iShares Treasury ETF (IGB)

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/100911-2023-10-26-02:34.pdf
FUND MANAGER BlackRock Investment Management (Australia)
INVESTMENT STYLE The Fund invests in a portfolio composed of fixed income bonds issued by the Australian Treasury.
INVESTMENT PROFILE The Fund aims to provide investors with the performance of the Benchmark, before fees and expenses.
BENCHMARK Bloomberg AusBond Treasury 0+ Yr Index
FUND SIZE Bloomberg AusBond Treasury 0+ Yr Index
FEES 0.18% p.a.



Benefits of iShares

iShares ETFs are managed funds listed or quoted on exchanges (including ASX) providing you with the opportunity to gain exposure to a diversified portfolio of assets in a single transaction.

The significant benefits of investing in the Cash Funds include:

  • low cost access to a highly transparent diversified portfolio of liquid institutional-quality cash and money market securities; and
  • the ability to achieve capital preservation and either regular or potentially enhanced regular income.
  • The significant benefits of investing in the Fixed Income Funds include:
  • low cost access to diversified portfolios of Australian fixed income securities;
  • access to broad market investment grade, treasury and inflation-linked fixed income exposures; and
  • benchmarked to institutional-quality indices provided by leading index providers.

Other benefits of investing in iShares ETFs generally include:

  • Diversification: In contrast to a direct investment in a single company or bond, an iShares ETF provides, as far as possible and practicable, exposure to all of the securities or instruments within the index that the particular iShares ETF seeks to track.
  • Access global markets: iShares ETFs let you achieve international diversification by investing in overseas equity and bond markets. With iShares ETFs you can gain exposure by asset class, market capitalisation, country and sector.
  • Liquidity and transparency: Each iShares ETF seeks investment results that correspond generally to the performance (before fees and expenses) of a particular index. As a traded security, an iShares ETF enables you to enter and exit your holding on the ASX. You can easily track performance and trade during ASX trading hours (subject to ASX rules).
  • Managing risk: Investing in an iShares ETF can assist you in establishing a portfolio appropriate to your investment needs and risk profile.
  • Lower cost: As each iShares ETF is passively managed and designed to track the performance of a particular index, the expenses of managing an iShares ETF are generally lower compared to other forms of retail managed funds. However, brokerage or adviser fees may still apply when buying or selling units of an iShares ETF.
  • Receipt of income: You will generally receive income from your investment in the form of distributions. Distributions may include dividends, coupons and other income. There may be years in which no distributions are made.
  • Accessibility: iShares ETFs can offer a cost-effective way to gain exposure to a diversified portfolio of securities. They can be less costly than purchasing a large number of individual securities as there are less trading costs and they offer lower thresholds than an investor might otherwise be able to afford.




Key Features

About the Fund

The fund aims to provide investors with the performance of an index, before fees and expenses, composed of fixed income bonds issued by the Australian Treasury. 

The index, the Bloomberg AusBond Treasury 0+ Yr Index, measures the performance of a segment of the Australian bond market comprised of the fixed income securities issued by the Australian Treasury.

Why IGB?

  1. Low cost exposure to the Australian government bond market in a single fund 
  2. Diversified access to Australian government bonds with a broad range of maturities 
  3. Seek capital stability and pursue consistent income


How we invest your money

The Fund seeks to achieve its objective by tracking the performance of the Bloomberg AusBond Treasury 0+ Yr Index (referred to as the Index).

We believe that full replication is the most appropriate investment strategy to track the performance of the Index as risk relative to the Index is minimised. Our full-replication approach normally aims to purchase every security in the Index, while considering transaction costs.

If we determine that we can achieve a more efficient means of obtaining exposure to the Index, we may do so. For example, in rare circumstances where a particular constituent security of the Index cannot be acquired, a combination of existing or similar securities in the Index, of like quality, would be used.

What does the Fund invest in?

The Fund generally invests in the fixed income securities issued by the Australian Treasury that form the Index.

The Fund may also hold small amounts of cash (or cash equivalents, that may include units in other BlackRock funds) for cash flow management purposes and may also invest in index futures contracts for cash bondisation purposes.

About the Index

The Index is designed to measure the performance of the Australian bond market which meets certain investment criteria and covers fixed interest securities issued in the Australian debt market under Australian law. The Index, a sub-index of the Bloomberg AusBond Composite IndexSM, is market value weighted and designed to measure the total return from investing in a range of Index eligible securities. Below is a description of the manner in which the debt securities included are determined. The Index has been calculated since 31 March 1988.

For more information please see Section 7 of the PDS