Bentham Global Income Fund Nzd Crowned New Zealand Morningstar Fund Manager Of The Year – Fixed Income Fund 2024

April 5, 2024: Bentham Asset Management, a leading global fixed interest and credit manager, is pleased to announce its recent achievement at the 2024 Morningstar Fund Manager of the Year Awards, where it was honoured with the Best Fixed Income category award for its Global Income Fund NZD.

Fund managers with products available for sale in New Zealand qualify for inclusion in the Morningstar Fund Manager of the Year Awards. Morningstar determines winners based on a combination of research by its manager research analysts; risk-adjusted returns over medium- to long-term periods; and performance in the 2023 calendar year.

This win recognises Bentham's exceptional performance, comprehensive investment strategy, and dedication to delivering outstanding fixed income returns to its clients. Since inception (September 2013), the Bentham Global Income Fund NZD has returned 5.22% pa (after fees, to 29 Feb 2024). In the 2023 calendar year, the Fund returned 5.30% (after fees).

Bentham Asset Management says active investment management works.

Bentham Principal and CIO, Richard Quin, noted “We are honoured to receive the Best Fixed Income Award from Morningstar this year especially considering the challenging fixed interest environment of the last three years. We value Morningstar’s process that is both quantitative and qualitative.”

“This has been the toughest time for fixed interest since 1994. With huge volatility in interest rates and credit it has demanded a lot from both our team and our investors,” he said.

Central Banks have been on the offensive since March 2022 to defeat inflation from supply side shock and pent up COVID demand, commented Quin.

“However, Bentham’s very active approach to risk management saw the Bentham Global Income Fund NZD outperform over 3-year period – the Fund was positioned to take advantage of rising rates and returned 4.68% p.a. (after fees) for the 3 years to 31 Dec 2023,” he noted.

With its strong 20-year track record, the Bentham Global Income Fund (‘Underlying Fund’ the strategy underlying the Bentham Global Income Fund NZD) invests across global fixed interest and credit markets in securities across the capital structure, including corporate and government bonds, senior secured and unsecured debt, subordinated or hybrid securities, loans, structured credit and asset-based securities. The Underlying Fund invests in over 600 global issuers of credit securities which protects investors from concentration risk.

Looking forward, Quin said it is a much better and more normal environment for investors who can now lock in higher interest rates.

"Overall, all-in yields in credit and fixed income markets look attractive right now, although we anticipate potential volatility in credit spreads in the nearer term.

“Our Funds are positioned accordingly (as at the end of Feb 2024), with more defensive credit positioning, long interest rate duration, and dry powder to take advantage of further opportunities through the year. We are pleased that the Fund is able to offer a reasonably high yield to maturity of 6.26%, while still being conservatively positioned.”

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