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 18 January 2020

Current Price
Last Trade*	-
% Change (prev day)	-
Bid (delayed)	-
Offer (delayed)	-

*Data is delayed by at least 20 minutes.

Download NAV history

NAV
NAV/Unit *	$27.65

* As at 16 January 2020

Profile

Net Assets* ($A)	$393,861,099
Units Outstanding* (#)	14,246,273
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 16 January 2020

* 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.	3.47 % 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. Reflects annualised costs and benefits associated with FX-hedging, where relevant.	2.46 % p.a.
Average Maturity (yrs) Average (weighted by market value) length of time until the current bonds in the portfolio mature.	7.46 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%.	6.36 yrs
Average Credit Rating Average credit rating for the bonds in the portfolio. Source: Bloomberg	A-

As at 17 January 2020

Portfolio Holdings

Top 10 All

Name	Weight (%)
EMIRATES NBD BANK PJSC 4.75% FEB-28	4.7
FONTERRA CO-OPERATIVE GROUP LTD 4.0% NOV-27	4.5
TELSTRA CORP LTD 4.0% APR-27	4.4
QNB FINANCE LTD 4.9% FEB-28	4.3
UNITED ENERGY DISTRIBUTION PTY LTD 2.2% OCT-26	4.3
BPCE SA 4.5% APR-28	4.1
MACQUARIE GROUP LTD 4.15% DEC-27	4.0
LLOYDS BANKING GROUP PLC 4.25% NOV-27	4.0
AT&T INC 4.6% SEP-28	4.0
MCDONALD'S CORP 3.8% MAR-29	3.9

