Betashares Australian Investment Grade Corporate Bond Fund (NZD Hedged)

Earn attractive income from Australian corporate bonds

Factsheet

Overview

Fund objective

The Fund aims to track the performance of an index (before fees and expenses) that provides intelligent exposure to a portfolio of senior, fixed-rate, investment grade Australian corporate bonds, hedged into NZ dollars.

Fund strategy

The Fund’s strategy is to either invest in the securities that make up the Solactive Australian Investment Grade Corporate Bond Select TR NZD Hedged Index or invest in ASX traded ETFs that provide exposure to the Index. The Index comprises a portfolio of Australian dollar – denominated corporate bonds with maturities between 5.25 and 10.25 years, hedged into NZ dollars.

Benefits

  • Attractive income paid monthly

    Income is paid monthly at a rate expected to be higher than Australian term deposits, government and composite bond exposures.

  • Invest in bonds intelligently

    The Fund selects bonds based on expected returns rather than debt outstanding, seeking to avoid the shortcomings of traditional debt-weighted indices and provide higher returns.

  • Currency-hedged

    The Fund is currency-hedged to the New Zealand dollar, substantially reducing the effects of currency fluctuations on returns.

There are risks associated with an investment in the Fund including interest rate risk, credit risk, market risk and index tracking risk. Investment value can go up and down. An investment in the Fund should only be considered as a part of a broader portfolio, taking into account your particular circumstances, including your tolerance for risk. For more information on risks and other features of the Fund, please see the Product Disclosure Statement, SIPO and OMI available on this website.

Risk indicator

The Fund is expected to have a medium to high level of volatility. See the PDS for more information regarding the risk indicator.

How to invest

  • You can invest in Betashares NZ funds through an approved platform
  • Contact us to enquire about direct applications (minimum investment $500,000)

Key facts

Profile

NAV / Unit $1.0589
Net assets ($NZ) $6,195,170
Annual Fund Charges 0.34%
Buy/Sell spread Up to 0.50%/0.20%
Distribution frequency Monthly
Distribution reinvestment plan (DRP) Full participation available
Manager Betashares Capital NZ Ltd
Registry Link Market Services
Supervisor Trustees Executors Limited
Download NAV history

* As at 11 June 2024

* As of close of previous day

Index information

Index Solactive Australian Investment Grade Corporate Bond Select TR NZD Hedged Index
Index provider Solactive AG
Index ticker N/A
Bloomberg index ticker SOLAIGNH Index

Portfolio characteristics

Running yield (local currency, % p.a.) 4.77
Yield to maturity (local currency, % p.a.) 5.76
Yield to worst (local currency, % p.a.) 5.76
Estimated FX hedging impact (% p.a.) 1.05
Average maturity (yrs) 7.17
Modified duration (yrs) 5.81
Average credit rating BBB+
As at 13 June 2024

Holdings & allocation

Portfolio exposure

Name Weight (%)
VICINITY CENTRES TRUST 6.19% APR-34 2.2%
REGISTRY FINANCE PTY LTD 5.739% JUN-34 2.2%
SYDNEY AIRPORT FINANCE 5.9% APR-34 2.1%
AURIZON NETWORK PTY LTD 2.9% SEP-30 2.1%
AURIZON NETWORK PTY LTD 6.1% SEP-31 2.1%
AUSTRALIA PACIFIC AIRPOR 3.763% NOV-31 2.1%
PERTH AIRPORT PTY LTD 5.6% MAR-31 2.0%
WESTCONNEX FINANCE CO PT 3.15% MAR-31 2.0%
ARC INFRASTRUCTURE WA 6.018% MAY-31 2.0%
NSW ELECTRICITY NETWORKS 2.543% SEP-30 2.0%

* As at 12 June 2024.

As described in the PDS, the Fund may either invest directly and/or via an underlying exchange traded fund (ETF). The information above shows either the direct holdings of the Fund or the holdings of the underlying ETF on a look through basis which closely approximates the Fund’s percentage exposure to those investments.

Index sector exposure

Real Estate
32.0%
Industrials
26.0%
Utilities
13.9%
Communications
8.0%
Consumer Staples
6.0%
Consumer Discretionary
8.0%
Banks
4.0%
Funds & Trusts
2.0%

* As of 31 May 2024

Performance

Fund returns after fees (%)

  Fund Index
1 month 1.21% 1.24%
3 months 1.06% 1.10%
6 months 6.04% 6.21%
1 year - 7.15%
3 year p.a. - -0.75%
5 year p.a. - 1.66%
10 year p.a. - -
Since inception 8.70% 8.74%
Inception date 4-Jul-23 -

* As at 31 May 2024.
Past performance is not an indicator of future performance. Returns are calculated in Australian dollars using net asset value per unit at the start and end of the specified period and do not reflect brokerage or the bid ask spread that investors incur when buying and selling units on the ASX. Returns are after fund management costs, assume reinvestment of any distributions and do not take into account tax paid as an investor in the Fund. Returns for periods longer than one year are annualised. Current performance may be higher or lower than the performance shown.

Chart

Past performance is not indicative of future performance. Please refer to "Fund returns after fees" for additional information regarding performance/return information.

Distributions

Recent distributions

Ex Date Record Date Payment Date Distribution Unit ($) Annual Distribution Return (%) (1)
20-Feb-24 19-Feb-24 23-Feb-24 $0.00445 -
17-Jan-24 18-Jan-24 23-Jan-24 $0.00411 -
19-Dec-23 18-Dec-23 27-Dec-23 $0.00381 -
17-Nov-23 16-Nov-23 23-Nov-23 $0.00315 -
18-Oct-23 17-Oct-23 24-Oct-23 $0.00352 -
19-Sep-23 18-Sep-23 22-Sep-23 $0.00371 -
17-Aug-23 16-Aug-23 23-Aug-23 $0.00157 -

1 This is the annual distribution return to the end of the relevant distribution date. The distribution return reflects the contribution to total investment return made by the Fund's distributions. Distribution return is calculated as the total return less the growth return. Total return is calculated as the percentage change in a continuing investor's interest in the Fund assuming reinvestment of all distributions back into the Fund (and no other application or withdrawal), net of ongoing fees. Growth return is the Fund's return excluding distributions, net of ongoing fees. Past performance is not indicative of future performance.