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OVERVIEW

About

The Geared Fund provides investors with a simple way to obtain a cost-effective geared exposure to the returns of the Australian sharemarket

  • The Fund is ‘internally geared’, meaning all gearing obligations are met by the Fund, such that there are no possibilities of margin calls for investors
  • The Fund combines funds received from investors with borrowed funds, and invests the proceeds in a broadly diversified share portfolio consisting of the largest 200 securities on the ASX by market capitalisation
  • The Fund’s gearing ratio (total amount borrowed expressed as a percentage of the total assets of the Fund) will be managed between 50-65%

Gearing magnifies gains and losses and may not be a suitable strategy for all investors. 

Advantages

  • Access – ability to obtain magnified returns to the Australian sharemarket as simply as buying any share
  • Convenience – avoid the complexity associated with margin loans or CFDs
  • Cost effective – management fee lower than most geared fund alternatives
  • No margin calls for investors – gearing obligations met by the Fund with no further recourse to the investor
  • Lower cost of borrowing – Fund uses capacity as wholesale investor to borrow at significantly lower interest rates than those available directly to individual investors
  • SMSF eligible – a means to access gearing in SMSFs/super as a component of a diversified portfolio, depending on investor’s tolerance for risk
  • Diversification – broadly diversified portfolio of shares representative of the Australian sharemarket
  • Liquidity – available to trade on ASX like any share
  • Transparency – gearing ratio and underlying share portfolio available on website and updated daily

How to Invest

  • You can buy or sell units just like you’d buy or sell any share on the ASX
  • Fund requires no minimum investment

KEY FACTS

Pricing Information 25 July 2017

Current Price
Last Trade* $20.54
% Change (prev day) -1.53%
Bid (delayed) $20.42
Offer (delayed) $20.76
ASX iNav Code YGEA
*Data is delayed by at least 20 minutes.
Download NAV history
NAV
NAV/Unit * $20.56
* As at 24 July 2017

Profile

Net Assets* ($A) $61,162,169
Units Outstanding* (#) 2,974,853
Mgmt Costs** (% p.a.) 0.80%
Distribution Frequency Semi-annual
Distribution Reinvestment Plan (DRP) Full participation available
Issuer BetaShares Capital Ltd
Fund Administrator FundBPO
Custodian Deutsche Bank AG
Registry Link Market Services
Auditor KPMG
* As at 24 July 2017
**Costs expressed as a percentage of gross asset value of the Fund. Certain additional costs apply. Please refer to PDS.

Trading Information

ASX Code GEAR
Bloomberg Code GEAR AU
IRESS Code GEAR.AXW
Trading Hours 10.00-16.00 (AEST)
iNAV IRESS Code GEARINAV.ETF
Market Makers Deutsche Securities, Susquehanna Pacific
SMSF Eligible Yes

Index Information

Index N/A
Index Provider N/A
Index Ticker N/A
Bloomberg Index Ticker N/A

Gearing

Gearing Range 50-65%
Current Gearing Ratio * (%) 55.8%
Current Gearing Multiple** (x) 2.26
* As at 25 July 2017. 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.
**Represents the Fund's approximate exposure, for the above date, to movements in the Australian share market (as measured by the S&P/ASX 200 index). For example, if the Fund's gearing multiple is 2.1x, and the S&P/ASX 200 index goes up 1% that day, the Fund would be expected to go up approximately 2.1% that day. The Fund is actively managed and the gearing multiple will change on a daily basis, affecting returns over time.

Top Exposures

Name %
Commonwealth Bank of Australia 9.6 %
Westpac Banking Corp 7.3 %
Australia & New Zealand Banking Group Ltd 5.8 %
National Australia Bank Ltd 5.4 %
BHP Billiton Ltd 5.2 %
CSL Ltd. 3.8 %
Telstra Corp Ltd 3.3 %
Wesfarmers Ltd 3.0 %
Woolworths LTD 2.3 %
Macquarie Group Ltd 1.9 %
* As at 24 July 2017

Sector Allocation

Financials
37.4%
Materials
16.0%
Real Estate
8.1%
Healthcare
7.7%
Industrials
7.3%
Consumer Staples
7.0%
Consumer Discretionary
5.0%
Energy
4.0%
Telecommunication Services
3.8%
Utilities
2.3%
Information Technology
1.4%
* As of 30 June 2017

PERFORMANCE

Fund Returns After Fees (%)

  Fund Index
1 month -0.01% 0.17%
3 months -4.53% -1.58%
6 months 4.62% 3.16%
1 year 26.72% 14.09%
3 year p.a 7.76% 6.63%
5 year p.a - -
Since inception (p.a) 6.31% 5.99%
Inception date 30-Apr-14 -
* As at 30 June 2017

Chart

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.

DISTRIBUTIONS

Yield Information

Distribution Frequency Semi-Annual
12 Mth Distribution Yield* (%) 6.1%
12 Mth Gross Distribution Yield* (%) 9.2%
Franking Level 118.2%
*As at 30 June 2017. Yield figures are calculated by summing the prior 12 month net and gross fund per unit distributions divided by the fund closing NAV per unit. Franking level is total franking level over the last 12 months. Past performance is not an indicator of future performance.

Recent Distributions

Ex Date Record Date Payment Date Distribution Unit ($) Annual Distribution Return (%) (1)
3-Jul-17 4-Jul-17 18-Jul-17 $0.3979 7.76%
3-Jan-17 4-Jan-17 18-Jan-17 $0.96842 7.51%
1-Jul-16 4-Jul-16 18-Jul-16 $0.33332 4.53%
4-Jan-16 6-Jan-16 19-Jan-16 $0.61149 4.66%
1-Jul-15 3-Jul-15 20-Jul-15 $0.3354 3.87%
2-Jan-15 6-Jan-15 19-Jan-15 $0.38738 -
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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. It is calculated as the difference between total Fund return and NAV return. NAV return is the change in the Fund's NAV price. Total return is the NAV return plus reinvestment of all distributions back to the Fund. Past performance not indicative of future performance.

ANNOUNCEMENTS

ASX Announcements: GEAR

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RESOURCES

Factsheet - GEAR
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Product Brochure - GEAR
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Introduction to BetaShares Gear Fund Series
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Product Disclosure Statement - GEAR
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PDS Updates - GEAR
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Portfolio Holdings
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NRWT and Fund Payment Notice information - June 2017 distributions
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Non-Resident Withholding tax information - June 2016 Distribution
Download
Supplementary Product Disclosure Statement – November 2016
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Annual Hedge Fund Report 31 Dec 2016
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Annual Report - June 2016
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31 December 2016 Interim Financial Report - GEAR and BBUS
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LEARN MORE ABOUT GEAR

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