Who’s the best performing Australia share fund?
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Bennelong has generated the best return for an Australian share fund by investing in companies who are rapidly growing on the back of the ageing population, tourism and people's demand for tasty pizza.
Bennelong's concentrated equity fund produced a 19.9 per cent return year-on-year (YOY) or 24.5 per cent (financial year to date), making it the best performing fund in its class, according to Morningstar.
Bennelong Australian Equity Partners (Bennelong) said it only invested in companies based on strong fundamentals, and not the sectors in which they fell.
Investment director, Julian Beaumont, said some of its 25 holdings were really hot stand outs, such as Domino's pizza enterprises.
"It's put down new stalls and expanded some of its overseas operations. It's had really strong momentum, has a great management team, innovative products and perhaps surprising a better food offering, which has really accelerated the business," he said.
Another strong performer that they found and invested in, pre initial public offering (IPO) was BWX, who owned the Sukin range of natural skin care products.
They initially bought in at $1.10 and it now traded at around $4.50. The company also grew from a $100 million company to $500 million, but there was plenty more growth to come, Beaumont said.
"Australian revenues were growing at about 40 per cent, so it now has the opportunity to move offshore, in places like England, Canada and the like, but most importantly China," he said.
They also found themselves in sectors of the economy that were growing, such as healthcare. That was their biggest exposure in the portfolio.
"We are talking about companies like CSL, Ramsay Health Care. And Fisher & Paykel," he said.
They also held shares in tourism and gaming, including Star Entertainment and Aristocrat, which were fuelled by the huge influx of Chinese victors, he said.
On the flip side, they also avoided resources and bonds, Beaumont added.
Behind bennelong's concentrated fund, which was ranked the best performer in Australian equities, was the Macquarie High conviction fund, with 14.7 per cent and Hyperion, with 8.9 per cent.
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