BENTLEY CAPITAL LIMITED Friday, 21 October 2016
CBG Fund September 2016 Quarterly ReportThe September 2016 Quarterly Report from CBG Asset Management Limited (CBG) on the performance of its CBG Australian Equities Fund (Wholesale) (CBG Fund) is attached.
As at 30 September 2016, Bentley had ~$3.99 million (27.7% of its net assets) invested in the CBG Fund (30 June 2016: ~$4.85 million (31.2%)).
About the CBG Fund1
The CBG Fund is a wholesale fund not open to retail investors. The objective of the fund is to outperform the S&P/ASX 200 Accumulation Index over the medium term. The Investment Manager is "style neutral" and invests in growth stocks, value stocks, stocks with maintainable dividend yields and special situations.
CBG Fund details as at 30 September 2016:
The equity weighting was 97.3% (30 June 2016: 93.65%);
85.2% of the equity portfolio is invested in companies contained within the S&P/ASX 200 Index (30 June 2016: 85.7%) with the balance of 14.8% invested in companies outside of the S&P/ASX 200 Index (30 June 2016: 14.3%); and
The equity portfolio contained 47 holdings (30 June 2016: 45 holdings).
CBG Australian Equities Fund - Performance
Returns To: | 1mth | 3mths | 6mths | 1yr | 2yrs | 3yrs | Since Inception |
30 September 2016 | (%) | (%) | (%) | (%) | (% p.a.) | (% p.a.) | (% p.a.) |
CBG Fund | -1.4 % | 3.7% | 3.5% | 6.8% | 5.5% | 6.5% | 9.4% |
ASX / S&P 200 Accumulation Index | 0.5% | 5.1% | 9.3% | 13.2% | 6.0% | 6.0% | 8.0% |
FOR FURTHER INFORMATION: Farooq Khan | Victor Ho |
Chairman | Company Secretary |
T | (08) 9214 9757 | T | (08) 9214 9757 |
E | info@bel.com.au | E | cosec@bel.com.au |
1 Based on information provided by CBG Asset Management Limited.
www.bel.com.au
BENTLEY CAPITAL LIMITED A.B.N. 87 008 108 218
Level 2, 23 Ventnor Avenue, West Perth, Western Australia 6005
ASX: BEL T | (08) 9214 9757 F | (08) 9214 9701 E | info@bel.com.au
The CBG Australian Equities Fund (Wholesale)
September quarter 2016
21 October 2016
The Directors of Bentley Capital Limited Level 2, 23 Ventnor Avenue, West Perth Western Australia 6005
In the September quarter of 2016, the CBG Australian Equities Fund (Wholesale) returned 3.7%, which compared to the S&P/ASX 200 Accumulation Index return of 5.1%. For the twelve months to 30 September 2016, the fund returned 6.8%, compared to the benchmark return of 13.2%.
Over the three year period to 30 September 2016, the fund returned 6.5% per annum, compared to the benchmark return of 6.0% per annum, while over five years the fund returned 12.0% per annum, compared to 11.2% for the benchmark.
Over the twelve month period, the market saw a partial reversal of some of the key trends over the past four years, with fund managers underperforming and resources outperforming. This meant that, while the fund return of 6.8% was reasonably positive, it lagged the benchmark return. The fund remains focused on identifying strong businesses which we expect to deliver attractive returns over the medium to long term.
International equity markets generated strong positive returns in the September quarter, with the MSCI World Accumulation Index returning 4.9% (measured in US$, while the A$ appreciated by 2.8%). This was assisted by positive economic developments, including strong US payrolls data and expectations of continued monetary policy support from global central banks.
Across Australian industry sectors in the quarter, resources (+13.4%), consumer staples (+12.5%) and information technology (+9.2%) led the gains, while telecommunications (-6.6%), utilities (-2.4%) and property (-1.9%) underperformed. Returns across international equity markets in local currencies were: S&P 500 (+3.3%); Shanghai Composite (+2.6%); Nikkei 225 (+5.6%); German DAX (+8.6%); FTSE 100
(+6.1%); NZX 50 (+6.7%).
