Bentham Syndicated Loan Fund (NZD)
31 March 2024
Key Facts
| Index Used: | Bloomberg AusBond Composite 0+ Yr Index | Discretionary/Quantitative: | Discretionary |
| Peer Group: | Fixed Income - Debt | FUM (millions): | NZD 50.39m |
| Investment Style: | N/A | Fund Inception Date: | September 2016 |
| Geographic Mandate: | USA | Latest Return Date: | March 2024 |
| Investor Type: | Wholesale & Retail | Status: | Open |
| Minimum Investment: | NZD 50,000 | Investment Frequency: | Daily |
Manager Details
Strategy Description
The Fund is actively managed and aims to provide exposure to high yielding investments primarily through the US syndicated loan market (non-investment grade securities) with limited exposure to US corporate debt securities that are rated below investment grade (high yield bonds) and collateralised debt obligations. The Fund seeks to add value through loan selection and industry rotation, while maintain a highly diversified portfolio.
The Fund uses a bottom-up analysis to select individual investments and employs a conservative approach to credit selection emphasising preservation of principal. Investments are made in different industries, issuers and geographies. Loans are managed on the belief that returns above benchmark are driven by a strong credit culture and a systematic investment process. Security selection is based on relative value within the capital structure of comparable companies and industries. The preservation of principal and protection against downside risk plays an important role in the investment process. The Fund has a high level of industry and issuer diversification.
The Fund typically invests in the senior syndicated loan market but may have limited exposure to other credit investments including, but not limited to senior loans, second lien loans, high yield bonds, credit default swaps and collateralised debt obligations.
Fund Fees
| Management Fee: | 0.84% | Performance Fee: | 0% |
| Buy Spread: | 0.35% | Sell spread: | 0.35% |
| High Water Mark: | Hurdle: | N/A |
Fund Structure
| Offshore/Onshore: | Offshore | Fund Structure: | Unit Trust |
| Share Classes: | NZD | Trustee/RE: | Fidante Partners |
| Administrator: | N/A | Prime Broker: | N/A |
| Custodian: | Citigroup | Legal: | N/A |
Ratings & Availability
Research Ratings
Platform Availability
Performance Review
The Bentham Syndicated Loan Fund (NZD) has a track record of 10 years and 6 months and has outperformed the Bloomberg AusBond Composite 0+ Yr benchmark since inception in October 2013, providing investors with an annualised return of 5.15% compared with the benchmark's return of 2.64% over the same period.
The Manager has delivered these returns with 1.22% more volatility than the benchmark, contributing to a Sharpe ratio which has fallen below 1 three times over the past five years and which currently sits at 0.64 since inception. The fund has provided positive monthly returns 83% of the time in rising markets and 76% of the time during periods of market decline, contributing to an up-capture ratio since inception of 50% and a down-capture ratio of -26%.
The Bentham Syndicated Loan Fund (NZD) rose by +0.79% in March, a difference of -0.33% compared with the Bloomberg AusBond Composite 0+ Yr benchmark which rose by +1.12%. Over the past 12 months, the fund's best monthly return was +1.93% compared with the benchmark's best return of +3.01%, and its worst monthly return was 0% vs the benchmark's worst return over the same period of -1.95%.
| Year | Jan % | Feb % | Mar % | Apr % | May % | Jun % | Jul % | Aug % | Sep % | Oct % | Nov % | Dec % | YTD % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 1.25 | 0.77 | 0.79 | NA | NA | NA | NA | NA | NA | NA | NA | NA | 2.84 |
| 2023 | 2.23 | 0.57 | -0.43 | 1.43 | 0.00 | 1.93 | 1.37 | 1.29 | 0.53 | 0.00 | 1.24 | 1.15 | 11.87 |
| 2022 | 0.23 | -0.33 | 0.29 | -0.06 | -2.15 | -2.57 | 1.72 | 1.53 | -2.68 | 0.87 | 0.52 | 0.42 | -2.31 |
| 2021 | 1.24 | 0.37 | 0.34 | 0.63 | 0.70 | 0.21 | 0.01 | 0.51 | 0.34 | -0.08 | 0.21 | 0.79 | 5.37 |
| 2020 | 0.42 | -1.25 | -13.67 | 3.15 | 3.47 | 2.01 | 1.51 | 2.03 | 0.45 | 0.64 | 2.35 | 1.34 | 1.23 |
| 2019 | 1.58 | 1.16 | -0.08 | 1.44 | -0.43 | 0.12 | 0.42 | -0.17 | 0.34 | -0.26 | 0.59 | 1.24 | 6.10 |
| 2018 | 0.86 | 0.02 | 0.25 | 0.57 | 0.07 | 0.23 | 0.47 | 0.40 | 0.78 | -0.14 | -0.84 | -2.30 | 0.34 |
| 2017 | 1.03 | 0.61 | 0.21 | 0.97 | 0.74 | 0.10 | 0.41 | 0.17 | 1.04 | 0.89 | 0.17 | 0.28 | 6.80 |
| 2016 | -1.40 | -0.71 | 3.03 | 2.05 | 1.14 | 0.18 | 1.47 | 1.19 | 0.75 | 1.12 | 0.74 | 1.39 | 11.45 |
| 2015 | 0.62 | 1.65 | 0.71 | 1.41 | 0.74 | -0.02 | 0.55 | -0.75 | -0.74 | 0.30 | -0.41 | -0.88 | 3.17 |
| 2014 | 1.13 | 0.46 | 0.54 | 0.48 | 0.78 | 0.76 | 0.27 | 0.40 | -0.06 | 0.48 | 0.47 | -0.76 | 5.05 |
| 2013 | NA | NA | NA | NA | NA | NA | NA | NA | NA | 1.33 | 0.58 | 1.02 | 2.95 |
Only seven years of data shown. Click here to view all data.
