Bentham Wholesale High Yield aims to outperform its benchmark Merrill Lynch High Yield Cash Pay Constrained Index (hedged to AUD) over the suggested minimum investment timeframe. The Fund is actively managed and aims to provide higher returns than traditional fixed income investments through investing in a diversified portfolio of US corporate debt securities which are rated below investment grade (high yield bonds).
The Bentham High Yield Fund had a total return (after fees) of -0.90% in the month of September, outperforming the benchmark ICE BofAML US Cash Pay High Yield Constrained Index3 (hedged into AUD) by 0.40%. On a before fees basis the fund returned -0.87% for the month, outperforming the benchmark by 0.43%.
For the month, 1 of the 23 industries had positive returns. The top performing industries in September were Wireless Communications, Cable/Wireless Video and Energy with returns (sector performance in USD terms) of 0.00%, -0.36% and – 0.71% respectively. The worst performing industries were Broadcasting, Retail and Housing with returns of -2.49%, -1.85% and -1.80% respectively. The credit yield spread for the Index increased by 19 bps during the month to 400 bps.
The Fund’s three largest industry exposures are 10.3% in Diversified/Conglomerate Service, 8.4% in Electronics and 6.7% in Finance. The Fund’s top three company exposures are 1.1% in INTL FCStone, 1.1% in Austin and 1.1% in HealthEquity. During the month, the Fund increased its exposure to National Financial Partners, US Foods and Grand Total; with decreased exposures to CCO Holdings LLC, Thor Industries and Macquarie Airfinance.
What is Bentham Wholesale High Yield Bentham Wholesale High Yield 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 Wholesale High Yield has Assets Under Management of 167.29 M with a management fee of 0.6%, a performance fee of 0.00% and a buy/sell spread fee of 0.3%.
How has the investment product performed recently? The recent investment performance of the investment product shows that the Bentham Wholesale High Yield has returned 0.57% in the last month. The previous three years have returned 2.57% annualised and 8.22% each year since inception, which is when the Bentham Wholesale High Yield 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 Wholesale High Yield first started, the Sharpe ratio is NA with an annualised volatility of 8.22%. The maximum drawdown of the investment product in the last 12 months is -1.44% and -29.76% 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 Wholesale High Yield has a 12-month excess return when compared to the Fixed Income - High Yield Credit Index of 1.4% and 0.27% 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 Wholesale High Yield 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 Wholesale High Yield provide? Bentham Wholesale High Yield has a correlation coefficient of 0.81 and a beta of 1.82 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 Wholesale High Yield and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Bentham Wholesale High Yield with the Global High Yield Credit Hdg Index? For a full quantitative report on Bentham Wholesale High Yield compared to the Global High Yield Credit Hdg Index, you can click here.
Can I sort and compare the Bentham Wholesale High Yield to do my own analysis? To sort and compare the Bentham Wholesale High Yield financial metrics, please refer to the table above.
Has the Bentham Wholesale High Yield 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 Wholesale High Yield? If you or your self managed super fund would like to invest in the Bentham Wholesale High Yield 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 Wholesale High Yield? If you would like to get in contact with the Bentham Wholesale High Yield manager, please call +61 133 566.
Comments from SMSF Mates SMSF Mate does not receive commissions or kickbacks from the Bentham Wholesale High Yield. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - August 31, 2023 The Bentham High Yield Fund had a total return (after fees) of 0.20% in the month of August, remaining flat against the benchmark ICE BofAML US Cash Pay High Yield Constrained Index3 (hedged into AUD). On a before fees basis the fund returned 0.25% for the month, outperforming the benchmark by 0.05%.
The Fund’s three largest industry exposures are 10.1% in Diversified/Conglomerate Service, 9.9% in Electronics and 6.6% in Oil and Gas. The Fund’s top three company exposures are 1.1% in INTL FCStone, 1.1% in Austin and 1.1% in HealthEquity. During the month, the Fund increased its exposure to Shift4 Payments LLC Shift4 Payments Finance Sub, WESCO Distribution and Altice France; with decreased exposures to Science Applications International, New Fortress Energy and Pike.
Performance Commentary - July 31, 2023 The Bentham High Yield Fund had a total return (after fees) of 1.35% in the month of July, outperforming the benchmark ICE BofAML US Cash Pay High Yield Constrained Index3 (hedged into AUD) by 0.03%. On a before fees basis the fund returned 1.41% for the month, outperforming the benchmark by 0.09%.
The Fund’s three largest industry exposures are 10.4% in Diversified/Conglomerate Service, 9.7% in Electronics and 7.0% in Oil and Gas. The Fund’s top three company exposures are 1.1% in Nfp, 1.1% in INTL FCStone and 1.1% in Austin. During the month, the Fund increased its exposure to Standard Industries Inc NJ, Six Flags Entertainment and Brookfield WEC; with decreased exposures to OI European, Arcosa and Lithia Motors.
Performance Commentary - June 30, 2023 The Bentham High Yield Fund had a total return (after fees) of 1.27% in the month of June, underperforming the benchmark ICE BofAML US Cash Pay High Yield Constrained Index3 (hedged into AUD) by 0.19%. On a before fees basis the fund returned 1.27% for the month, underperforming the benchmark by 0.19%.
