BetaShares Australian Investment Grade Corporate Bond ETF

OVERVIEW

About

The Fund aims to track the performance of an index (before fees and expenses) that provides exposure to a portfolio of investment grade fixed-rate Australian corporate bonds. The Fund’s strategy will preference securities offering superior expected excess returns over Australian government bonds.

Aims to provide attractive income distributions, paid monthly, combined with compelling portfolio diversification benefits
By selecting bonds based upon expected returns rather than debt outstanding, CRED’s index methodology seeks to avoid shortcomings of traditional debt-weighted indices and provide relatively higher returns
The portfolio is comprised of senior, fixed rate, investment grade securities denominated in Australian dollars, issued by companies listed on the ASX or other eligible entities
Eligible bonds must have amounts outstanding of at least $250m and a term to maturity of between 5.25 to 10.25 years
Up to 35 bonds are selected from eligible universe, with each bond assigned an equal weight as at each rebalance date
No single issuer shall have a weight in excess of 7% at each re-balance date

Advantages

Regular, attractive income – income paid monthly, and expected to exceed income paid on cash, term deposits, government and composite bond exposures
Diversification & defence – investment grade fixed-rate Australian corporate bonds have historically tended to rise in value when Australian shares have fallen, providing diversification benefits and defensive characteristics to portfolios
Low cost – management costs of only 0.25% p.a.
Ranking – underlying portfolio comprises senior bonds, which rank above shareholders in the event of issuer default
Access – simple way to access a portfolio of Australian investment grade corporate bonds, which are inaccessible to most investors directly
Transparent – portfolio holdings, value of Fund’s assets, yield information and net asset value per unit available daily on our website
Liquidity – available to trade on the ASX like any share

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 19 October 2019

Current Price
Last Trade*	$27.73
% Change (prev day)	-0.07%
Bid (delayed)	$27.69
Offer (delayed)	$28.00

*Data is delayed by at least 20 minutes.

Download NAV history

NAV
NAV/Unit *	$27.68

* As at 17 October 2019

Profile

Net Assets* ($A)	$338,915,083
Units Outstanding* (#)	12,243,388
Mgmt Costs** (% p.a.)	0.25%
Distribution Frequency	Monthly
Distribution Reinvestment Plan (DRP)	Full or partial participation available
Issuer	BetaShares Capital Ltd
Fund Administrator	RBC Investor Services
Custodian	RBC Investor Services
Registry	Link Market Services
Auditor	KPMG

* As at 17 October 2019

* As of close of previous day
**Certain additional costs apply. Please refer to PDS.

Trading Information

ASX Code	CRED
Bloomberg Code	CRED AU
IRESS Code	CRED.AXW
Trading Hours	10.00-16.00 (AEST)
Market Makers	Deutsche Securities
SMSF Eligible	Yes

Index Information

Index	Solactive Australian Investment Grade Corporate Bond Select TR Index
Index Provider	Solactive AG
Index Ticker	N/A
Bloomberg Index Ticker	SOLAUSIG Index

Index Methodology

Portfolio Characteristics

Running Yield (% p.a.) Average coupon (weighted by market value) of the bonds in the portfolio, divided by the current market price of the bonds. Provides an indication of expected current income from making an investment at market price. This value will vary over time as interest rates change.	3.61 % p.a.
Yield to Maturity (% p.a.) Total expected return from the bond portfolio, based on current bond prices and assuming no change in prevailing interest rates. This value will vary over time.	2.44 % p.a.
Average Maturity (yrs) Average (weighted by market value) length of time until the current bonds in the portfolio mature.	7.31 yrs
Modified Duration (yrs) A measure of the sensitivity of the portfolio’s value to a change in interest rates. For example, a Modified Duration of 0.15 years implies that a 1% rise in the reference interest rate will reduce the value of the portfolio by 0.15%.	6.20 yrs
Average Credit Rating Average credit rating for the bonds in the portfolio. Source: Bloomberg	A-

As at 18 October 2019

Portfolio Holdings

Top 10 All

Name	Weight (%)
VODAFONE GROUP PLC MTN 4.2000 13 Dec 2027	7.6
VERIZON COMMUNICATIONS MTN 4.500 17 Aug 27	7.4
AUSNET SERVICES HOLDINGS MTN 4.200 21 Aug 28	7.1
MET LIFE GLOB FUNDING I MTN 4.000 13 Jul 27	5.8
CALTEX AUSTRALIA LTD MTN 4.0000 17 Apr 2025	4.8
QNB FINANCE LTD MTN 4.9000 01 Feb 2028	3.8
EMIRATES NBD PJSC MTN 4.7500 09 Feb 2028	3.7
MACQUARIE GROUP LTD MTN 4.1500 15 Dec 2027	3.7
AT&T INC MTN 4.600 19 Sep 28	3.7
COMMONWEALTH BANK AUST MTN 4.2000 11 Jun 2026	3.6