CBG Asset Management Limited ABN 12 098 327 809 AFS Licence No. 246790
Level 3, 8-10 Loftus Street, Sydney NSW 2000
Tel: 61 2 8599 1160 Web: www.cbgam.com.au Email: enquiries@cbgam.com.au
1
The CBG Australian Equities Fund (Wholesale)
Net performance history (%)Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Year total | |
2016 | -6.0 | -4.7 | 3.5 | 0.1 | 4.1 | -4.2 | 6.8 | -1.6 | -1.4 | -4.0% | |||
2015 | 3.7 | 6.6 | -0.3 | -2.4 | 0.2 | -6.8 | 5.4 | -5.7 | -0.3 | 5.0 | 3.4 | 2.5 | 10.4% |
2014 | -2.3 | 5.8 | 1.8 | 0.8 | 0.2 | -1.5 | 3.6 | 1.0 | -5.1 | 3.9 | -1.2 | 2.2 | 9.3% |
2013 | 4.9 | 5.6 | -1.3 | 5.6 | -3.5 | -2.6 | 5.6 | 1.9 | 3.7 | 4.2 | -1.1 | 1.3 | 26.6% |
2012 | 6.2 | 3.5 | 1.6 | 1.2 | -8.6 | 0.5 | 3.5 | 1.6 | 1.0 | 4.3 | 0.8 | 3.8 | 20.1% |
2011 | 0.6 | 3.1 | 1.3 | -1.2 | -2.5 | -3.7 | -0.9 | -3.7 | -11.2 | 7.8 | -3.6 | -3.6 | -17.3% |
2010 | -5.7 | 1.6 | 7.6 | -0.4 | -11.4 | -3.2 | 7.5 | -1.3 | 7.4 | 1.9 | -1.0 | 5.2 | 6.4% |
2009 | -3.1 | -0.7 | 4.9 | 2.8 | 2.2 | 2.9 | 7.3 | 6.7 | 7.0 | 0.4 | 1.7 | 4.2 | 42.3% |
2008 | -12.3 | 0.2 | -5.4 | 4.1 | 0.8 | -7.8 | -5.7 | 1.7 | -16.3 | -17.7 | -5.0 | 2.7 | -48.2% |
2007 | 3.6 | 0.2 | 3.9 | 4.5 | 2.7 | 2.3 | -0.2 | -3.2 | 8.7 | 5.0 | -3.7 | -3.6 | 21.4% |
2006 | 1.2 | 3.2 | 3.9 | 4.4 | -2.9 | 0.0 | -0.3 | 2.9 | 4.8 | 6.1 | 3.3 | 4.6 | 35.5% |
2005 | 0.8 | 0.7 | -0.9 | -3.8 | 2.5 | 1.9 | 5.5 | 2.1 | 4.7 | -3.4 | 2.2 | 2.2 | 15.1% |
2004 | 0.9 | 2.3 | 2.7 | -2.8 | 0.6 | 2.6 | 2.1 | 2.3 | 3.9 | 6.3 | 5.4 | 1.5 | 31.2% |
2003 | -2.2 | -6.9 | 0.4 | 4.6 | -1.8 | 4.0 | 7.5 | 11.2 | 6.7 | 6.9 | -1.4 | 5.4 | 38.3% |
2002 | 0.7 | 1.2 | -2.2 | -4.0 | 2.6 | -4.4 | 1.1 | -0.6 | -0.9 | -6.5% |
Fund (%) | Index (%) | Outperformance (%) | |
3 months | 3.7 | 5.1 | -1.4 |
1 year | 6.8 | 13.2 | -6.4 |
3 years annualised | 6.5 | 6.0 | +0.5 |
5 years annualised | 12.0 | 11.2 | +0.8 |
Since inception annualised | 9.4 | 8.0 | +1.4 |
Since inception total return | 266.2 | 204.6 | +61.6 |
Inception date: 9 April 2002
The benchmark is the S&P/ASX 200 Accumulation Index.
