Geared Australian Equity Fund (hedge fund)

GEAR

Geared exposure to the Australian sharemarket

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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

  • 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.

  • 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.

  • 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* $26.75

* As at 19 April 2024

Profile

Net assets* ($A) $395,752,408
Units outstanding* (#) 14,793,679
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 19 April 2024

**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 BNP Paribas Financial Markets SNC

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* (%) 54.6%
Current gearing multiple** (x) 2.20

* As at 22 April 2024 . 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
29.9%
Materials
22.0%
Health Care
9.6%
Consumer Discretionary
7.3%
Real Estate
6.9%
Industrials
6.8%
Energy
5.3%
Consumer Staples
4.1%
Communication Services
3.8%
Other
4.3%

* As of 28 March 2024

Performance

Fund returns after fees (%)

  Fund S&P/ASX 200
1 month 6.47% 3.27%
3 months 9.67% 5.33%
6 months 29.01% 14.17%
1 year 24.43% 14.45%
3 year p.a. 16.50% 9.62%
5 year p.a. 12.99% 9.15%
10 year p.a. - -
Since inception 10.59% 8.15%
Inception date 30-Apr-14 -

* As at 28 March 2024.
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* 2.7%
12 mth gross distribution yield* 5.4%
Franking level 222.9%

*As at 28 March 2024. 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.

You can elect DRP by logging into Link’s Investor Centre. Once you are logged in, please proceed to the 'Payments and Tax' tab and select ‘Reinvestment Plans'.

Recent distributions

Ex Date Record Date Payment Date Distribution Unit ($) Annual Distribution Return (%) (1)
2-Jan-24 3-Jan-24 17-Jan-24 $0.55506 3.83%
3-Jul-23 4-Jul-23 18-Jul-23 $0.250819 6.69%
3-Jan-23 4-Jan-23 18-Jan-23 $0.946946 11.57%
1-Jul-22 4-Jul-22 18-Jul-22 $2.067958 11.23%
4-Jan-22 5-Jan-22 19-Jan-22 $1.279692 9.05%
1-Jul-21 2-Jul-21 16-Jul-21 $0.623164 6.75%
4-Jan-21 5-Jan-21 19-Jan-21 $0.463022 3.38%
1-Jul-20 2-Jul-20 16-Jul-20 $0.236605 3.65%
2-Jan-20 3-Jan-20 17-Jan-20 $1.022416 12.33%
1-Jul-19 2-Jul-19 16-Jul-19 $1.101729 8.64%
2-Jan-19 3-Jan-19 17-Jan-19 $0.656025 4.55%
2-Jul-18 3-Jul-18 17-Jul-18 $0.552645 8.31%
2-Jan-18 3-Jan-18 17-Jan-18 $1.096097 7.45%
3-Jul-17 4-Jul-17 18-Jul-17 $0.397903 7.87%
3-Jan-17 4-Jan-17 18-Jan-17 $0.968419 7.67%
1-Jul-16 4-Jul-16 18-Jul-16 $0.333317 4.51%
4-Jan-16 6-Jan-16 19-Jan-16 $0.611488 4.66%
1-Jul-15 3-Jul-15 20-Jul-15 $0.43502 3.94%
2-Jan-15 6-Jan-15 19-Jan-15 $0.387378 -

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. Distribution return is calculated as the total return less the growth return. Total return is calculated as the percentage change in a continuing investor's interest in the Fund assuming reinvestment of all distributions back into the Fund (and no other application or withdrawal), net of ongoing fees. Growth return is the Fund's return excluding distributions, net of ongoing fees. Past performance is not indicative of future performance

Announcements

ASX announcements: GEAR

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