Ticker	Name	Weight (%)	Asset Class	Sector	Country	Currency	Shares/Unit (#)	Market Value (AUD)	Notional Value (AUD)	Maturity Date	Coupon (%)	YTM (%)	Modified Duration
VOD 4.2 12/13/27 Corp	VODAFONE GROUP PLC MTN 4.2000 13 Dec 2027	7.6	Bonds	Communication Services	Britain	AUD	27,380,000	$30,375,098	$30,375,098	2027-12-13	4.2	2.6944	6.8647
VZ 4.5 08/17/27 Corp	VERIZON COMMUNICATIONS MTN 4.500 17 Aug 27	7.4	Bonds	Communication Services	United States	AUD	25,880,000	$29,779,081	$29,779,081	2027-08-17	4.5	2.3771	6.6464
ANVAU 4.2 08/21/28 Corp	AUSNET SERVICES HOLDINGS MTN 4.200 21 Aug 28	7.1	Bonds		Australia	AUD	24,480,000	$28,441,843	$28,441,843	2028-08-21	4.2	2.1755	7.4611
MET 4 07/13/27 Corp	MET LIFE GLOB FUNDING I MTN 4.000 13 Jul 27	5.8	Bonds		United States	AUD	21,062,000	$23,404,094	$23,404,094	2027-07-13	4.0	2.4132	6.6388
CTXAU 4 04/17/25 Corp	CALTEX AUSTRALIA LTD MTN 4.0000 17 Apr 2025	4.8	Bonds	Energy	Australia	AUD	17,680,000	$19,223,287	$19,223,287	2025-04-17	4.0	2.2973	4.7451
QNBK 4.9 02/01/28 Corp	QNB FINANCE LTD MTN 4.9000 01 Feb 2028	3.8	Bonds		Qatar	AUD	13,330,000	$15,237,656	$15,237,656	2028-02-01	4.9	2.9390	6.8432
EBIUH 4.75 02/09/28 Corp	EMIRATES NBD PJSC MTN 4.7500 09 Feb 2028	3.7	Bonds	Financials	United Arab Emirates	AUD	13,220,000	$15,016,598	$15,016,598	2028-02-09	4.75	2.8956	6.8961
MQGAU 4.15 12/15/27 Corp	MACQUARIE GROUP LTD MTN 4.1500 15 Dec 2027	3.7	Bonds	Financials	Australia	AUD	13,630,000	$14,963,423	$14,963,423	2027-12-15	4.15	2.7983	6.8713
T 4.6 09/19/28 Corp	AT&T INC MTN 4.600 19 Sep 28	3.7	Bonds	Communication Services	United States	AUD	12,850,000	$14,763,879	$14,763,879	2028-09-19	4.6	2.7071	7.4023
CBAAU 4.2 06/11/26 Corp	COMMONWEALTH BANK AUST MTN 4.2000 11 Jun 2026	3.6	Bonds	Financials	Australia	AUD	12,500,000	$14,300,000	$14,300,000	2026-06-11	4.2	1.8814	5.7899
BPCEGP 4.5 04/26/28 Corp	BPCE SA MTN 4.5000 26 Apr 2028	3.5	Bonds		France	AUD	12,710,000	$14,217,914	$14,217,914	2028-04-26	4.5	2.9159	7.1506
MCD 3.8 03/08/29 Corp	MCDONALD'S CORP MTN 3.800 08 Mar 29	3.5	Bonds	Consumer Discretionary	United States	AUD	12,730,000	$14,119,480	$14,119,480	2029-03-08	3.8	2.4878	7.7532
FCGNZ 4 11/02/27 Corp	FONTERRA COOPERATIVE GRP MTN 4.0000 02 Nov 2027	3.4	Bonds	Consumer Staples	New Zealand	AUD	12,200,000	$13,756,354	$13,756,354	2027-11-02	4.0	2.2543	6.8309
LLOYDS 4.25 11/22/27 Corp	LLOYDS BANKING GROUP PLC MTN 4.2500 22 Nov 2027	3.4	Bonds	Financials	Britain	AUD	12,570,000	$13,747,306	$13,747,306	2027-11-22	4.25	2.9396	6.7769
AAA AU	BETASHARES AUSTRALIAN HIGH INT	3.4	Equities	Financials	Australia	AUD	270,000	$13,527,000	$13,527,000
TLSAU 4 04/19/27 Corp	TELSTRA CORP LTD MTN 4.0000 19 Apr 2027	3.2	Bonds	Communication Services	Australia	AUD	11,490,000	$12,967,959	$12,967,959	2027-04-19	4.0	2.1329	6.5424
IPLAU 4.3 03/18/26 Corp	INCITEC PIVOT LTD MTN 4.300 18 Mar 26	3.1	Bonds	Materials	Australia	AUD	11,270,000	$12,261,873	$12,261,873	2026-03-18	4.3	2.7898	5.4148
