BetaShares Active Australian Hybrids Fund
BetaShares has launched the BetaShares Active Australian Hybrids Fund (ASX: HBRD) (the Fund) to provide investors with access to a diversified portfolio of bank and other investment hybrids while seeking to minimise potential downside risk associated with direct ownership.
According to BetaShares, the Fund is the first ETF to offer exposure to hybrids, and will be managed by independent active-fixed income manager, Coolabah Capital Institutional Investments.
Commenting on the launch, BetaShares managing director, Alex Vynokur, said: "As an asset class, hybrids offered investors attractive tax-efficient income, and generally higher levels of capital stability and lower levels of volatility compared to Australian shares."
He added: “But while Australian investors have for many years been attracted to hybrids for these attributes, they are complex instruments and require vigilant oversight and risk management. We are bringing to the market a solution that provides investors with exposure to a portfolio of hybrids while also actively managing risk."
The Fund will pay monthly distributions and investors will be entitled to franking credits generated by the Fund’s investment portfolio.