Russell Investments Australian Government Bond ETF (RGB)
Fixed income in 2023: Is a renaissance coming? |
About this Fund
Fund Detail
PDS | https://informedinvestor.com.au/view/pds/100974-2024-05-02-02:39.pdf |
FUND MANAGER | Russell Investment Management |
ASX Code | RGB* |
APIR | RGV |
ASSET CLASS | EXCHANGE TRADED FUNDS |
INVESTMENT STYLE | RGB invests in a portfolio of predominantly Australian government fixed income securities. |
INVESTMENT PROFILE | The Fund seeks to match the performance of its Benchmark Index before fees and other costs. |
CURRENCY MANAGEMENT | Unhedged |
INCEPTION DATE | 08-03-2012 |
BENCHMARK | DBIQ 5-10 year Australian Government Bond Index |
FUND SIZE | DBIQ 5-10 year Australian Government Bond Index |
DISTRIBUTION FREQUENCY | Quarterly |
NO. OF HOLDINGS | Around 10 |
FEES | 0.24% p.a. |
STRUCTURE |
Benefits
Benefits | Benefits of investing in the Russell Investments Australian Bond ETFsWhat are the benefits of ETFs in general?
What are the benefits specific to the Fund?
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RISK LEVEL | |
INVESTOR SUITABILITY |
Risks
Title | |
Detail |
Key Features
About the FundThe Russell Investments Australian Government Bond ETF (the 'Fund') seeks to track the performance of the DBIQ 5-10 year Australian Government Bond Index ('the Index'), which comprises predominantly Australian government fixed income securities. The Fund aims to provide exposure to the largest and most liquid Australian Government bonds as identified by certain eligibility criteria including minimum issuance size and term to maturity. The Fund also aims to deliver diversified risk through equally weighting the securities on reconstitution to ensure that the exposure is not biased towards the largest creditors or borrowers. About the IndexThe DBIQ 5-10 year Australian Government Bond Index is a fixed income index provided by Deutsche Bank (Index Provider). It is designed to provide investors with diversified and investable exposure to Australian Government fixed income securities. The DBIQ 5-10 year Australian Government Bond Index starts with a universe of Australian fixed income securities. A number of filters are applied to the universe to ensure that the eligible fixed income securities are issued by Australian institutions, and have features (including but not limited to) of fixed rate, non-callable, fixed coupon paying terms. The DBIQ 5-10 year Australian Government Bond Index then specifically identifies fixed income securities that are Commonwealth Government fixed income securities, and that have a minimum issuance outstanding of over $2 billion based on face value to ensure sufficient liquidity. The fixed income securities are then ranked by term to maturity (TTM), and a maximum of ten securities closest to approximately 10 years TTM are selected, with a minimum TTM rule of approximately 5 years. The fixed income securities are then equally weighted based on market value on the day of reconstitution. The DBIQ 5-10 year Australian Government Bond Index is reconstituted quarterly, with the above rules applied and equal weighting occurring on reconstitution. The weighting of the individual fixed income securities is likely to vary in between reconstitutions based on price movements. Coupons received from the constituents are to be reinvested back into the relevant security or securities. More details about the characteristics of the DBIQ 5-10 year Australian Government Bond Index are available at: http://index.db.com. |
Mandate
How we invest your moneyThe Fund seeks to track the performance of the DBIQ 5-10 year Australian Government Bond Index by investing predominantly in Australian Government fixed income securities. The the DBIQ 5-10 year Australian Government Bond Index filters the largest and most liquid Commonwealth Government fixed income securities and weights them equally upon reconstitution. Derivatives may also be used to a limited extent to obtain or reduce exposure to such securities. We will not significantly change the Fund's investment strategy as described in this PDS unless the change has been approved by a resolution of Unitholders passed by at least 75% of votes cast on the resolution. DerivativesA Fund may use bond and bond index futures contracts that are listed on the Sydney Futures Exchange to give cash holdings market exposure in order to achieve a desired investment position without buying or selling the underlying assets. Futures usage will generally be limited to a maximum of 5% of a particular Fund's value at any time. Derivatives will not be used speculatively or to leverage a Fund. |