BACR 4 06/26/29 Corp	BARCLAYS PLC MTN 4.000 26 Jun 29	2.9	Bonds	Financials	Britain	AUD	11,000,000	$11,825,110	$11,825,110	2029-06-26	4.0	3.0966	7.9664
ABIBB 4.1 09/06/27 Corp	FBG FINANCE PTY LTD MTN 4.1000 06 Sep 2027	2.8	Bonds		Belgium	AUD	10,110,000	$11,435,118	$11,435,118	2027-09-06	4.1	2.2723	6.7775
ARNDTN 4.5 05/14/25 Corp	AROUNDTOWN SA MTN 4.5000 14 May 2025	2.4	Bonds	Real Estate	Germany	AUD	8,720,000	$9,492,766	$9,492,766	2025-05-14	4.5	2.7697	4.8560
ANVAU 2.6 07/31/29 Corp	AUSNET SERVICES HOLDINGS MTN 2.600 31 Jul 29	2.2	Bonds		Australia	AUD	8,790,000	$8,942,419	$8,942,419	2029-07-31	2.6	2.3996	8.5539
LLOYDS 4 03/07/25 Corp	LLOYDS BANKING GROUP PLC MTN 4.0000 07 Mar 2025	2.2	Bonds	Financials	Britain	AUD	8,290,000	$8,848,083	$8,848,083	2025-03-07	4.0	2.6479	4.8240
VZ 4.05 02/17/25 Corp	VERIZON COMMUNICATIONS MTN 4.0500 17 Feb 2025	2.1	Bonds	Communication Services	United States	AUD	7,630,000	$8,420,697	$8,420,697	2025-02-17	4.05	1.9874	4.7894
BACAU 3.9 04/24/25 Corp	BRISBANE AIRPORT CORP LT MTN 3.9000 24 Apr 2025	1.6	Bonds		Australia	AUD	5,910,000	$6,472,750	$6,472,750	2025-04-24	3.9	2.0614	4.9840
RABOBK 4.25 05/12/26 Corp	RABOBANK NEDERLAND AU MTN 4.2500 12 May 2026	1.3	Bonds		Netherlands	AUD	4,640,000	$5,250,392	$5,250,392	2026-05-12	4.25	2.0925	5.6918
LOFINA 3.9 10/15/25 Corp	LONSDALE FINANCE PTY LTD MTN 3.900 15 Oct 25	1.3	Bonds		Australia	AUD	4,700,000	$5,148,662	$5,148,662	2025-10-15	3.9	2.1883	5.1641
NETFIN 3.5 12/06/24 Corp	NETWORK FINANCE CO PTY L MTN 3.500 06 Dec 24	1.2	Bonds		Australia	AUD	4,500,000	$4,815,720	$4,815,720	2024-12-06	3.5	2.0506	4.4878
AU3CB0266906 Corp	PACIFIC NATIONAL FINANCE MTN 3.700 24 Sep 29	1.1	Bonds		Australia	AUD	4,500,000	$4,590,855	$4,590,855	2029-09-24	3.7	3.4574	8.0740
AUD	AUD - Australia Dollar	1.0	Cash			AUD	4,035,866	$4,035,866	$4,035,866
WSOFIN 4.5 03/31/27 Corp	WSO FINANCE PTY LTD MTN 4.5000 31 Mar 2027	0.9	Bonds		Australia	AUD	3,000,000	$3,443,550	$3,443,550	2027-03-31	4.5	2.3256	6.2155
WSTP 4.125 06/04/26 Corp	WESTPAC BANKING CORP MTN 4.1250 04 Jun 2026	0.6	Bonds	Financials	Australia	AUD	2,100,000	$2,392,866	$2,392,866	2026-06-04	4.125	1.8740	5.7821
SUNAU 3.25 08/24/26 Corp	SUNCORP-METWAY LTD MTN 3.2500 24 Aug 2026	0.5	Bonds		Australia	AUD	1,800,000	$1,953,504	$1,953,504	2026-08-24	3.25	1.9136	6.1322
AIANZ 4.5 09/23/27 Corp	AUCKLAND INTL AIRPORT MTN 4.5000 23 Sep 2027	0.4	Bonds	Industrials	New Zealand	AUD	1,210,000	$1,420,334	$1,420,334	2027-09-23	4.5	2.1053	6.7660
RY 4.2 06/22/26 Corp	ROYAL BANK OF CANADA/SYD MTN 4.2000 22 Jun 2026	0.3	Bonds		Canada	AUD	1,000,000	$1,135,030	$1,135,030	2026-06-22	4.2	2.0243	5.8114
CEUAU 3.4 03/25/26 Corp	CONNECTEAST FINANCE PTY MTN 3.400 25 Mar 26	0.2	Bonds		Australia	AUD	900,000	$957,024	$957,024	2026-03-25	3.4	2.3323	5.5665
ENPGAS 3.642 12/11/24 Corp	ENERGY PARTNERSHIP GAS MTN 3.6420 11 Dec 2024	0.2	Bonds		Australia	AUD	700,000	$750,547	$750,547	2024-12-11	3.642	2.1493	4.4377
ANZ 4 07/22/26 Corp	AUST & NZ BANKING GROUP MTN 4.0000 22 Jul 2026	0.1	Bonds	Financials	Australia	AUD	275,000	$310,918	$310,918	2026-07-22	4.0	1.9268	5.9284

