Aims to provide diversification benefits, defensive qualities and regular monthly income via exposure to a portfolio of predominantly Australian government bonds
- Assets are invested primarily in a portfolio of relatively ‘long-duration’ high-quality Australian government bonds
- Eligible bonds must be AUD denominated fixed-rate bonds and have a term to maturity of between 7 to 12 years, along with minimum issuance size requirements
- 75% of total portfolio weight allocated to bonds issued by the Australian federal and state governments
- 25% of total portfolio weight allocated to bonds issued by supranational organisations, Australian and foreign government agencies and government-related banks (developed countries only), and non-Australian government and regional authorities (developed countries only).
- Defensive characteristics – government bonds have tended to rise in value in periods of equity market weakness, providing diversification benefits
- Superior credit quality – Fund offers fixed-income exposure of superior credit quality in the Australian bond market, relative to corporate bonds
- Regular, monthly income – Fund’s focus on longer duration bonds means income potential is typically higher than other Australian government bond funds that do not have this focus
- Low cost – management costs of only 0.22% p.a.
- Access – simple way to access a diversified portfolio of Australian government bonds
- Liquidity – available to trade on the ASX like any share, capital not locked up unlike term deposits
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