Geared Long U.S. Treasury Bond Fund – Currency Hedged (hedge fund)
Overview
Fund objective
Betashares Geared Long U.S. Treasury Bond Fund – Currency Hedged (hedge fund) offers geared exposure to the returns of 10-year US Treasury Bonds, hedged for currency exposure.
Fund strategy
The Fund invests its assets in cash and cash equivalents, and buys 10-year US Treasury Note Futures. The futures contracts reflect the returns of an underlying US Treasury Bond with 10 years to maturity.
A 1% rise in the value of the bond on a given day can generally be expected to deliver a 2.5% to 3.0% increase in the value of the Fund (and a corresponding decrease in the value of the Fund if the value of the bond falls by 1%).
The Fund’s portfolio exposure is actively monitored and adjusted to stay within a 2.5x to 3.0x range on any given day. The Fund’s returns will not necessarily be in the range 2.5x to 3.0x over periods longer than a day, due to the effects of rebalancing to maintain the Fund’s daily target exposure range and compounding of investment returns over time.
The Fund’s returns over periods longer than one day may differ in amount and possibly direction from the daily target return range. This effect on returns over time can be expected to be more pronounced the more volatile the US Treasury Bond market, and the longer an investor’s holding period.
Investors should actively monitor their investment as frequently as daily to ensure it continues to meet their investment objectives.
Gearing magnifies gains and losses and may not be a suitable strategy for all investors. An investment in the Fund is very high risk in nature and should only be made by informed investors who fully understand the risks of gearing.
Benefits
Adjust your interest rate risk
You can use GGFD to make your existing fixed income portfolio more sensitive to movements in interest rates i.e. increase your interest rate risk.
Leveraged exposure
GGFD gives you the opportunity to make magnified gains when the prices of 10-year US Treasury Bonds rise (bond yields fall) on a given day, as well as the potential for magnified losses when the prices of those bonds fall (bond yields rise).
Simple to access
GGFD provides a convenient, capital-efficient way to gain geared exposure to 10-year US Treasury Bonds.
Invest in GGFD with Betashares Direct
Key facts
Profile
| Units outstanding* (#) | 125,000 |
|---|---|
| Management fee and cost** (p.a.) | 0.99% |
| Distribution frequency | Annual |
| Distribution reinvestment plan (DRP) | Full or partial participation available |
* As at 17 December 2024
**Certain additional costs apply. Please refer to PDS.
Pricing information
| Current price | |
|---|---|
| Last trade* | |
| % Change (prev day) | |
| Bid (delayed) | |
| Offer (delayed) | |
| NAV | * As at 17 December 2024 |
| NAV/Unit* | $19.10 |
| * 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 | GGFD |
|---|---|
| Market makers | Susquehanna Pacific |
Index information
| Index | N/A |
|---|---|
| Index provider | N/A |
| Index ticker | N/A |
| Bloomberg index ticker | N/A |
Composition
Portfolio composition
| 1 Cash & Cash Equivalents* | 100% |
|---|
* The Fund's Portfolio may comprise cash, cash equivalents and a long futures position in CME Ultra 10-year US Treasury Note Futures. For full details see our resources section.
Information
Portfolio exposure
| Exposure range | 250-300% |
|---|---|
| Current portfolio exposure* (%) | 282.4% |
| Current gearing multiple** (x) | 2.82 |
| Current effective duration*** (yrs) | 22.06 |
* As at 19 December 2024. Calculated as Fund borrowings divided by Fund total assets. Current Gearing Ratio is as at start of the above date and can be expected to vary throughout the day.
Calculated as the Fund's exposure to 10-year US Treasury Bonds as a percentage of the Fund's net asset value.
** Represents the Fund's approximate exposure, for the above date, to movements in the prices of 10-year US Treasury Bonds, as measured by the futures contracts held in the Fund. For example, if the Fund's gearing multiple is 2.75x and the prices of 10-year US Treasury Bonds go up 1% that day, the Fund would be expected to go up approximately 2.75% that day, before fees and expenses. The Fund is actively managed and the portfolio exposure will change on a daily basis, affecting returns over time.
*** Represents contract modified duration (a measure of the sensitivity of the futures contract value to a change in interest rates) multiplied by the current gearing multiple.
Performance
Fund returns after fees (%)
| Fund | Index | |
|---|---|---|
| 1 month | 2.05% | 0.92% |
| 3 months | -7.02% | -2.25% |
| 6 months | 5.81% | 2.47% |
| 1 year | - | - |
| 3 year p.a. | - | - |
| 5 year p.a. | - | - |
| 10 year p.a. | - | - |
| Since inception (p.a.) | -0.08% | 0.66% |
| Inception date | 4-Dec-23 | - |
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.
Sector allocation
| Long US Govt Bonds ~250% to 300% | 100.0% |
|---|
* As of 29 November 2024
Distributions
Frequency and yield
| Distribution frequency | Annual |
|---|
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) |
|---|---|---|---|---|
| - | - | - | - | - |