A strategic investment company headquartered in Australia, Bentley Capital Limited (ASX: BEL) is engaged in the investment of capital and skills into developing companies having strong capital growth potential. The company prefers investing in ASX listed companies, but it also considers equity positions in private businesses with a predictable commitment to ASX listing or other exit. The company intends to generate outstanding absolute returns for the benefit of its shareholders.
The company has a unique investment strategy, it is neither an equities fund manager nor a venture capital or private equity firm. Bentley seeks for companies that are not on traditional professional investors’ radar and offer both deep value on entry and significant near-term upside.
Bentley is headed by a team of experts, comprising Mr Farooq Khan (Chairman), Mr William Johnson (Non-Executive Director), Mr Simon Cato (Non-Executive Director) and Mr Victor Ho (Company Secretary).Mr Khan, Mr Johnson and Mr Ho are also the members of the Investment Committee that administers the Investment Strategy of Bentley Capital Limited.
The Investment Committee approves all the investment decisions of the company. The company’s focus is to deliver overall returns for shareholders exceeding the benchmark ASX All Ordinaries Index (XAO).
Bentley’s Investment Strategy has the following features:
- Consider private projects, businesses and assets where an exit event is expected and foreseeable.
- Prefer investment in ASX listed companies (with market cap below $100 million having a “sweet spot” of up to $30 million).
- Seek deep value at the entry price, utilize temporary undervalued situations, companies with cash backing, or where optionality is included in the share price due to the value of assets being neglected.
- A special situation or event may often become an opportunity for the company’s entry.
- Look for business or asset having significant capital growth potential.
- Take an active role in the strategic direction of investee companies if the size of the investment is substantial, by either collaborating with management or seeking a seat on the Board.
The majority of the company’s funds are held under management by CBG Asset Management Limited, a Sydney based fund manager, that invests in stocks with maintainable dividend yields, value stocks, growth stocks and special situations. The funds held under management are kept in the CBG Fund which is a wholesale fund (not open to retail investors) aiming to surpass the S&P/ASX 200 Accumulation Index over the medium term. Bentley intends to reduce the company’s investment in the CBG Fund gradually.
The company had recently announced the details of Clime CBG Australian Equities Fund (CBG Fund) and its unaudited after-tax Net Tangible Assets (NTA) Backing for April 2019.
CBG Fund Details for April 2019
Bentley had 17 per cent of its net assets i.e., ~$1.22 million invested in CBG Fund in April 2019 while it had ~$1.26 million invested in the last month. The equity portfolio contained 29 holdings, and 76.3 per cent of the equity portfolio was invested in companies contained within the S&P/ASX 200 Index while the balance was invested in companies outside of the S&P/ASX 200 Index. The equity weighting was at 82.1 per cent in April 2019 against 80.9 per cent in March 2019.
NTA Backing Details for April 2019
The company informed that its unaudited after-tax NTA Backing at 30th April 2019 was $0.0939 per share as against $0.1148 at 31st March 2019.
In February this year, the company announced an update on its Dividend Policy in which it mentioned that the dividends would be funded from Bentley’s Profits Reserve account.
The Profits Reserve account contains funds from the Company’s net profits earned during relevant periods from time to time. Bentley informed that the annual distributions would be franked to the extent that available franking credits permit. The company plans to make dividend payments within the range permitted by law and subject to prudent business practice.
The company’s stock last traded at AUD 0.080 on 22nd May 2019.
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