GGUS

About

The Geared U.S. Equity Fund provides investors with a simple way to obtain a cost-effective geared exposure to the returns of the U.S. share market

• The Fund is ‘internally geared’, meaning all gearing obligations are met by the Fund, such that there are no possibilities of margin calls for investors
• The Fund combines funds received from investors with borrowed funds, and invests the proceeds in a portfolio that provides exposure to a broadly diversified share portfolio consisting of the largest 500 shares listed in the US by market capitalisation
• The Fund’s gearing ratio (total amount borrowed expressed as a percentage of the total assets of the Fund) will be managed between 50-65%

Gearing magnifies gains and losses and may not be a suitable strategy for all investors. 

Advantages

• Access – ability to obtain magnified returns to the U.S. sharemarket as simply as buying any share on the ASX
• Convenience – avoid the complexity associated with margin loans or CFDs
• Cost effective – management fee lower than most geared fund alternatives
• No margin calls for investors – gearing obligations met by the Fund with no further recourse to the investor
• Lower cost of borrowing – Fund uses its capacity as wholesale investor to borrow at significantly lower interest rates than those available directly to individual investors
• SMSF eligible – a means to access gearing in SMSFs/super as a component of a diversified portfolio, depending on investor’s tolerance for risk
• Diversification – exposure to a broadly diversified portfolio of shares representative of the US equity market
• Reduced currency risk – US dollar exposure hedged to the Australian dollar
• No W-8 BEN forms and no US estate tax implications for investors – simplified tax administration, unlike cross-listed alternatives

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