Ticker	Name	Weight (%)	Asset Class	Sector	Country	Currency	Shares/Unit (#)	Market Value (AUD)	Notional Value (AUD)	Maturity Date	Coupon (%)	YTM (%)	Modified Duration
EBIUH 4.75 02/09/28 Corp	EMIRATES NBD BANK PJSC 4.75% FEB-28	4.7	Bonds	Financials	United Arab Emirates	AUD	16,220,000	$18,411,646	$18,411,646	2028-02-09	4.75	2.8591	6.6556
FCGNZ 4 11/02/27 Corp	FONTERRA CO-OPERATIVE GROUP LTD 4.0% NOV-27	4.5	Bonds	Consumer Staples	New Zealand	AUD	15,700,000	$17,667,053	$17,667,053	2027-11-02	4.0	2.2362	6.7060
TLSAU 4 04/19/27 Corp	TELSTRA CORP LTD 4.0% APR-27	4.4	Bonds	Communication Services	Australia	AUD	15,310,000	$17,307,036	$17,307,036	2027-04-19	4.0	2.0525	6.3017
QNBK 4.9 02/01/28 Corp	QNB FINANCE LTD 4.9% FEB-28	4.3	Bonds		Qatar	AUD	14,680,000	$16,762,505	$16,762,505	2028-02-01	4.9	2.9063	6.6024
UELAU 2.2 10/29/26 Corp	UNITED ENERGY DISTRIBUTION PTY LTD 2.2% OCT-26	4.3	Corporate Bond		Australia	AUD	16,630,000	$16,707,496	$16,707,496	2026-10-29	2.2	2.1255	6.0908
BPCEGP 4.5 04/26/28 Corp	BPCE SA 4.5% APR-28	4.1	Bonds		France	AUD	14,340,000	$16,149,851	$16,149,851	2028-04-26	4.5	2.7793	6.9174
MQGAU 4.15 12/15/27 Corp	MACQUARIE GROUP LTD 4.15% DEC-27	4.0	Bonds	Financials	Australia	AUD	14,310,000	$15,748,298	$15,748,298	2027-12-15	4.15	2.7266	6.7589
LLOYDS 4.25 11/22/27 Corp	LLOYDS BANKING GROUP PLC 4.25% NOV-27	4.0	Bonds	Financials	Britain	AUD	14,100,000	$15,562,452	$15,562,452	2027-11-22	4.25	2.7678	6.6748
T 4.6 09/19/28 Corp	AT&T INC 4.6% SEP-28	4.0	Bonds	Communication Services	United States	AUD	13,350,000	$15,447,552	$15,447,552	2028-09-19	4.6	2.5646	7.1695
MCD 3.8 03/08/29 Corp	MCDONALD'S CORP 3.8% MAR-29	3.9	Bonds	Consumer Discretionary	United States	AUD	13,730,000	$15,316,502	$15,316,502	2029-03-08	3.8	2.3839	7.5166
VOD 4.2 12/13/27 Corp	VODAFONE GROUP PLC 4.2% DEC-27	3.9	Bonds	Communication Services	Britain	AUD	13,690,000	$15,227,113	$15,227,113	2027-12-13	4.2	2.6161	6.7529
VZ 4.5 08/17/27 Corp	VERIZON COMMUNICATIONS INC 4.5% AUG-27	3.8	Bonds	Communication Services	United States	AUD	12,880,000	$14,875,627	$14,875,627	2027-08-17	4.5	2.2621	6.4108
ABIBB 4.1 09/06/27 Corp	ANHEUSER-BUSCH INBEV WORLDWIDE INC 4.1% SEP-27	3.8	Bonds		Belgium	AUD	13,110,000	$14,847,731	$14,847,731	2027-09-06	4.1	2.2016	6.5356
ANVAU 4.2 08/21/28 Corp	AUSNET SERVICES HOLDINGS PTY LTD 4.2% AUG-28	3.6	Bonds		Australia	AUD	12,240,000	$14,176,980	$14,176,980	2028-08-21	4.2	2.1695	7.2170
BACR 4 06/26/29 Corp	BARCLAYS PLC 4.0% JUN-29	3.6	Bonds	Financials	Britain	AUD	13,000,000	$14,111,110	$14,111,110	2029-06-26	4.0	2.9546	7.8818
MET 4 07/13/27 Corp	METROPOLITAN LIFE GLOBAL FUNDING I 4.0% JUL-27	3.6	Bonds		United States	AUD	12,531,000	$13,929,961	$13,929,961	2027-07-13	4.0	2.3625	6.5134
CGJAU 2.65 11/06/29 Corp	COLES GROUP TREASURY PTY LTD 2.65% NOV-29	3.3	Bonds		Australia	AUD	12,680,000	$12,784,230	$12,784,230	2029-11-06	2.65	2.5544	8.3499
IPLAU 4.3 03/18/26 Corp	INCITEC PIVOT LTD 4.3% MAR-26	3.1	Bonds	Materials	Australia	AUD	11,270,000	$12,209,918	$12,209,918	2026-03-18	4.3	2.8145	5.1671
ANVAU 2.6 07/31/29 Corp	AUSNET SERVICES HOLDINGS PTY LTD 2.6% JUL-29	3.0	Bonds		Australia	AUD	11,460,000	$11,673,958	$11,673,958	2029-07-31	2.6	2.3799	8.3115
CTXAU 4 04/17/25 Corp	CALTEX AUSTRALIA LTD 4.0% APR-25	2.7	Bonds	Energy	Australia	AUD	9,590,000	$10,395,944	$10,395,944	2025-04-17	4.0	2.2875	4.4997
ARNDTN 4.5 05/14/25 Corp	AROUNDTOWN SA 4.5% MAY-25	2.6	Bonds	Real Estate	Germany	AUD	9,520,000	$10,337,768	$10,337,768	2025-05-14	4.5	2.7505	4.7100
