GGUS is ‘internally geared’, meaning all gearing obligations are met by the Fund. GGUS invests in a broadly diversified share portfolio consisting of the largest 500 shares listed in the U.S. by market capitalisation. The Fund’s gearing ratio is managed between 50-65%.

The investment objective of the Fund is to provide geared exposure to the returns of the U.S. share market, hedged to Australian dollars.

The BetaShares Geared U.S. Equity Fund-Currency Hedged (hedge fund) (the Fund) is a managed investment fund whose units will trade on the ASX, much like listed shares.

The investment objective of the Fund is to provide geared exposure to the returns of the U.S. share market, hedged to Australian dollars.

The Fund will seek to achieve this objective by combining application money from investors with borrowed funds, and investing the proceeds in a portfolio that provides exposure to a broadly diversified basket of U.S. equities, generally consisting of approximately 500 of the largest equity securities listed in the U.S., weighted by their market capitalisation.

The Fund is “internally geared”, which means the Fund borrows the money, instead of investors. Investors are not exposed to the risk of paying “margin calls” in market downturns, as all gearing obligations are met within the Fund. The aim of gearing is to invest more capital and to provide greater exposure to the U.S. share market. Because the Units of the Fund are quoted on the ASX, investors can benefit from simple trading of their investment, including the ability to buy and sell during the course of the trading day, much like listed shares .

The investment objective of the Fund is to provide geared exposure to the returns of the U.S. share market, hedged to Australian dollars.

The Fund will seek to achieve this objective by combining application money from investors with borrowed funds, and investing the proceeds in a portfolio that provides exposure to a broadly diversified basket of U.S. equities, generally consisting of approximately 500 of the largest equity securities listed in the U.S., weighted by their market capitalisation.

The Fund is “internally geared”, which means the Fund borrows the money, instead of investors. Investors are not exposed to the risk of paying “margin calls” in market downturns, as all gearing obligations are met within the Fund.

The aim of gearing is to invest more capital and to provide greater exposure to the U.S. share market. 

As at the date of this PDS, the Responsible Entity does not intend to use derivatives in implementing the investment strategy, but reserves the right to use exchange traded derivatives in the future.

Investors will receive returns from

(1) the change in the value of the Fund’s share portfolio (expressed in Australian dollars) magnified by the effects of gearing, which will be reflected in the daily Net Asset Value per Unit and

(2) any distributions paid to investors, normally semi-annually.

The strategy’s ability to produce investment returns is largely dependent on general U.S. share market conditions, prevailing interest rates and the availability of acceptable finance for gearing, and may be influenced by the risks associated with the product.

Diversification in the Fund’s equity portfolio will be achieved through its exposure to approximately 500 of the largest equity securities listed in the U.S., generally weighted by their market capitalisation.

The Fund does not have specific diversification guidelines or limits.