BetaShares Managed Risk Australian Share Fund (AUST)
About this Fund
Fund Detail
PDS | https://informedinvestor.com.au/view/pds/100907-2023-01-06-02:20.pdf |
FUND MANAGER | Milliman Pty Ltd |
ASX Code | AUST* |
APIR | |
ASSET CLASS | ACTIVE EXCHANGE TRADED FUNDS |
INVESTMENT STYLE | The Fund provides exposure to a broadly diversified portfolio of 200 of the largest Australian shares. |
INVESTMENT PROFILE | The Fund aims to provide exposure to a broadly diversified portfolio of Australian shares, while reducing the volatility of returns and defending against losses. |
CURRENCY MANAGEMENT | Unhedged |
INCEPTION DATE | 09-11-2015 |
BENCHMARK | N/A |
FUND SIZE | N/A |
DISTRIBUTION FREQUENCY | Half-yearly |
NO. OF HOLDINGS | Around 200 |
FEES | 0.39% p.a. |
STRUCTURE |
Benefits
Benefits | Benefits of investing in the BetaShares Managed Risk Australian Share Fund
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RISK LEVEL | |
INVESTOR SUITABILITY |
Risks
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Detail |
Key Features
About the Fund
Investment objectiveThe Fund aims to provide exposure to a broadly diversified portfolio of Australian shares, while reducing the volatility of the equity investment returns and defending against losses in declining markets. The Managed Risk StrategyIn addition to investing in the share portfolio, the Fund employs a risk management strategy. The Fund actively monitors sharemarket volatility and, when volatility rises, applies a "handbrake to reduce the impact of major market declines. It does this by reducing investors' exposure to shares in falling markets, while still allowing a level of participation in rising markets. The risk management strategy utilised by the Fund aims to provide investors with a smoother investment ride. The risk management strategy is implemented by selling equity index futures contracts (i.e. ASX SPI 200 futures). Selling futures can be expected to generate a positive return when the sharemarket declines, and a negative return when the sharemarket rises. The extent of the risk management position will vary over time based on the existing and historic volatility of the share portfolio. Typically, the risk management position is expected to be in the range of 10-50%, and will not exceed 70%, of the Fund's net asset value. Generally, in periods of higher volatility, futures exposure will be increased, with the objective of lowering the Fund's volatility and reducing downside exposure. How to use this ETF in your portfolioWhile the Fund is expected to have broad application and be suitable for a variety of investors, it has been specifically designed to meet the needs of SMSFs, pre-retirees and retiree investors. The Fund can be used to implement a variety of investment strategies. For example:
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Mandate
How we invest your moneyThe Responsible Entity will aim to achieve the investment objective by investing the assets of the Fund in a broadly diversified share portfolio, generally consisting of approximately 200 of the largest equity securities listed on the ASX, weighted by their market capitalisation and rebalanced quarterly (the "Securities Portfolio) and selling ASX SPI 200 futures contracts to manage volatility and cushion downside risk. Although it does not intend to do so as at the date of this PDS, the Responsible Entity may hold exchange traded funds quoted on the ASX that seek to track published Australian equity indices (such as the S&P/ASX 200 Index) where the Responsible Entity believes this will assist in meeting the Fund's investment objective. Only ETFs that obtain their investment exposure through direct investment in underlying index constituents will be held as part of the Securities Portfolio. In addition to investing in the Securities Portfolio, the Fund will sell equity index futures contracts (i.e. ASX SPI 200 futures) with the aim of managing the Fund's overall volatility and cushioning downside risk by hedging against market declines. Selling ASX SPI 200 futures can be expected to generate a positive return when the sharemarket declines, and a negative return when the sharemarket increases. The extent to which futures positions will be used will vary over time (typically futures exposure is expected to be in the range of 10-50%, but will not exceed 70%, of the Fund's net asset value) based on the existing and historic volatility of the securities in the Securities Portfolio and the Australian sharemarket in general. Generally, in periods of higher volatility, futures exposure will be increased, with the objective of lowering the Fund's volatility and reducing (although not eliminating) downside exposure. The Responsible Entity will only use futures for the purpose of hedging and volatility management and not to leverage the Fund. The Fund will maintain a cash balance to cover distribution payments and any margin requirements in relation to futures positions. |