For the month, all industries had positive returns. The top performing industries in June were Broadcasting, Telecommunications and Housing with returns (sector performance in USD terms) of 4.26%, 2.71% and 2.31% respectively. The worst performing industries were Food And Drug, Chemicals and Utility with returns of 0.12%, 0.30% and 0.41% respectively.
The credit yield spread for the Index decreased by 63 bps during the month to 404 bps.
The Fund’s three largest industry exposures are 10.0% in Diversified/Conglomerate Service, 9.6% in Electronics and 7.0% in Oil and Gas. The Fund’s top three company exposures are 1.1% in Nfp, 1.1% in INTL FCStone and 1.1% in Austin. During the month, the Fund increased its exposure to Messer Industries USA, Telenet Finance Luxembourg Notes and Diamond; with decreased exposures to MasTec, Iqvia and Clarios Global LP Clarios US Finance.
Performance Commentary - May 31, 2023 The Bentham High Yield Fund had a total return (after fees) of -0.28% in the month of May, outperforming the benchmark ICE BofAML US Cash Pay High Yield Constrained Index3 (hedged into AUD) by 0.84%. On a before fees basis the fund returned -0.22% for the month, outperforming the benchmark by 0.89%.
The Fund’s three largest industry exposures are 10.7% in Diversified/Conglomerate Service, 10.1% in Electronics and 6.6% in Mining, Steel, Iron and Non-Precious Metals. The Fund’s top three company exposures are 1.2% in Nfp, 1.2% in Austin and 1.2% in HealthEquity. During the month, the Fund increased its exposure to Taseko Mines, Synaptics and First Quantum Minerals; with decreased exposures to Six Flags Entertainment, Grifols Escrow Issuer and Home Point Capital.
Performance Commentary - April 30, 2023 The Bentham High Yield Fund had a total return (after fees) of 1.18% in the month of April, outperforming the benchmark ICE BofAML US Cash Pay High Yield Constrained Index3 (hedged into AUD) by 0.31%. On a before fees basis the fund returned 1.20% for the month, outperforming the benchmark by 0.33%.
For the month, 21 of the 23 industries had positive returns. The top performing industries in April were Diversified Media, Food And Drug and Financial with returns (sector performance in USD terms) of 3.53%, 2.70% and 1.94% respectively. The worst performing industries were Broadcasting, Cable/Wireless Video and Aerospace with returns of -0.37%, -0.18% and 0.00% respectively.
The credit yield spread for the Index decreased by 4 bps during the month to 449 bps.
The Fund’s three largest industry exposures are 11.5% in Diversified/Conglomerate Service, 9.8% in Electronics and 7.2% in Buildings and Real Estate. The Fund’s top three company exposures are 1.4% in Nfp, 1.2% in Speedway Motorsports and 1.1% in Foundation Building Materials. During the month, the Fund increased its exposure to Six Flags Entertainment, Shift4 Payments LLC and Vertiv; with decreased exposures to Gartner, Bausch Health Cos and Yum Brands.
Performance Commentary - March 31, 2023 The Bentham High Yield Fund had a total return (after fees) of 1.60% in the month of March, outperforming the benchmark ICE BofAML US Cash Pay High Yield Constrained Index3 (hedged into AUD) by 0.60%. On a before fees basis the fund returned 1.66% for the month, outperforming the benchmark by 0.66%.
The Fund’s three largest industry exposures are 11.7% in Diversified/Conglomerate Service, 9.9% in Electronics and 7.6% in Buildings and Real Estate. The Fund’s top three company exposures are 1.4% in Nfp, 1.2% in Speedway Motorsports and 1.1% in Foundation Building Materials. During the month, the Fund increased its exposure to Vertiv, Encore Capital and Boyne USA; with decreased exposures to Telenet Finance Luxembourg Notes, Ciena and Radiology Partners.
Performance Commentary - February 28, 2023 The Bentham High Yield Fund had a total return (after fees) of -0.95% in the month of February, outperforming the benchmark ICE BofAML US Cash Pay High Yield Constrained Index3 (hedged into AUD) by 0.51%. On a before fees basis the fund returned -0.90% for the month, outperforming the benchmark by 0.56%.
For the month, 1 of the 23 industries had positive returns. The top performing industries in February were Diversified Media, Transportation and Food And Drug with returns (sector performance in USD terms) of 0.22%, -0.04% and -0.23% respectively. The worst performing industries were Telecommunications, Broadcasting and Cable/Wireless Video with returns of -2.86%, -2.47% and -2.25% respectively.
The credit yield spread for the Index decreased by 8 bps during the month to 418 bps.
The Fund’s three largest industry exposures are 11.8% in Diversified/Conglomerate Service, 10.8% in Electronics and 8.0% in Healthcare, Education and Childcare. The Fund’s top three company exposures are 1.4% in Nfp, 1.2% in Speedway Motorsports and 1.1% in Finastra. During the month, the Fund increased its exposure to INEOS Finance, TriNet and Murphy Oil USA; with decreased exposures to ABG Intermediate Holdings, Central Parent Inc CDK Global and Blackstone Mortgage Trust.
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