Annual Returns
Over the past 12 months, the fund has risen by +12.38% compared with the benchmark which has returned +1.47%, for a difference of +10.91%. Since inception in October 2013, the fund has returned +5.15% per annum, a difference of +2.51% relative to the benchmark which has returned +2.64% on an annualised basis over the same period.
Cumulative Returns
On a cumulative basis (assuming reinvestment of distributions), $100 invested since inception would have become $169. The same amount invested in the benchmark over the same period would have become $131.
Annual Returns %
Volatility and Risk
Annual Standard Deviation
The fund's returns over the past 12 months have been achieved with a volatility of 1.93% vs the index's 5.4%. The annualised volatility of the fund's returns since inception in October 2013 is 5.5% vs the index's 4.28%. Over all other periods, the fund's volatility relative to the benchmark has been varied.
Sharpe Ratio
The fund's Sharpe ratio has ranged from a high of 3.99 for performance over the most recent 12 months to a low of 0.42 over the latest 60 months, and is 0.64 for performance since inception. By contrast, the Bloomberg AusBond Composite 0+ Yr Index's Sharpe for performance since October 2013 is 0.24.
Annual Standard Deviation
Sharpe Ratio
Performance in Positive Markets
Since inception in October 2013 in the months where the market was positive, the fund has provided positive returns 83% of the time, contributing to an up-capture ratio for returns since inception of 49.94%. Over all other periods, the fund's up-capture ratio has ranged from a high of 101.43% over the most recent 12 months to a low of 61.71% over the latest 36 months. An up-capture ratio greater than 100% indicates that, on average, the fund has outperformed in the market's positive months.
Performance in Negative Markets
Since inception in October 2013 in the months where the market was negative, the fund has provided positive returns 76% of the time, contributing to a down-capture ratio for returns since inception of -25.71%. Over all other periods, the fund's down-capture ratio has ranged from a high of 13.94% over the most recent 60 months to a low of -48.98% over the latest 12 months. A down-capture ratio less than 100% indicates that, on average, the fund has outperformed in the market's negative months, and a negative down-capture ratio indicates that, on average, the fund delivered positive returns in the months the market fell.
Average Return in +ve Market %
Average Return in -ve Market %
Sortino Ratio
The fund has had too few negative returns returns over the past 12 months for a Sortino ratio to be calculated. Over all other periods its Sortino ratio (which excludes volatility in positive months) has ranged from a high of 0 to a low of 0. By contrast, the Bloomberg AusBond Composite 0+ Yr Index's Sortino for performance since October 2013 is 0.3.
Drawdown
Over the past 12 months, the fund hasn't had any negative monthly returns and therefore hasn't experienced a drawdown. Over the same period, the index's largest drawdown was -5.2%. Since inception in October 2013, the fund's largest drawdown was -14.75% vs the index's maximum drawdown over the same period of -13.2%.
Sortino Ratio
Drawdown%
Quintile Ranking vs. Average Fixed Income - Debt as of March 2024
The performance of the Bentham Syndicated Loan Fund (NZD) ranked it in the second quintile for Sortino over 3, 5 & 7 years, while over 1 year the fund ranked in the first or second quintile for all KPIs except Volatility and Sharpe.
Over the past 12 months, the fund has risen by +12.38% compared with the peer group which has returned an average of +8.25%, for a difference of +4.13%.
The fund's returns over the past 12 months have been achieved with a volatility of 1.93% vs the peer group's average volatility of 0.48%. The annualised volatility of the fund's returns since inception in October 2013 is 5.5% vs the peer group's 2.24%. Over all other periods, the fund's returns have been more volatile than the peer group.