We continue to see value in the BFMG 10% 06/11/2023 senior secured loan note versus the high-yield opportunity set. The notes are senior secured with no bank debt ranking in priority. Investors also gain a coupon of 10% paid quarterly for the next two years. BFMG’s equity stake in the funds forms the security for noteholders.
As per the Bennelong Funds Management Group (BFMG) Note Trust Deed (dated 23 October 2020), all covenants comply as of the latest quarterly report for September 2021.
- Debt Service Cover Ratio: Must be greater than 2x
- Net Senior Leverage Ratio: Must be less than 55% (beginning 31 Dec 20)
- Minimum total group FUM for the BFMG group must not fall below AUD9bn
BFMG are a wholly-owned subsidiary of Bangarra Group, a private family office. BFMG partners with boutique asset managers across the globe and invests in Australian, UK, Asian, and global equities — as well as listed global infrastructure and real estate and global emerging markets. Outside Australia, the Group operates as BennBridge, with a presence in the UK and US.
Globally, BFMG have AUD19.4bn in assets under management and advice (as at September 2021). As per the table below, assets under management comprise around AUD13.3bn, having grown from around AUD12bn in 2020.
Chart 1. Bennelong Funds Management Historic Timeline
Source: Bennelong Investor Website
Fund Performance (1-year Alpha)
BFMG’s funds offer Australian and global equity strategies complemented by growth in emerging markets, infrastructure, real estate, and alternative strategies. BFMG was named Fund Manager of the Year in 2020 by Money Management.
Table 1. Fund Performance
|Key Funds||Current FUM (AUDm)||Portfolio Managers||1-year Alpha||Since Inception|
|4D Emerging Markets Infrastructure Fund||11||Sarah Shaw||4.07%||-10.21%|
|4D Global Infrastructure Fund||286||Sarah Shaw||10.51%||2.38%|
|Bennelong Australian Equities Fund||1,096||Mark East||12.88%||5.23%|
|Bennelong Concentrated Australian Equities Fund||1,957||Mark East||9.18%||7.22%|
|Bennelong Emerging Companies Fund||103||Mark East||41.37%||24.52%|
|Bennelong ex-20 Australian Equities Fund||4,422||Mark East||17.11%||6.03%|
|Bennelong Twenty20 Australian Equities Fund||25||Mark East||11.49%||3.40%|
|Bennelong Kardinia Absolute Return Fund||36||Kristiaan Rehder & Stuart Larke||13.33%||8.63%|
|Bennelong Long Short Equity Fund||375||Sam Shepherd|
|Bennelong Market Neutral Fund||217||Sam Shepherd|
|Quay Global Real Estate Fund||458||Justin Blaess & Chris Bedingfield||32.89%||12.98%|
|Skerryvore Global Emerging Markets All-Cap Equity Fund||21||Glen Finegan (Lead), Michael Cahoon, Nicholas Cowley, Stephen Deane, Ronan Kelleher, Ian Tabberer||New||Inception Date: 02 August 2021|
|Touchstone Asset Management||4,314||Jack Chemello, Suellen Morgan, Mary Feros||34.58%||-0.90%|
Source: Bennelong Investor Website as at September 2021