Australian Major Bank Subordinated Debt ETF
Overview
Fund Objective
BSUB aims to track the performance of an index (before fees and expenses) that provides exposure to a portfolio of floating rate subordinated bonds issued by the four major Australian banks.
Fund Strategy
The Fund’s strategy is to invest in Tier-2 floating rate subordinated bonds denominated in Australian dollars, issued by the ‘big 4’ Australian banks. Eligible bonds must have amounts outstanding of at least $500 million and a remaining maximum term to maturity of 10 years.
The Fund can hold a maximum of 16 securities. If there are 10 or more securities, market value weighting is applied with an issuer cap of 35% per issuer. If there are fewer than 10 securities, equal weighting is applied.
Benefits
Attractive income, paid monthly
Subordinated debt offers the opportunity for attractive income typically above that of senior bank floating rate notes.
High quality issuers
The “big 4” Australian banks (CBA, ANZ, NAB and Westpac) are generally considered some of the best capitalised major financial institutions in the world. BSUB allows investors to obtain exposure to investment grade subordinated bonds from all four banks in a single trade.
Diversification benefits, protection against rising interest rates
Historically, major bank tier 2 floating rate bonds have generally exhibited low correlation to equities and a high degree of capital stability, providing potential portfolio diversification benefits. In addition, the income paid by floating rate bonds varies in line with a benchmark interest rate. If the benchmark rate increases, so too does the income you receive, and vice versa.
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Key facts
Profile
| Units outstanding* (#) | 7,063,718 |
|---|---|
| Management fee and cost** (p.a.) | 0.29% |
| Distribution frequency | Monthly |
| Distribution reinvestment plan (DRP) | Full or partial participation available |
* As at 16 January 2025
**Certain additional costs apply. Please refer to PDS.
Pricing information
| Current price | |
|---|---|
| Last trade* | |
| % Change (prev day) | |
| Bid (delayed) | |
| Offer (delayed) | |
| NAV | * As at 16 January 2025 |
| NAV/Unit* | $25.45 |
| * Data is delayed by at least 20 minutes. | |
Past performance is not indicative of future performance. Please refer to "Fund returns after fees" for additional information regarding performance/return information.
Trading information
| ASX code | BSUB |
|---|---|
| Bloomberg code | BSUB AU |
| IRESS code | BSUB.AXW |
| Market makers | Susquehanna Pacific |
Index information
| Index | Solactive Australian Major Bank Subordinated FRN Index |
|---|---|
| Index provider | Solactive AG |
| Index ticker | N/A |
| Bloomberg index ticker | SOLAMBBI Index |
Performance
Fund returns after fees (%)
| Fund | Index | |
|---|---|---|
| 1 month | 0.65% | 0.69% |
| 3 months | 1.82% | 1.90% |
| 6 months | 3.49% | 3.60% |
| 1 year | - | 7.53% |
| 3 year p.a. | - | 5.18% |
| 5 year p.a. | - | 4.19% |
| 10 year p.a. | - | - |
| Since inception (p.a.) | 4.95% | 5.00% |
| Inception date | 6-May-24 | - |
Past performance is not an indicator of future performance. Returns are calculated in Australian dollars using net asset value per unit at the start and end of the specified period and do not reflect brokerage or the bid ask spread that investors incur when buying and selling units on the ASX. Returns are after fund management costs, assume reinvestment of any distributions and do not take into account tax paid as an investor in the Fund. Returns for periods longer than one year are annualised. Current performance may be higher or lower than the performance shown.
Portfolio characteristics
| Running yield (% p.a.) | 6.01 |
|---|---|
| All-in yield (% p.a.) | 5.44 |
| Estimated yield to worst (% p.a.) | 5.07 |
| Discount margin (bps) | 111.37 |
| Average time to call (yrs) | 2.82 |
| Modified duration (yrs) | 0.12 |
| Spread duration (yrs) | 2.56 |
| Average credit rating | A- |
* As at 17 January 2025
Holdings and allocation
Portfolio holdings
| Name | Weight (%) |
|---|---|
| COMMONWEALTH BANK OF AUSTRALIA 5.74% AUG-31 | 11.8 |
| NATIONAL AUSTRALIA BANK LTD 6.4463% NOV-31 | 10.4 |
| AUD - AUSTRALIA DOLLAR | 9.0 |
| AUSTRALIA & NEW ZEALAND BANKING GROUP LTD 6.2912% JAN-34 | 9.0 |
| WESTPAC BANKING CORP 6.7513% JUN-33 | 8.3 |
| WESTPAC BANKING CORP 6.0228% JUL-34 | 8.0 |
| NATIONAL AUSTRALIA BANK LTD 6.3631% FEB-34 | 6.4 |
| AUSTRALIA & NEW ZEALAND BANKING GROUP LTD 5.86% JAN-35 | 6.3 |
| COMMONWEALTH BANK OF AUSTRALIA 7.1131% NOV-32 | 6.0 |
| WESTPAC BANKING CORP 5.9411% JAN-31 | 5.6 |
Sector allocation
| Australian Subordinated Bank FRNs | 100.0% |
|---|
* As of 31 December 2024
Distributions
Frequency and yield
| Distribution frequency | Monthly |
|---|
*As at 31 December 2024. Yield is calculated by summing the prior 12-month per unit distributions divided by the closing NAV per unit at the end of the relevant period. Yield will vary and may be lower at time of investment. Past performance is not an indicator of future performance.
You can elect DRP by logging into Link’s Investor Centre. Once you are logged in, please proceed to the 'Payments and Tax' tab and select 'Reinvestment Plans'.
Recent distributions
| Ex Date | Record Date | Payment Date | Distribution Unit ($) | Annual Distribution Return (%) (1) |
|---|---|---|---|---|
| 2-Jan-25 | 3-Jan-25 | 17-Jan-25 | $0.119903 | - |
| 2-Dec-24 | 3-Dec-24 | 17-Dec-24 | $0.108728 | - |
| 1-Nov-24 | 4-Nov-24 | 18-Nov-24 | $0.11616 | - |
| 1-Oct-24 | 2-Oct-24 | 16-Oct-24 | $0.115943 | - |
| 2-Sep-24 | 3-Sep-24 | 17-Sep-24 | $0.111927 | - |
| 1-Aug-24 | 2-Aug-24 | 16-Aug-24 | $0.128579 | - |
| 1-Jul-24 | 2-Jul-24 | 16-Jul-24 | $0.105625 | - |
1 This is the annual distribution return to the end of the relevant distribution date. The distribution return reflects the contribution to total investment return made by the Fund's distributions. Distribution return is calculated as the total return less the growth return. Total return is calculated as the percentage change in a continuing investor's interest in the Fund assuming reinvestment of all distributions back into the Fund (and no other application or withdrawal), net of ongoing fees. Growth return is the Fund's return excluding distributions, net of ongoing fees. Past performance is not indicative of future performance
Announcements
ASX Announcements: BSUB
Payment notice information
NRWT & fund payments
| Document | Date |
|---|---|
| 2024-11 | |
| 2024-10 | |
| 2024-09 | |
| 2024-08 | |
| 2024-07 | |
| 2024-06 | |
| 2024-12 |