Download CSV

* As at 17 October 2019

Sector Allocation

Financial	44.8%
Communications	20.2%
Consumer, Non-cyclical	11.3%
Utilities	8.8%
Consumer, Cyclical	4.6%
Industrial	3.7%
Energy	3.1%
Basic Materials	3.7%

* As of 30 September 2019

PERFORMANCE

Fund Returns After Fees (%)

	Fund	Index
1 month	-0.32%	-0.30%
3 months	3.29%	3.37%
6 months	7.81%	7.89%
1 year	15.40%	15.66%
3 year p.a	-	6.86%
5 year p.a	-	7.62%
Since inception (p.a)	12.21%	12.46%
Inception date	31-May-18	-

* As at 30 September 2019

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	Monthly
12 Mth Distribution Yield* (%)	3.4%
12 Mth Gross Distribution Yield* (%)	-
Franking Level	-

*As at 30 September 2019. 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. Past performance is not an indicator of future performance.

Recent Distributions

Ex Date	Record Date	Payment Date	Distribution Unit ($)	Annual Distribution Return (%) (1)
1-Oct-19	2-Oct-19	16-Oct-19	$0.06671	4.29%
2-Sep-19	3-Sep-19	17-Sep-19	$0.05445	4.38%
1-Aug-19	2-Aug-19	16-Aug-19	$0.06051	4.39%
1-Jul-19	2-Jul-19	16-Jul-19	$0.12562	4.50%
3-Jun-19	4-Jun-19	19-Jun-19	$0.07664	4.41%
1-May-19	2-May-19	16-May-19	$0.07789	-
1-Apr-19	2-Apr-19	16-Apr-19	$0.07851	-
1-Mar-19	4-Mar-19	18-Mar-19	$0.07364	-
1-Feb-19	4-Feb-19	18-Feb-19	$0.07689	-
2-Jan-19	3-Jan-19	17-Jan-19	$0.08194	-
3-Dec-18	4-Dec-18	18-Dec-18	$0.07744	-
1-Nov-18	2-Nov-18	16-Nov-18	$0.08086	-
1-Oct-18	2-Oct-18	16-Oct-18	$0.07127	-
3-Sep-18	4-Sep-18	18-Sep-18	$0.07897	-
1-Aug-18	2-Aug-18	16-Aug-18	$0.08283	-
2-Jul-18	3-Jul-18	17-Jul-18	$0.07285	-

(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: CRED

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RESOURCES

	Factsheet - CRED	Download
	Fund Flyer - CRED	Download
	Product Brochure - CRED	Download
	Portfolio Holdings	Download
	Product Disclosure Statement - CRED	Download
	Annual Report - June 2019	Download
	NRWT and Fund Payment Notice information - September 2019 distributions	Download
	NRWT and Fund Payment Notice information - August 2019 distributions	Download
	NRWT and Fund Payment Notice information - July 2019 distributions	Download
	NRWT and Fund Payment Notice information - June 2019 distributions	Download
	NRWT and Fund Payment Notice information – May 2019 distributions	Download
	NRWT and Fund Payment Notice information – April 2019 distributions	Download
	NRWT and Fund Payment Notice information – March 2019 distributions	Download
	NRWT and Fund Payment Notice information - February 2019 Distribution	Download
	NRWT and Fund Payment Notice information - January 2019 Distribution	Download
	NRWT and Fund Payment Notice information – December 2018 distributions	Download
	NRWT and Fund Payment Notice information – November 2018 distributions	Download
	NRWT and Fund Payment Notice information – October 2018 distributions	Download

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