BetaShares launches hybrids fund

BetaShares/ETF/hybrids/

21 November 2017
| By Oksana Patron |
image
image
expand image

BetaShares has announced a launch of its first active exchange traded fund (ETF) that invests in hybrids, the BetaShares Active Australian Hybrids Fund (HBRD).

The fund’s strategy was designed to manage risks associated with hybrids during particular market conditions, the company said.

Also, it would aim to help investors access a diversified portfolio of hybrids while seeking to minimise risks related to owning hybrids directly.

The fund would pay monthly distributions and investors would be entitled to franking credits that the fund’s investment portfolio would generate.

The fund would be managed by Coolabah Capital Institutional Investments, an Australian manager of credit securities, with an expertise in investing in hybrids.

BetaShares’ managing director, Alex Vynokur said: “We are bringing to the market a solution that provides investors with exposure to a portfolio of hybrids while also actively managing risk”

“Our discussions with investors prior to launching the fund indicated that many would appreciate having this complexity managed for them by an expert manager.

“We believe that liquidity of investments is very important for investors to consider.

“Existing investors in direct hybrid securities are encouraged to compare their holdings with the liquidity of HBRD on the ASX.”

According to BetaShares, the domestic hybrid market was worth of around $60 billion, with around $50 billion worth of hybrids listed on the Australian Securities Exchange (ASX).

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 4 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 4 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 2 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND