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BetaShares Geared U.S. Equity Fund - Currency Hedged (hedge fund) (GGUS)

Objective

The Geared U.S. Equity Fund provides investors with a simple way to obtain a cost-effective geared exposure to the returns of the U.S. share market, hedged to Australian dollars.

Geared U.S. Equity Fund - Currency Hedged - Overview

About

The Geared U.S. Equity Fund provides investors with a simple way to obtain a cost-effective geared exposure to the returns of the U.S. share market

  • 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 will combine funds received from investors with borrowed funds, and invest the proceeds in a portfolio that provides exposure to a broadly diversified share portfolio consisting of the largest 500 shares listed in the US 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%
  • Advantages

  • US equities exposure – obtain capital efficient exposure to a diversified portfolio of large-capitalisation US equities
  • Cost Effective - management fee lower than most geared fund alternatives
  • No Margin Calls – gearing obligations met by the Fund with no further recourse to the investor
  • Wholesale Funding - Fund uses its 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 – exposure to a broadly diversified portfolio of shares representative of the US equity market
  • Reduce currency risk - US dollar exposure is hedged substantially back to the Australian dollar
  • No W-8 BEN forms and no US estate tax implications for investors - simplified tax administration, unlike cross-listed alternatives
  • How to Invest

    The Geared U.S. Equity Fund is a fund whose units can be bought and sold on the ASX

  • Buy or sell throughout the day like any share on the ASX
  • No minimum investment
  • Pricing Information - 26-Sep-2016

    Current Price NAV
    Last Trade* $10.17 NAV/Unit* $10.29
    % Change (prev day) 0.20% *As of close of previous trading day
    Bid* (delayed)      
    Offer* (delayed)      
    *Data is delayed by at least 20 minutes.

    Profile - 26-Sep-2016

    Net Assets* ($A) $4,117,655
    Units Outstanding* (#) 400,000
    Mgmt Fees** (% p.a.) 0.74%
    Distribution Frequency Annual
    Issuer BetaShares Capital Ltd
    Fund Administrator FundBPO
    Custodian Deutsche Bank AG
    Registry Link Market Services
    Auditor KPMG
    * As of close of previous trading day
    **Costs expressed as a percentage of gross asset value of the Fund. Certain additional costs apply. Please refer to PDS.

    Trading Information

    Exchange ASX
    ASX Code GGUS
    Bloomberg Code GGUS AU
    IRESS Code GGUS.AXW
    Currency AUD
    Trading Hours 10.00-16.00 (AEST)
    iNAV IRESS Code N/A
    Authorised Participants 2
    Market Makers Deutsche Securities, Susquehanna Pacific
    Marginable Check with your broker
    Short Selling Check with your broker
    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* (%) 55.9%
    Current Gearing Multiple** (x) 2.27
    *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 U.S. share market (as measured by the S&P 500 index). For example, if the Fund's gearing multiple is 2.1x, and the S&P 500 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 - 26-Sep-2016

    Name %
    1 Apple Inc. 3.1 %
    2 Microsoft Corp 2.3 %
    3 Amazon Com Inc 1.9 %
    4 Berkshire Hathaway Inc 1.8 %
    5 Exxon Mobil Corp 1.8 %
    6 Johnson & Johnson 1.7 %
    7 Facebook Inc 1.5 %
    8 Alphabet Inc 1.4 %
    9 General Electric Co 1.4 %
    10 AT&T Inc 1.3 %
    * As of close of previous trading day

    Sector Allocation

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    Information Technology
    20.8%
    Financials
    15.7%
    Health Care
    14.3%
    Consumer Discretionary
    12.9%
    Industrials
    10.1%
    Consumer Staples
    10.4%
    Energy
    6.6%
    Materials
    3.4%
    Utilities
    2.8%
    Telecommunication Services
    2.8%
    * As of 31 March 2016

    Fund Returns After Fees (%)

    1 month 3 month 6 month 1 year 3 year p.a 5 year p.a Since Inception (p.a.) Inception Date
    Fund 0.03 % 8.33 % 29.85 % 24.25 % - - 3.17 % 17-Aug-15
    S&P 500 Index (TR, US$) 0.06 % 3.93 % 13.22 % 11.81 % - - 4.74 % -
    * As at 31 August 2016
    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.

    Yield Information

    Distribution Frequency Annual
    Yield

    Recent Distributions

    Ex Date Record Date Payment Date Distribution
    Unit ($)
    Annual Distribution Return (%) (1)
    01-Jul-2016 04-Jul-2016 18-Jul-2016 $0.09848 -
    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.
    Factsheet
    Introduction to BetaShares Geared Fund Series
    Product Disclosure Statement
    Number of Outstanding Units and Other Information – August 2016
    Annual Hedge Fund Report – 31 December 2015
    link icon Portfolio Holdings

    iNAV is an indicative estimate only, may not reflect the true value of a unit and may be materially out of date at the time viewed. It should not be relied on in making any investment decision. See Terms and Conditions for more information.

    An investment in units of any BetaShares Fund is subject to risk, which may include possible delays in repayment and loss of income and capital invested. The value of units may go down as well as up. Past performance is not an indication of future performance. Before making an investment decision you should consider the relevant PDS (available on this website) with a financial advisor to determine if it is appropriate for your circumstances. Commodity ETFs: The index which each BetaShares commodity ETF aims to track is based on the price of futures contracts.  Investing in commodity futures is not the same as investing in the “spot price” of a given commodity. The ETFs do not aim to, and should not be expected to, provide the same return as the performance of the spot price of the relevant commodities. The performance of ETFs that are linked to commodity futures may be materially different to the spot price for the commodity itself. Also, differences in trading hours of the underlying futures markets and their corresponding BetaShares ETFs may at certain times cause the difference between bid prices and offer prices on the ASX to widen significantly. Investors should carefully consider this potential impact before trading. Please refer to the "Risks" section of the PDS for more information about these and other risk factors. AMP Capital exchange traded managed funds: BetaShares Capital Ltd (ACN 139 566 868, AFSL 341181 ("BetaShares") is the responsible entity and the issuer of units in the AMP CAPITAL GLOBAL PROPERTY SECURITIES FUND (UNHEDGED) (MANAGED FUND), AMP CAPITAL GLOBAL INFRASTRUCTURE SECURITIES FUND (UNHEDGED) (MANAGED FUND) and AMP CAPITAL DYNAMIC MARKETS FUND (HEDGE FUND). AMP Capital Investors Ltd (ABN 59 001 777 591, AFSL 232497) (“AMP Capital”) is the investment manager of the Funds and has been appointed by the responsible entity to provide investment management and associated services in respect of the Funds. Neither BetaShares, AMP Capital, nor any other company in the AMP Group guarantees the repayment of capital or the performance of any product or any particular rate of return referred to in this information.

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