BML Funds Management are a global investment team managing over $1billion in international asset portfolios for clients. We are an independent boutique firm that launched in 2023 and we are 100% owned by management. Although we are a new company we have a long history of stock market investment built on a strong academic background.
Business founder Ted Alexander named BML after his children. We aim to foster a culture of strong relationships, consistent evolution, and above all an ethical standard to be proud of.
In 2023 we launched the BML Global Fund for Australian wholesale investors to access a portfolio of 30-40 international listed stocks, and we also provide a UCITS solution for offshore investors and private investment mandates to wholesale clients.
The BML Global Fund
The BML Global Fund is for Australian wholesale investors only. To find out more about investing in the fund, please get in contact via info@bmlfunds.com
The BML Global Fund is a core global equity fund that seeks to invest in strong businesses that are undervalued by the market, while aiming to limit the risk of capital loss to investors.
The Portfolio is actively managed by Ted Alexander, the BML Chief Investment Officer, and was launched 12 October 2023.
Performance
The BML Global Fund targets positive alpha through the cycle, and has generated alpha of 0.5% since inception as of 30 June 2024. This is measured using Jensen's Alpha, which adjusts market returns for risk. Since inception, the portfolio has a risk level at 79% of the benchmark, as measured by beta.
Fund positions as of 30 June 2024. Geographic exposure is look through to operating profit where possible
Process
A global equity fund with uncorrelated alpha at the core of the process
The BML Global Fund targets superior returns to our benchmark, accounting for potential risk. This is known as alpha.
The BML Global Fund is built to target outperformance, without a bias towards value or growth stocks. From a universe of over 1,000 global stocks, we build a portfolio of 30-40 stocks with the highest potential returns while limiting downside. These stocks are screened to ensure the fund is fully liquid. The businesses we invest in predominantly operate in developed markets, with a balanced exposure to major economic regions and major industries.
We are active managers. For each stock in the portfolio, we model full business accounts forward for at least ten years to assess the true value and seek stock market mispricing. We personally meet with company management, update our assumptions with regular data releases, and we actively manage the portfolio through constant reassessment of our holdings and trading to maintain our target position.
The fund integrates ESG considerations into investment decisions. As such we generally avoid investments in energy and mining companies. We also integrate ESG at a company level: we aim to reduce carbon emissions through unnecessary international travel for company meetings, reduce our corporate footprint, and ensure our own governance meets the standard we hold our investments to.
Portfolio Manager Ted Alexander
Fund Type Managed investment scheme
Structure Unit Trust
Investors Wholesale
Trustee Boutique Capital
AFSL Havana Financial
Platform access HUB24
Fees 0.85% plus GST
Performance fee 10% over MSCI World with HWM
Buy/Sell spread Zero
Style Core Global / GARP
ESG Integrated
Target tracking error 5%
Target risk Below Benchmark
Target stocks 30-40
Target market cap Liquid: $50bn median
Target P/E In-line with market
APIR Code BQC5949AU
Minimum Investment $50,000 (N/A via platform)
People
Ted Alexander
"I have worked for many years to launch an independent funds management business. I have strong conviction in a distinct investment process, based on 20 years of research and experience. I have worked with founders of successful funds businesses and am now excited to bring BML Funds to the market."
BML's Chief Investment Officer, Ted Alexander, has been managing investment portfolios since 2008 in London and Sydney. Ted has been the lead Portfolio Manager on multiple funds with a cumulative AUM of over $2.6bn, covering equities and bonds in US, Europe, and Asia, and has led sector research on healthcare, technology, and telecoms.
Ted holds a Master of Philosophy in Economics from the University of Oxford as a Rhodes Scholar and First Class Honours in Economics from the University of Tasmania.
Ying Luo
Ying Luo works alongside Ted as a Portfolio Manager at BML Funds. Ying and Ted have worked together since 2018.
Ying has over 17 years of dedicated equity buy-side experience at Orca Funds, Principal Global Investors, and AMP Capital Investors.
Ying holds a Master of Commerce at UNSW, a Bachelor of Commerce at University of Melbourne, is a CFA Charterholder and a member of CPA Australia.
Investment Committee
Dr Isaac Poole
Isaac Chairs the Investment Committee. Isaac is the Chief Investment Officer at Oreana Portfolio Advisory Service, and holds a Ph.D in economics from the University of Sydney. Isaac is an expert in asset allocation and financial markets. Isaac previously worked with Ted at the RBA.
Justin Fabo
Justin advises the Committee on macroeconomics. Justin has been a Senior Economist at Macquarie, AlphaBeta, ANZ, and the Reserve Bank of Australia. Justin holds First Class Honours in Economics from the University of Western Australia. Justin has worked with Ted at the RBA.
