Syndicated Loan been independently verified by SMSF Mate?

This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.

How can I invest in Bentham Syndicated Loan?

If you or your self managed super fund would like to invest in the Bentham Syndicated Loan please contact Level 2, 5 Martin Place, Sydney NSW 2000 via phone +61 133 566 or via email info@challenger.com.au.

How do I get in contact with the Bentham Syndicated Loan?

If you would like to get in contact with the Bentham Syndicated Loan manager, please call +61 133 566.

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the Bentham Syndicated Loan. All data and commentary for this fund is provided free of charge for our readers general information.

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Historical Performance Commentary

Performance Commentary - August 31, 2023

The Bentham Syndicated Loan Fund had a total return (after fees) of 1.27% in the month of August, outperforming the benchmark (Credit Suisse Leveraged Loan Index hedged into AUD) by 0.18%. On a before fees basis the fund returned 1.34% for the month, outperforming the benchmark by 0.25%.

The Fund’s three largest industry exposures are 15.0% in Electronics, 10.3% in Healthcare, Education and Childcare and 9.0% in Diversified/Conglomerate Service. The Fund’s top three company exposures are 1.3% in Polaris Newco, 1.1% in Hub International and 1.1% in Hyland Software. During the month, the Fund increased its exposure to Learning Care Group, AQA Acquisition and Tecta America; with decreased exposures to Flexera Software, CCI Buyer and Packaging Coordinators.

Performance Commentary - July 31, 2023

The Bentham Syndicated Loan Fund had a total return (after fees) of 1.37% in the month of July, outperforming the benchmark (Credit Suisse Leveraged Loan Index hedged into AUD) by 0.17%. On a before fees basis the fund returned 1.39% for the month, outperforming the benchmark by 0.19%.

At month end, the Fund had a yield to maturity of 10.11% and running yield of 8.56%, with the credit yield spread decreasing by 26 bps to 564 bps during the month. The Fund had an interest rate duration of 0.54 years and credit duration of 2.87 years.

The Fund’s three largest industry exposures are 15.3% in Electronics, 10.9% in Healthcare, Education and Childcare and 8.7% in Diversified/Conglomerate Service. The Fund’s top three company exposures are 1.4% in Polaris Newco, 1.0% in Hub International and 1.0% in Hyland Software. During the month, the Fund increased its exposure to Genesee and Wyoming, Ziggo Financing Partnership and AQ Carver Buyer; with decreased exposures to Hornblower Sub, Newfold Digital and Anticimex Global.

Performance Commentary - June 30, 2023

The Bentham Syndicated Loan Fund had a total return (after fees) of 1.80% in the month of June, underperforming the benchmark (Credit Suisse Leveraged Loan Index hedged into AUD) by 0.26%. On a before fees basis the fund returned 1.84% for the month, underperforming the benchmark by 0.23%.

At month end, the Fund had a yield to maturity of 10.42% and running yield of 8.00%, with the credit yield spread decreasing by 25 bps to 590 bps during the month. The Fund had an interest rate duration of 0.51 years and credit duration of 2.84 years.

Performance Commentary - May 31, 2023

The Bentham Syndicated Loan Fund had a total return (after fees) of -0.14% in the month of May, outperforming the benchmark (Credit Suisse Leveraged Loan Index hedged into AUD) by 0.07%. On a before fees basis the fund returned -0.07% for the month, outperforming the benchmark by 0.14%.

At month end, the Fund had a yield to maturity of 10.35% and running yield of 7.99%, with the credit yield spread increasing by 10 bps to 616 bps during the month. The Fund had an interest rate duration of 0.51 years and credit duration of 2.78 years.

The Fund’s three largest industry exposures are 15.7% in Electronics, 10.7% in Healthcare, Education and Childcare and 8.4% in Diversified/Conglomerate Service. The Fund’s top three company exposures are 1.3% in Polaris Newco, 1.2% in Hub International and 1.1% in Hyland Software. During the month, the Fund increased its exposure to Ufc, Nouryon USA and VS Buyer; with decreased exposures to Diaverum, Irb and Jazz Pharmaceuticals.

Performance Commentary - April 30, 2023

The Bentham Syndicated Loan Fund had a total return (after fees) of 1.43% in the month of April, outperforming the benchmark (Credit Suisse Leveraged Loan Index hedged into AUD) by 0.56%. On a before fees basis the fund returned 1.53% for the month, outperforming the benchmark by 0.66%.

At month end, the Fund had a yield to maturity of 9.88% and running yield of 7.80%, with the credit yield spread increasing by 6 bps to 606 bps during the month. The Fund had an interest rate duration of 0.47 years and credit duration of 2.82 years.

The Fund’s three largest industry exposures are 14.7% in Electronics, 11.6% in Healthcare, Education and Childcare and 9.4% in Diversified/Conglomerate Service. The Fund’s top three company exposures are 1.4% in Polaris Newco, 1.1% in Hub International and 1.0% in Hornblower. During the month, the Fund increased its exposure to Garrett Motion, Topgolf Callaway Brands and Clarios Global; with decreased exposures to Polaris Newco, Peraton and Quest Software US.

Performance Commentary - March 31, 2023

At month end, the Fund had a yield to maturity of 9.90% and running yield of 7.61%, with the credit yield spread decreasing by 9 bps to 600 bps during the month. The Fund had an interest rate duration of 0.46 years and credit duration of 2.79 years.

The Fund’s three largest industry exposures are 14.4% in Electronics, 11.2% in Healthcare, Education and Childcare and 9.3% in Diversified/Conglomerate Service. The Fund’s top three company exposures are 1.5% in Polaris Newco, 1.0% in ABG Intermediate Holdings and 1.0% in Hornblower. During the month, the Fund increased its exposure to ABG Intermediate Holdings, AIP RD Buyer and Griffon; with decreased exposures to RealPage, Kindercare and CommerceHub.

Performance Commentary - January 31, 2023

The Bentham Syndicated Loan Fund had a total return (after fees) of 2.21% in the month of January, underperforming the benchmark (Credit Suisse Leveraged Loan Index hedged into AUD) by 0.14%. On a before fees basis the fund returned 2.28% for the month, underperforming the benchmark by 0.07%.

At month end, the Fund had a yield to maturity of 9.91% and running yield of 7.38%, with the credit yield spread decreasing by 44 bps to 571 bps during the month. The Fund had an interest rate duration of 0.44 years and credit duration of 2.93 years.

Bentham Syndicated Loan (CSA0046AU) Report & Performance