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
Investment solution provider Channel Capital has appointed James Archer as its latest distribution director, joining from Pinnacle Investment Management.
Bennelong Funds Management has signed a memorandum of understanding with US private credit manager Monroe Capital to distribute its products in Australia.
Global equity manager Talaria Capital has appointed a Sydney-based sales director as it grows its distribution presence across Australia.
Global private markets firm Partners Group has launched an evergreen fund to provide Australian advisers with access to its cross-sector royalties strategy.