Fund commentaryStocks which contributed positively to performance in the September quarter included BigAir Group (BGL, 0.4% weight), which returned 55.6% after the 2016 financial year result beat expectations and the company subsequently announced a proposed takeover via scheme of arrangement from ASX listed Superloop (SLC). The proposal is recommended by the BGL directors with the market value of the offer representing a 27-34% premium to BGL's closing price prior to the announcement.
CBG Asset Management Limited ABN 12 098 327 809 AFS Licence No. 246790
Level 3, 8-10 Loftus Street, Sydney NSW 2000
Tel: 61 2 8599 1160 Web: www.cbgam.com.au Email: enquiries@cbgam.com.au
2
The CBG Australian Equities Fund (Wholesale)
Bellamy's (BAL, 1.7% weight) also contributed positively, returning 28.2% after reporting a very strong full year result, with second half net profit being 18% ahead of consensus. BAL achieved revenue growth of 95% for the year to $245m, driven by demand for the company's infant formula in China and also assisted by a part year contribution from an average 23% price rise on its products. The business is benefiting from increased sales directly to Chinese resellers, retaining margin that would otherwise be captured by supermarkets. BAL will also see a significant boost to its supply of raw materials in the current financial year from a new agreement with Fonterra.
Stocks which detracted from performance in the September quarter included APA Group (APA, 2.8% weight), which returned -7.8% as an increase in bond yields in September impacted valuations in the utilities sector. In terms of operating performance, the company reported its 2016 financial year result in August, with full year dividends per share increasing by 9% on the prior. Given strong free cash flow and prudent gearing levels, CBG views the company as well placed to continue to grow dividends over the medium term by mid-single digits percentages per annum.
Eureka Group (EGH, 2.3% weight) returned -6.3% in the quarter, despite no negative news flow. EGH is a provider of affordable rental accommodation for retirees and the stock has been a strong performer, having returned 37% in the last 12 months. During the quarter, EGH announced the completion of the acquisition of 36 units located at Couran Cove Island Resort in Queensland. With this village, EGH also has plans to acquire an additional 65-90 units, with the village set to become a material profit generator for the group.
Top 15 Holdings as at 30 September 2016
ASX Code | Stock Name | Fund weight | FY17 yield | |
1 | CBA | COMMONWEALTH BANK OF AUSTRALIA | 10.8% | 5.9% |
2 | WBC | WESTPAC BANKING CORPORATION | 8.1% | 6.3% |
3 | TCL | TRANSURBAN GROUP | 5.7% | 4.5% |
4 | ANZ | ANZ BANKING GROUP LIMITED | 5.5% | 5.9% |
5 | MQA | MACQUARIE ATLAS ROADS GROUP | 4.5% | 4.0% |
6 | HGG | HENDERSON GROUP | 4.0% | 4.6% |
7 | NAB | NATIONAL AUSTRALIA BANK LIMITED | 3.9% | 6.4% |
8 | MFG | MAGELLAN FINANCIAL GROUP | 3.8% | 3.7% |
9 | AIA | AUCKLAND INTERNATIONAL AIRPORT LTD | 3.7% | 2.9% |
10 | LLC | LENDLEASE GROUP | 3.4% | 4.6% |
11 | DUE | DUET GROUP | 3.2% | 7.4% |
12 | SYD | SYDNEY AIRPORT | 3.0% | 4.9% |
13 | APA | APA GROUP | 2.8% | 5.1% |
14 | ACX | ACONEX LIMITED | 2.4% | - |
15 | EGH | EUREKA GROUP HOLDINGS LIMITED | 2.3% | - |
Total | 67.1% | 4.9% | ||
CBG Asset Management Limited ABN 12 098 327 809 AFS Licence No. 246790
Level 3, 8-10 Loftus Street, Sydney NSW 2000
Tel: 61 2 8599 1160 Web: www.cbgam.com.au Email: enquiries@cbgam.com.au
3
Bentley Capital Limited published this content on 21 October 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 21 October 2016 11:13:02 UTC.
Original documenthttp://www.bel.com.au/sites/default/files/20161021 BEL CBG Fund September 2016 Quarterly Report.pdf
Public permalinkhttp://www.publicnow.com/view/5282D7E046EF1D4149087F59C327FC163EF205D5