Dr Jonathan Nambiar
Jonathan advises the Committee on medical and scientific issues. Jonathan holds a Ph.D from the University of Sydney in Immunology and Infectious Diseases and has been the Director of Operations at AbCellera Australia and Channel Bio. Jonathan worked with Ted at Magellan
Investment Framework
We set out to build BML differently. We aim to embrace an academic process of questioning how investment decisions should be made, interrogating our framework, and optimising our behaviour.
Investing is much more than picking companies you like. We think optimal investing is mathematical, economic, philosophical, and scientific. Building a portfolio is an optimisation problem with 35 variables selected from a universe of 1,000 stocks, controlling for cross correlation, exposure to geographic and industrial factors, and managing volatility. The bulk of the preparation for a portfolio is a strong numerical process that calibrates a very large dynamic unstructured data set into a solvable problem. The human element is most important at the portfolio management level, structuring the portfolio to fit the macro outlook and risk management framework.
The BML view of stock markets is through the lens of maximising expected returns for investors while limiting downside exposure. How can we build a portfolio where the investor receives the highest return possible for the risk of capital loss they will endure? This drives the search for investment efficiency, known as alpha.
We don't claim any intuitive natural ability to pick stocks from the crowd, but we do believe that a strong analytical investment process backed by robust philosophy, proven mathematical framework, and cutting edge financial economics will outperform. But we're also not a quant fund. We rely on our years of experience in the market to guide our decision making, and one lesson we've learned is that financial data can be misleading and require human error correction.
Our investment strategy is based on proprietary work on systematic equity valuation using an implied cost of capital framework. To find out more, please refer to our paper via the link below:
Precursor fund: Orca Global Fund (closed)
Ted Alexander was the Portfolio Manager on the Orca Global Fund from 2018 to 2022. The fund returned 48.92%* over the active life compared to 41.41% for the benchmark MSCI World Index. The fund invested using the same process as the BML Global Fund, with 30-40 stocks, and targeting uncorrelated alpha. The Orca Global Fund is now closed, and we are showing the Portfolio Manager's track record for reference only.
* Australian dollars, gross returns of equity and cash holdings, excluding fees and non-managed assets from inception on 9 July 2018 to the end of active management on 30 June 2022. Sourced from Bloomberg portfolio and risk analytics. Past performance is not a reliable indicator of future performance
This document has been prepared and issued by BML Funds Management Pty Limited (Investment Manager) (ACN 664 470 991) BML Funds Management Pty Ltd is a Corporate Authorized Representative (No. 001230) of Havana Financial Services Pty Ltd (ABN 90 619 804 518, AFS Licence No. 500435) (Havana). Any advice contained in this communication is general advice only. None of the information provided is, or should be considered, personal financial advice. The content has been prepared without taking into account your personal objectives, financial situations or needs. If you consider it necessary you should seek your own advice before making any financial or investment decisions. The information provided in this communication is believed to be accurate at the time of writing. None of BML Funds Management, Havana or their related entities nor their respective officers and agents accept responsibility for any inaccuracy in, or any actions taken in reliance upon, that information.
This document is not intended to be a research report (as defined in ASIC Regulatory Guides 79 and 264). Unless otherwise indicated, all views expressed herein are the views of the author and may differ from or conflict with those of others within the group. The views expressed herein should be considered as part of a wider portfolio investment strategy applicable to the relevant fund or model portfolio and should not be considered in isolation or relied on to make an investment decision without seeking further information and/or advice from a financial adviser.
This report may contain statements, opinions, projections, forecasts and other material (forward-looking statements), based on various assumptions. Those assumptions may or may not prove to be correct. The Investment Manager and its advisers (including all of their respective directors, consultants and/or employees, related bodies corporate and the directors, shareholders, managers, employees or agents of them) (Parties) do not make any representation as to the accuracy or likelihood of fulfilment of the forward-looking statements or any of the assumptions upon which they are based. Actual results, performance or achievements may vary materially from any projections and forward-looking statements and the assumptions on which those statements are based. Readers are cautioned not to place undue reliance on forward-looking statements and the Parties assume no obligation to update that information. The Parties give no warranty, representation or guarantee as to the accuracy, completeness or reliability of the information contained in this report. The Parties do not accept, except to the extent permitted by law, responsibility for any loss, claim, damages, costs or expenses arising out of, or in connection with, the information contained in this report. Any recipient of this report should independently satisfy themselves as to the accuracy of all information contained in this report.
Past performance is not a reliable indicator of future performance. Future performance and return of capital is not guaranteed
