iShares Core FTSE Global Infrastructure (AUD Hedged) ETF

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/106793-2024-04-03-02:29.pdf
FUND MANAGER BlackRock Investment Management (Australia)

The Fund seeks to achieve its objective by tracking the performance of the FTSE Developed Core Infrastructure 50/50 100% Hedged to AUD Net Tax Index (referred to in this section 10 of the PDS as the Index). 


The Fund aims to provide investors with the performance of an index, before fees and expenses (including the cost of hedging). The index is designed to measure the AUD hedged performance of global developed market infrastructure securities.

BENCHMARK FTSE Developed Core Infrastructure 50/50 100% Hedged to AUD Net
FUND SIZE FTSE Developed Core Infrastructure 50/50 100% Hedged to AUD Net
FEES 0.15%



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 Funds include:


  • low cost access to diversified portfolios of international shares;
  • access to market capitalisation weighted, minimum volatility and multiple-factor exposures; and
  • currency hedged options, to seek to minimise the impact of Australian dollar volatility on investor returns.



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.




This product is likely to be appropriate for a consumer seeking
capital growth with a high to very high risk/return profile.
This product is unlikely to be appropriate for a consumer with
a short investment timeframe.



Key Features

The Fund will generally be exposed to the international developed market stocks that form the Index.
The Fund may have limited exposure to securities that are not constituents of the Index, including derivatives, where such securities provide similar performance (with matching risk profile) to Index securities. However, from time to time the Fund may be exposed to all constituents of the Index.
Generally, the Fund may also be exposed to a small allocation of cash (or cash equivalents, that may include other BlackRock Group funds) for cash flow management purposes. The Fund will also invest in forward foreign exchange contracts for currency hedging purposes.


How we invest your money

We believe that an optimisation investment strategy is the most
appropriate investment strategy to track the performance of the
Index as it takes into account liquidity and transaction cost impact and overall risk relative to the Index. Optimisation is an indexing strategy that involves investing in a representative sample of securities that collectively has an investment profile similar to that of the Index. The securities selected are expected to have, in aggregate, investment characteristics (based on factors such as market capitalisation and industry weightings), fundamental characteristics (such as return variability and yield) and liquidity measures similar to those of the Index. Therefore, the securities to which the Fund is exposed may or may not include all of the securities in its Index and the weighting of such securities may differ to the weighting of securities in the Index.
The Fund applies a passive currency hedge, which seeks to minimise the effect of currency fluctuations on returns by converting the currency exposure of the Index back to Australian dollars. Refer to the section of this PDS titled “Currency hedged funds” for further information.

The Index aims to measure the AUD hedged performance of eligible infrastructure stocks across global developed markets. Constituents are drawn from the FTSE Developed All Cap Index and must fall under one of the following Industry Classification Benchmark (ICB) Subsector
classifications to be eligible for inclusion in the Index:

Utilities (Conventional Electricity, Gas Distribution,
Multi-Utilities, Water), Transportation (Construction, Railroads, Transportation Services, Travel & Tourism), Others (Cable Television Services, Infrastructure REITs, Pipelines, Radio and TV Broadcasters, Telecommunications Equipment, Telecommunications Services).


Eligible securities are then screened to ensure at least 65% of revenues
are attributable to core infrastructure activities. Core infrastructure
activities are defined as the development, ownership, operation,
management and/or maintenance of transportation infrastructure,
energy infrastructure or telecommunications infrastructure. At the
periodic review of the constituents, companies will be excluded from
the Index if their revenue falls below 55% of that attributable to
business activity in core infrastructure activities.
In order to avoid overconcentration in any particular subsector, weights
are capped as follows as part of the semi-annual review of the Index:
► Sector: The weights of companies in the Utilities group
will be adjusted to 50% of the Index weight; the weights
of companies in the Transportation group will be adjusted
to 30% of the Index weight, and the weights of companies
in the Others group will be adjusted to 20% of the Index
Within the Transportation group the combined Index
weights of the ICB subsectors Railroads and Travel &
Tourism will be adjusted to 7.5% of the Index weight. The
ICB subsectors Construction and Transportation Services
will be adjusted to 22.5% of the Index weight.
► Stock: Investment in any individual company is capped at
The Index rebalances quarterly in March, June, September, and
December. The Index may undergo periodic unscheduled rebalances at
other times. Refer to the section of this PDS titled “Additional
information about the Index” for further information.