iShares Core Composite Bond ETF (IAF)
About this Fund
Fund Detail
PDS | https://informedinvestor.com.au/view/pds/100913-2023-10-26-02:32.pdf |
FUND MANAGER | BlackRock Investment Management (Australia) |
ASX Code | IAF* |
APIR | |
ASSET CLASS | EXCHANGE TRADED FUNDS |
INVESTMENT STYLE | The Fund invests in a portfolio composed of investment grade fixed income bonds issued in the Australian debt market. |
INVESTMENT PROFILE | The Fund aims to provide investors with the performance of the Benchmark, before fees and expenses. |
CURRENCY MANAGEMENT | Unhedged |
INCEPTION DATE | 12-03-2012 |
BENCHMARK | Bloomberg AusBond Composite 0+ Yr Index |
FUND SIZE | Bloomberg AusBond Composite 0+ Yr Index |
DISTRIBUTION FREQUENCY | Quarterly |
NO. OF HOLDINGS | 500+ |
FEES | 0.10% p.a. |
STRUCTURE |
Benefits
Benefits | Benefits of iSharesiShares 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:
Other benefits of investing in iShares ETFs generally include:
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RISK LEVEL | |
INVESTOR SUITABILITY |
Risks
Title | |
Detail |
Key Features
About the FundThe fund aims to provide investors with the performance of an index, before fees and expenses, composed of investment grade fixed income bonds issued in the Australian debt market. The index, the Bloomberg AusBond Composite 0+ Yr Index, is designed to measure the performance of the Australian bond market and includes investment grade fixed income securities issued by the Australian Treasury, Australian semi-government entities, supranational and sovereign entities and corporate entities. Why IAF?
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Mandate
How we invest your moneyThe Fund seeks to achieve its objective by tracking the performance of the Bloomberg AusBond Composite 0+ Yr Index (referred to the Index). We believe that stratified sampling is the most appropriate investment strategy to track the performance of the Index as it takes into account liquidity, transaction cost impact, and overall risk relative to the Index. Stratified sampling involves choosing a subset of Index eligible securities to create a portfolio that behaves like the Index. In many cases, holding every security in the Index is not cost effective as illiquid or thinly traded securities incur higher transaction costs and wider bid-ask spreads. By investing in a subset of securities that combine to match the overall risk profile of the Index it saves the Fund incurring unnecessary trading costs which can detract from total Fund returns. A stratified sampling approach is usually accomplished by dividing the Index into strata or "cells along some of the more common fixed income security attributes such as maturity, sector, and credit quality. Securities are then chosen that have similar risk and return characteristics that replicate each of the cells and in units consistent with Index exposures. What does the Fund invest in?The Fund generally invests in the investment grade fixed income securities issued by the Australian Treasury, Australian semi-government entities, supranational and sovereign entities and corporate entities that form the Index. While it its intended that the securities invested in by the Fund will comprise investment grade issues, issues may be downgraded or the credit rating may be withdrawn in certain circumstances from time to time. In such event, the Fund may hold non-investment grade issues until such time as such non-investment grade issues cease to form part of the Index (where applicable) and it is possible and practicable (in the view of BlackRock) to liquidate the position. The Fund may hold some securities which are not constituents of the Index where such securities provide similar performance (with matching risk profile) to certain securities that make up the Index. However, from time to time the Fund may hold all constituents of 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 IndexThe 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 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 30 September 1989. For more information please see Section 4 of the PDS |