Press Release
Sydney, 23 November 2022 – Foresight Analystics Rates the Bendigo Income Generation Fund (BIGF) as VERY STRONG
Foresight Analytics has recently completed a rating assessment of the Bendigo Income Generation Fund (BIGF). The Fund has been assigned a VERY STRONG rating and a Foresight Product Complexity Indicator of RELATIVELY SIMPLE. The Bendigo Income Generation Fund (BIGF or “the Fund”) is managed by Sandhurst Trustees Ltd. (“Sandhurst”), a fully owned subsidiary of Bendigo and Adelaide Bank. Sandhurst Trustees Ltd. is additionally the Responsible Entity, Custodian, and Administrator of the Fund.
An investment rating of VERY STRONG has been assigned to Bendigo Income Generation Fund, indicating a very strong conviction that it can deliver a risk-adjusted return in line with its investment objectives. The Investment Manager is supported by Bendigo and Adelaide Bank and employs a well-defined and rigorous process. Designation as a RELATIVELY SIMPLE PRODUCT indicates that the Investment Manager will seek to outperform their chosen mainstream market sector. The strategies used are well documented and do not include the use of leverage or derivatives for trading purposes. While this fund is expected to move closely in line with mainstream markets, there may be periods where it outperforms or underperforms the benchmark index.
The Fund seeks to provide an enhanced cash investment that targets a return above the benchmark; the Bloomberg AusBond Bank Bill Index. The Fund invests primarily in Australian dollar denominated investment grade Credit Securities (debt securities issued by banks and companies) generally. The portfolio is actively managed to minimise capital loss and provide consistent income over time.
The Fund provides quarterly income and is available either directly and or through an investment platform. Since its inception, the Fund has fulfilled its objective, providing returns of 2.11% over the benchmark, while maintaining a high level of capital stability and liquidity.
Foresight Analytics and Ratings’ opinion is that the Investment Managers’ investment process is robust and benefits from its experienced management team. The investment approach is conservative, technical, and highly analytical.
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About Foresight Analytics’ Investment Due Diligence Rating (IDD Rating)
The objective of Foresight Analytics’ Investment Due Diligence Rating (IDD Rating) is to identify the best funds and opportunities for future investment. We assess the fund’s historical risk-adjusted performance – compared to its peers – to form a holistic view of the manager’s ability to deliver future returns. The IDD rating indicates the quality of the investment option within the context of a diversified portfolio and full investment cycle.
Foresight’s analysts use a 5-point scale to determine how the fund will perform against a range of risk factors.
- SUPERIOR indicates the highest level of confidence that the fund can deliver a risk-adjusted return in line with its investment objectives and that it is highly suitable for inclusion on APLs.
- VERY STRONG indicates a very strong conviction that the fund can deliver a risk-adjusted return in line with its investment objectives and that it is suitable for inclusion on most APLs.
- STRONG indicates a strong likelihood that the fund can deliver a risk-adjusted return in line with its investment objectives and that it is suitable for inclusion on most APLs.
- COMPETENT indicates the fund may deliver a risk-adjusted return in line with its relevant benchmark and that it may be suitable for APLs.
- WEAK indicates the fund is unlikely to deliver a risk-adjusted return in line with its investment objective and that it is not suitable for most APLs.
A ‘Hold’ designation is applied to a fund’s rating if a material change impacts the fund manager, and we need to review the rating.
A ‘Sell’ designation indicates the Foresight Investment Ratings Committee considers risk factors to be elevated enough that maintaining an investment in the fund as part of their diversified portfolio is questionable.
Foresight Complexity Indicator
A Foresight Complexity Indicator (FCI) highlights the complexity of an investment product based on a range of indicators. These typically include its terms and conditions, performance-based fees, liquidity structure, financial leverage, use of derivatives, rare and niche asset class/opportunity set, currency exposure and the level of transparency offered for investors. Foresight believes these factors can disproportionately affect risk-adjusted return outcomes for investors even if a manager is very skilled. Investors can use FCI as a guide to portfolio position sizing within a diversified portfolio context.
Media Contact – Foresight Analytics
Adam Taxakis, Analyst
Suite 208, 33 Lexington Drive, Bella Vista, 2153, NSW
Telephone: 02 8883 1369
Email: adam@foresight-analytics.com
Web: www.foresight-analytics.com
About Foresight Analytics
Foresight Analytics, an independent Sydney based firm, provides investment diligence, data analytics, and advisory solutions to leading investment management companies, superannuation funds and wealth groups across the Asia Pacific. Foresight’s innovative, evidence-based approach blends both human and forensic insights to provide a range of analytical, predictive and market intelligence solutions to investors. Foresight Analytics was founded in 2015 by Jay Kumar, a former executive of Morningstar, Optimix Investment Management, ANZ Wealth & Private Bank and the Reserve Bank of Fiji.
Foresight’s fiduciary solutions include Diligence Services (Investment, Operational, ESG & Risk Diligence), Data Analytics and Asset Consulting. Foresight’s fund strategy solutions include Data Analytics for asset managers, Fund Strategy Benchmarking Solutions and Strategic Research.
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