CGJAU 2.2 11/06/26 Corp	COLES GROUP TREASURY PTY LTD 2.2% NOV-26	2.4	Bonds		Australia	AUD	9,500,000	$9,565,265	$9,565,265	2026-11-06	2.2	2.0907	6.0438
LLOYDS 4 03/07/25 Corp	LLOYDS BANKING GROUP PLC 4.0% MAR-25	2.3	Bonds	Financials	Britain	AUD	8,290,000	$8,944,164	$8,944,164	2025-03-07	4.0	2.3563	4.5881
AU3CB0266906 Corp	PACIFIC NATIONAL FINANCE PTY LTD 3.7% SEP-29	1.9	Bonds		Australia	AUD	7,400,000	$7,594,028	$7,594,028	2029-09-24	3.7	3.3795	7.8370
AAA AT	BETASHARES AUSTRALIAN HIGH INT	1.9	Equities	Financials	Australia	AUD	150,000	$7,515,000	$7,515,000
LOFINA 2.45 11/20/26 Corp	LONSDALE FINANCE PTY LTD 2.45% NOV-26	1.8	Bonds		Australia	AUD	7,000,000	$7,050,330	$7,050,330	2026-11-20	2.45	2.3353	6.0234
BACAU 3.9 04/24/25 Corp	BRISBANE AIRPORT CORP PTY LTD 3.9% APR-25	1.7	Bonds		Australia	AUD	6,110,000	$6,672,426	$6,672,426	2025-04-24	3.9	2.0437	4.7385
ORGAU 2.65 11/11/27 Corp	ORIGIN ENERGY FINANCE LTD 2.65% NOV-27	1.7	Bonds		Australia	AUD	6,480,000	$6,542,338	$6,542,338	2027-11-11	2.65	2.5132	6.7802
RABOBK 4.25 05/12/26 Corp	COOPERATIEVE RABOBANK UA/AUSTRALIA 4.25% MAY-26	1.3	Bonds		Netherlands	AUD	4,640,000	$5,231,786	$5,231,786	2026-05-12	4.25	2.0815	5.5515
VZ 2.1 05/06/26 Corp	VERIZON COMMUNICATIONS INC 2.1% MAY-26	1.0	Bonds	Communication Services	United States	AUD	4,000,000	$4,012,880	$4,012,880	2026-05-06	2.1	2.0451	5.8421
AUD	AUD - AUSTRALIA DOLLAR	1.0	Cash			AUD	3,809,996	$3,809,996	$3,809,996
ANZ 4 07/22/26 Corp	AUSTRALIA & NEW ZEALAND BANKING GROUP LTD 4.0% JUL-26	0.9	Bonds	Financials	Australia	AUD	3,175,000	$3,577,431	$3,577,431	2026-07-22	4.0	1.9175	5.7849
WSOFIN 4.5 03/31/27 Corp	WSO FINANCE PTY LTD 4.5% MAR-27	0.9	Bonds		Australia	AUD	3,000,000	$3,442,110	$3,442,110	2027-03-31	4.5	2.2681	5.9722
CEUAU 3.4 03/25/26 Corp	CONNECTEAST FINANCE PTY LTD 3.4% MAR-26	0.8	Bonds		Australia	AUD	2,900,000	$3,080,177	$3,080,177	2026-03-25	3.4	2.3141	5.3203
NETFIN 2.25 11/11/26 Corp	NETWORK FINANCE CO PTY LTD 2.25% NOV-26	0.5	Bonds		Australia	AUD	1,800,000	$1,795,842	$1,795,842	2026-11-11	2.25	2.2869	6.2491
AIANZ 4.5 09/23/27 Corp	AUCKLAND INTERNATIONAL AIRPORT LTD 4.5% SEP-27	0.4	Bonds	Industrials	New Zealand	AUD	1,210,000	$1,412,784	$1,412,784	2027-09-23	4.5	2.1205	6.5175
RY 4.2 06/22/26 Corp	ROYAL BANK OF CANADA/SYDNEY 4.2% JUN-26	0.3	Bonds		Canada	AUD	1,000,000	$1,131,120	$1,131,120	2026-06-22	4.2	2.0118	5.6706

Download CSV

* As at 16 January 2020

Sector Allocation

Financial	36.8%
Communications	17.7%
Consumer, Non-cyclical	18.0%
Utilities	13.4%
Industrial	4.2%
Consumer, Cyclical	4.1%
Energy	2.6%
Basic Materials	3.3%

* As of 31 December 2019

PERFORMANCE

Fund Returns After Fees (%)

	Fund	Index
1 month	-1.71%	-1.70%
3 months	-1.16%	-1.16%
6 months	2.10%	2.17%
1 year	11.69%	11.81%
3 year p.a	-	8.00%
5 year p.a	-	6.31%
Since inception (p.a)	9.36%	9.58%
Inception date	31-May-18	-

* As at 31 December 2019

Chart

Chart Type

Draw trend line

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 31 December 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)
2-Jan-20	3-Jan-20	17-Jan-20	$0.10579	3.97%
2-Dec-19	3-Dec-19	17-Dec-19	$0.08001	3.98%
1-Nov-19	4-Nov-19	18-Nov-19	$0.06407	4.02%
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 - December 2019 distributions	Download
	NRWT and Fund Payment Notice information - November 2019 distributions	Download
	NRWT and Fund Payment Notice information - October 2019 distributions	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

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