Geared Australian Equity Fund (hedge fund)
- Australian shares
Geared exposure to the Australian sharemarket
Overview
Fund objective
GEAR provides investors with cost-effective geared exposure to the returns of the broad Australian sharemarket.
Fund strategy
The Fund is ‘internally geared’, meaning all gearing obligations are met by the Fund. 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 equity securities on the ASX by market capitalisation (as measured by the S&P/ASX 200 Index).
The Fund’s gearing ratio (being the total amount borrowed expressed as a percentage of the total assets of the Fund) is managed between 50-65% on any given day.
The gearing ratio will generally vary between 50% and 65% on a given day. This means that the Fund’s geared exposure is anticipated to vary between 200% and 286% of the Fund’s Net Asset Value on a given day. The Fund’s portfolio exposure is actively monitored and adjusted to stay within this range. The Fund’s returns will not necessarily be in this range over periods longer than a day, due to the effects of rebalancing to maintain the Fund’s daily target geared exposure range and compounding of investment returns over time. The Fund’s returns over periods longer than one day may differ in amount and possibly direction from the daily target geared return range. This effect on returns over time can be expected to be more pronounced the more volatile the broad Australian sharemarket and the longer an investor’s holding period.
Due to the effects of rebalancing and compounding of investment returns over time, investors should not expect the Fund’s Net Asset Value to be at a particular level for a given value of the broad Australian sharemarket at any point in time.
Investors should actively monitor their investment as frequently as daily to ensure it continues to meet their investment objectives.
Gearing magnifies gains and losses and may not be a suitable strategy for all investors. Investors in geared strategies should be willing to accept higher levels of investment volatility and potentially large moves (both up and down) in the value of their investment. Geared investments involve significantly higher risk than non-geared investments. An investment in the Fund is very high risk in nature.
Benefits of GEAR
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Leveraged returns
GEAR gives you the opportunity to make magnified gains when the Australian sharemarket rises on a given day, and magnified losses when the Australian sharemarket falls.
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Simple to access, convenient
Avoid the costs and complications of margin loans and CFDs. No need to borrow funds, no credit assessment, and diversified exposure in a single ASX trade.
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No margin calls
Investors in GEAR do not face the possibility of margin calls.
There are risks associated with an investment in GEAR, including market risk, gearing risk and lender risk. Investment value can go up and down. An investment in the Fund should only be considered as a part of a broader portfolio, taking into account your particular circumstances, including your tolerance for risk. For more information on risks and other features of the Fund, please see the Product Disclosure Statement and Target Market Determination, both available on this website.
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
| Current price | |
|---|---|
| Last trade* | |
| % Change (prev day) | |
| Bid (delayed) | |
| Offer (delayed) | |
| ASX iNav code | YGEA |
* Data is delayed by at least 20 minutes.
| NAV | |
|---|---|
| NAV/Unit* | $23.53 |
* As at 30 November 2023
Profile
| Net assets* ($A) | $430,861,131 |
|---|---|
| Units outstanding* (#) | 18,311,594 |
| Management fee and cost** (p.a.) | 0.8% |
| Distribution frequency | Semi-annual |
| Distribution reinvestment plan (DRP) | Full or partial participation available |
| Issuer | Betashares Capital Ltd |
| Registry | Link Market Services |
* As at 30 November 2023
**Costs expressed as a percentage of gross 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 |
| iNAV IRESS code | GEARINAV.ETF |
| Market makers | Susquehanna Pacific |
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 * (%) | 57.8% |
| Current gearing multiple** (x) | 2.37 |
* As at 1 December 2023. 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, before fees and expenses. The Fund is actively managed and the gearing multiple will change on a daily basis, affecting returns over time.
Holdings & allocation
Sector allocation
| Financials | 28.3% |
|---|---|
| Materials | 24.8% |
| Health Care | 8.7% |
| Consumer Discretionary | 6.9% |
| Industrials | 6.8% |
| Energy | 6.2% |
| Real Estate | 5.8% |
| Consumer Staples | 4.5% |
| Communication Services | 4.0% |
| Other | 3.9% |
* As of 31 October 2023
Performance
Fund returns after fees (%)
| Fund | Index | |
|---|---|---|
| 1 month | -9.76% | -3.78% |
| 3 months | -18.20% | -7.19% |
| 6 months | -16.11% | -5.30% |
| 1 year | -1.06% | 2.95% |
| 3 year p.a. | 14.89% | 8.88% |
| 5 year p.a. | 7.94% | 7.18% |
| 10 year p.a. | - | - |
| Since inception (p.a.) | 6.97% | 6.58% |
| Inception date | 30-Apr-14 | - |
* As at 31 October 2023.
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.
Chart
Past performance is not indicative of future performance. Please refer to "Fund returns after fees" for additional information regarding performance/return information.
Distributions
Yield information
| Distribution frequency | Semi-annual |
|---|---|
| 12 mth distribution yield* | 5.7% |
| 12 mth gross distribution yield* | 9.8% |
| Franking level | 166.7% |
*As at 31 October 2023. Yield is calculated by summing the prior 12-month per unit distributions divided by the closing NAV per unit at the end of the relevant period. Yield will vary and may be lower at time of investment. Franking level is total franking level over the last 12 months. Past performance is not an indicator of future performance.