Global gov bond ETF launched by BetaShares
BetaShares has launched its latest fixed income exchange traded fund (ETF), focusing on global government bonds.
The BetaShares Global Government Bond 20+ Year ETF – Currency Hedged would give investors exposure to long-dated sovereign bonds.
The bonds would be high credit quality with 40% rated AAA and an average portfolio rating in the fund of AA. To be eligible, the bonds must have a remaining term to maturity of more than 20 years which further enhanced the fund’s defensiveness and diversification.
Government bonds were particularly relevant given the quantitative easing programmes embarked on by central banks as a method of supporting the economy during the COVID-19 pandemic.
BetaShares’ chief executive, Alex Vynokur, said: “We are excited to be able to give Australian investors the chance to invest in a diversified portfolio of high-quality global sovereign bonds. In previous sharemarket downturns, government bonds historically have tended to rise in value.
“Our new fund makes the process of investing in global government bonds simple and cost-effective. It offers a robust option for gaining exposure to an important portfolio building block for investors seeking regular income, as well as a high-quality tool to defend portfolios.”
The ETF intended to pay quarterly income and had managements costs of 0.22% per annum.
AUTHOR
Laura Dew
Recommended for you
In the latest Meet the Manager profile, Money Management speaks with Michael Skinner, founder and managing director at Blackwattle Investment Partners.
Perpetual has seen AUM rise 6 per cent in the last quarter but the departure of a longstanding JOHCM fund manager led to outflows of $2.2 billion from his strategy.
Global fixed income fund Bentham Global Opportunities has been added to several major platforms, enabling it to be accessed more easily by financial advisers.
Following yesterday’s news about First Sentier Investors closing four investment teams, a second global asset manager has announced it is closing its only dedicated Australian fund.
