BlackRock GSS Global Bond Index Fund
About this Fund
|FUND MANAGER||Netwealth Investments|
|ASSET CLASS||EXCHANGE TRADED FUNDS|
|INVESTMENT STYLE||The Fund currently invests in the iShares Global Bond Index Fund managed by BlackRock Investment Management (Australia) Limited.|
|INVESTMENT PROFILE||The Fund seeks to provide investors with the performance of the Benchmark, before fees, the cost of currency hedging and any applicable interest and withholding taxes.|
|BENCHMARK||Bloomberg Barclays Global Aggregate Index|
|FUND SIZE||Bloomberg Barclays Global Aggregate Index|
|NO. OF HOLDINGS|
Benefits of investing in the BlackRock GSS Global Bond Index Fund
The Underlying Fund that the Fund currently invests in is an index fund. Index funds are designed to provide an investment return that matches or is similar to the investment return of a particular market index. Market indices measure the performance of particular types of investment. Often, they measure the performance of shares and other investments listed on a stock exchange. Currently, the market index chosen is the Bloomberg Barclays Global Aggregate Index (Hedged to AUD). Index funds have a number of advantages:
The disadvantage of index funds is that they will likely not outperform the chosen index.
The manager of the Underlying Fund seeks to remove the effect (in Australian dollar terms) of currency fluctuations on the returns of the Underlying Fund by converting the currency exposure of the Underlying Fund back to Australian dollars. This is done by the forward sale of a set of currencies in amounts that correspond to the value of international assets in the Underlying Fund. This can be done in a number of ways, such as buying currency forward contracts, futures contracts and currency options.
While currency hedging has the advantage of removing or reducing the risk of investment values falling (in Australian dollar terms) due to the Australian dollar rising, it also has the disadvantage that, if the Australian dollar falls, the benefit of the exchange gain is lost or reduced.
Access to professional investment managers
By investing through one or more Underlying Funds, the Fund gives you the benefit of access to the professional investment managers who operate those Underlying Funds.
Pooling of investors' funds
The pooling of a number of investors' funds assists the investment manager(s) of the Underlying Fund(s) in implementing its indexing strategy efficiently.
A simple way of investing and switching your investment
The Fund provides a simple way of investing through your platform account and allows you to withdraw your investment when you wish to. Generally, by giving us directions through your platform account, you can withdraw your investment in the Fund at any time, as described in section 2. You can also give us directions to switch your investment to other funds available through your platform account if you decide you wish to change your investment in the future (see section 5 of the PDS).
Online information about your investment
As an investor in the Fund through a platform account, you have online access to obtain information about the investment.
Long term investors seeking a broad hedged exposure to investment-grade global bonds.
About the Fund
To invest in or otherwise provide an exposure to the securities comprising the Bloomberg Barclays Global Aggregate Index (Hedged to AUD) in a way that seeks to achieve the performance of that index. Generally, this is done by the Underlying Fund or Underlying Funds (either directly or through one or more other funds) purchasing a selection of some of the securities that form the index and which the manager of the Underlying Fund believes will create a portfolio that behaves like the index. Derivatives such as futures, forwards and options may be used in certain circumstances to provide part of the exposure. The investment strategy is implemented by investing through the Underlying Fund or Underlying Funds.
Investment return objective
The Fund's objective is to provide investors with the performance of the Bloomberg Barclays Global Aggregate Index, before fees, the cost of currency hedging and any applicable interest and withholding taxes.
The investment return objective is expressed before the deduction of management fees, expense recoveries (including the cost of currency hedging) and taxation, i.e. performance is measured relative to the benchmark before fees, costs and taxes are deducted. The investment return objective is not intended to be a forecast of actual performance; it is merely an indication of what is aimed to be achieved over the investment time horizon. Netwealth does not guarantee that the Fund will achieve its investment return objective.
How we invest your money
Currently the Fund is invested in the iShares Global Bond Index Fund (ARSN 090 168 193) managed by BlackRock Investment Management (Australia) Limited (ABN 13 006 165 975, AFS Licence 230523). BlackRock Investment Management (Australia) Limited has given and has not withdrawn before the preparation date of this PDS, its written consent to be named in this PDS as the manager of iShares Global Bond Index Fund in the form and context in which it appears in the PDS.
Strategic asset allocation
The Fund is intended to be exposed to a selection of the securities in the Bloomberg Barclays Global Aggregate Index (Hedged to AUD). Therefore, it does not have a pre-determined asset allocation but instead seeks exposure to assets matching the composition of that index by investing in the Underlying Fund or Underlying Funds.