The Fund will aim to achieve the investment objective by investing its assets into a portfolio of dividend paying Australian equity securities.

HVST aims to provide franked income that exceeds the net income yield of the broad Australian sharemarket on an annual basis, along with exposure to a diversified portfolio of Australian shares.

Benefits of investing in the BetaShares Australian Dividend Harvester Fund

• High income - HVST’s income stream aims to exceed the net income yield of the broad Australian sharemarket on an annual basis, paid monthly. HVST was specifically created to meet the challenges facing investors for whom income is a high priority, such as SMSF and retiree investors.

• Equity returns with reduced downside market risk - exposure to the majority of the upside total return potential of the securities portfolio, with the benefit of potentially reduced downside in declining markets

• Enhanced franking credits - Fund seeks to provide a higher level of franking credits compared to the broad Australian sharemarket

• A smoother ride - potential for reduced volatility despite changing market conditions

• Cost effective - cost of Fund is lower than traditional active managers focussing on Australian equities

• Liquidity - available to trade on the ASX like any share

• Transparent - Fund's portfolio, value of the Fund's assets and net asset value per unit available daily on our website

This product is likely to be appropriate for a consumer seeking tax-effective monthly income distributions by providing exposure to a portfolio of Australian shares, combined with a risk management strategy that actively seeks to reduce volatility of the product’s equity investment returns and cushion downside market risk. The product may be used as a small allocation to Australian equities, within a portfolio where the consumer has a medium to long investment timeframe (5+ years), high risk/return profile and needs daily access to capital. 

About the Fund

• Specifically designed to meet the investment challenges of SMSFs and retiree investors

• Provides exposure to large-cap Australian shares, along with potential for franked income that is at least double the yield of the Australian broad sharemarket on an annual basis

• Risk management strategy seeks to cushion downside market risk

• Opportunity for tax-effective income paid monthly

Investment objective

The Fund aims to provide investors with exposure to large capitalisation Australian shares along with regular franked dividend income, paid monthly, that is at least double the income yield of the broad Australian sharemarket on an annual basis.

In addition, the Fund aims to reduce the volatility of the equity investment returns and defend against losses in declining markets.

Investment Strategy

The Fund will aim to achieve the investment objective by investing its assets into a portfolio of dividend paying Australian equity securities (the “Securities Portfolio”).

The Securities Portfolio will generally consist of large capitalisation Australian securities selected from amongst the 100 largest securities, by market capitalisation, listed on the ASX (the “Investment Universe”).

How we invest your money

The Fund will aim to achieve the investment objective by investing its assets into a portfolio of dividend paying Australian equity securities (the “Securities Portfolio”).

The Securities Portfolio will generally consist of large capitalisation Australian securities selected from amongst the 100 largest securities, by market capitalisation, listed on the ASX (the “Investment Universe”).

Portfolio rebalancing frequency

Approximately every three months.

At each portfolio rebalance, the Responsible Entity will identify all securities in the Investment Universe that are expected, within the next rebalance period, to give a holder an entitlement to a dividend. This is assessed based on past declared dividends or analyst estimates.

Weighting method for securities in Securities Portfolio

Securities are weighted based on a modified market capitalisation approach. Each security is assigned its free float market capitalisation weight subject to a cap on direct investment in any individual security, generally being the lower of 10% of the value of the Fund’s overall portfolio or four times the weight of the security in the Investment Universe at the time of portfolio rebalance.

Sector exposure

The composition of the Securities Portfolio will largely be sector neutral relative to the Investment Universe at the time of rebalance. Should sector neutrality not be achieved based on the securities expected to pay an upcoming dividend and their individual weighting caps, the largest non-dividend paying securities by market capitalisation in the Investment Universe will be added to the Securities Portfolio to achieve sector neutrality.

Use of ETFs to provide added diversification

There will also be a permanent allocation in the Fund’s portfolio to an exchange traded fund quoted on the ASX that seeks to track a published, broad-based Australian equity index. This ETF allocation will generally be in the range of 15-30% of the Fund’s net asset value as at each portfolio rebalance.

Initially, the allocation will be 25% of the Fund’s net asset value as at portfolio rebalance, which will be to the BetaShares Australia 200 ETF.

For more information, see section 2.1.2 of the product PDS.