BetaShares launches hybrids fund
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).
AUTHOR
Oksana Patron
Recommended for you
Some 42 per cent of CEOs say they are actively reinventing their business to stay relevant in the next decade, with consumer services the most common choice for asset and wealth managers.
Former Ophir Asset Management chief executive, George Chirakis, has joined private equity manager Scarcity Partners, while the asset manager has appointed a replacement from Macquarie.
Australian Unity has appointed a fund manager for its Healthcare Property Trust, joining from Centuria Healthcare, as it restructures the product with a series of senior appointments.
Financial advisers nervous about the liquidity of private markets funds for their retail clients are the target of fund managers launching semi-liquid products which offer greater flexibility and redemptions.
