October, 2020
Portfolio Returns
The Bentham Asset Backed Securities Fund had a total return (after fees) of 0.59% in the month of September, outperforming the benchmark (Bloomberg AusBond Bank Bill Index) by 0.58%. On a before fees basis the fund returned 0.56% for the month, outperforming the benchmark by 0.56%.
Portfolio Exposures
The Fund's sector allocations are 34.8% in US Broadly Syndicated Collateralised Loan Obligations (CLO), 23.4% in European CLO, 18.1% in UK Residential Mortgage Backed Securities (RMBS), 9.4% in Middle Market CLO, 5.3% in Cash & Derivatives, 3.3% in Aircraft ABS, 2.4% in US Commercial Real Estate (CRE), 1.4% in Australian RMBS, 1.1% in Credit Card ABS, 0.6% in Auto ABS, 0.2% in European RMBS and 0.1% in Personal Loan ABS.
Contributors
The top performing contributors to performance included Middle Market CLO and US Broadly Syndicated CLO; whilst the bottom performing contributors included European RMBS and Personal Loan ABS.
September, 2020
Portfolio Returns
The Bentham Asset Backed Securities Fund had a total return (after fees) of 0.59% in the month of September, outperforming the benchmark (Bloomberg AusBond Bank Bill Index) by 0.58%. On a before fees basis the fund returned 0.56% for the month, outperforming the benchmark by 0.56%.
Portfolio Exposures
The Fund's sector allocations are 34.8% in US Broadly Syndicated Collateralised Loan Obligations (CLO), 23.4% in European CLO, 18.1% in UK Residential Mortgage Backed Securities (RMBS), 9.4% in Middle Market CLO, 5.3% in Cash & Derivatives, 3.3% in Aircraft ABS, 2.4% in US Commercial Real Estate (CRE), 1.4% in Australian RMBS, 1.1% in Credit Card ABS, 0.6% in Auto ABS, 0.2% in European RMBS and 0.1% in Personal Loan ABS. Contributors The top performing contributors to performance included Middle Market CLO and US Broadly Syndicated CLO; whilst the bottom performing contributors included European RMBS and Personal Loan ABS.
Outlook
The Fund remains focused on the higher rated tranches of ABS issuance, offering investors a high credit quality, higher yielding, secured alternatives to investment grade corporate and government bonds, with low interest rate risk. We place a high value on the structural benefits (“terms”) typically included in global ABS structures to help preserve the principal of investors in the higher-rated tranches, such as cashflow priority, security, seniority, and reduction in leverage over time.
ticker: HOW2852AU
commentary_block: Array
factsheet_url:
https://www.benthamam.com/funds-and-performance/fund-reports/
asset_class: Fixed Income
asset_category: Diversified Credit
peer_benchmark: Fixed Income - Diversified Credit Index
broad_market_index: Global Aggregate Hdg Index
structure: Managed Fund