Strong Australian Dollar Fund (hedge fund)
- Currency
Geared exposure to the value of the Australian dollar relative to the US dollar
Overview
Fund objective
AUDS aims to provide geared exposure to changes in the value of the Australian dollar against the U.S. dollar.
Fund strategy
AUDS generally expects to generate a positive return of between 2% and 2.75% for a 1% rise in the value of the Australian dollar against the U.S. dollar on a given day (and a corresponding negative return when the Australian dollar falls in value on a given day).
The Fund’s portfolio exposure is actively monitored and adjusted to stay within a 2x to 2.75x range on any given day. The Fund’s returns will not necessarily be in the range 2x to 2.75x 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 return range. This effect on returns over time can be expected to be more pronounced the more volatile the AUD/USD currency exchange rate 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 Australian dollar relative to the U.S. dollar 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. An investment in the Fund is very high risk in nature.
Benefits of AUDS
-
Geared exposure to a rising AUD
Potential for magnified gains if the AUD appreciates against the USD (and magnified losses if the AUD depreciates).
-
Simple to access, convenience
AUDS is traded in Australian dollars on the ASX, avoiding the inconvenience and complexity of trading CFDs, or dealing in FX markets. No margin calls for investors.
-
Hedge international investments
Reduce the currency impact of an appreciating AUD on your investments denominated in USD.
There are risks associated with an investment in AUDS, including currency exchange rate risk, gearing risk, currency futures risk and concentration 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) | |
| iNAV (live)** | |
* Data is delayed by at least 20 minutes.
* As at 20 April 2022 04:29:59 PM
| NAV | |
|---|---|
| NAV/Unit* | $6.47 |
* As at 29 November 2023
Profile
| Net assets* ($A) | $30,095,019 |
|---|---|
| Units outstanding* (#) | 4,650,000 |
| Management fee and cost** (p.a.) | 1.38% |
| Distribution frequency | Annual |
| Distribution reinvestment plan (DRP) | Full or partial participation available |
| Issuer | Betashares Capital Ltd |
| Registry | Link Market Services |
* As at 29 November 2023
**Certain additional costs apply. Please refer to PDS.Trading information
| ASX code | AUDS |
|---|---|
| Bloomberg code | AUDS AU |
| IRESS code | AUDS.AXW |
| iNAV IRESS code | AUDSINAV.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 exposure range | 200%-275% |
|---|---|
| Current gearing exposure* (%) | 216.1% |
| Current gearing multiple** (x) | 2.16 |
* 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 the change in value of the Australian dollar relative to the U.S. dollar as measured by the futures contract held in the Fund. For example, if the Fund's Gearing multiple is 2.30x and the Australian dollar goes up relative to the U.S. dollar by 1% that day, the Fund would be expected to go up approximately 2.30% that day, before fees and expenses. The Fund is actively managed and the portfolio exposure will change on a daily basis, affecting returns over time.
Performance
Fund returns after fees (%)
| Fund | AUD/USD NY 3PM BFIX | |
|---|---|---|
| 1 month | -3.65% | -1.49% |
| 3 months | -13.71% | -5.63% |
| 6 months | -10.67% | -4.13% |
| 1 year | -6.75% | -0.83% |
| 3 year p.a. | -13.05% | -3.38% |
| 5 year p.a. | -11.08% | -2.17% |
| 10 year p.a. | - | - |
| Since inception (p.a.) | -10.29% | -2.35% |
| Inception date | 28-Nov-16 | - |
* 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 | Annual |
|---|---|
| 12 mth distribution yield* | - |
*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. Past performance is not indicative of future performance.
Recent distributions
| Ex Date | Record Date | Payment Date | Distribution Unit ($) | Annual Distribution Return (%) (1) |
|---|---|---|---|---|
| 1-Jul-20 | 2-Jul-20 | 16-Jul-20 | $1.159169 | 9.83% |
| 3-Jul-17 | 4-Jul-17 | 18-Jul-17 | $0.313469 | - |
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.