Strong U.S. Dollar Fund (hedge fund)

YANK

Geared exposure to the value of the US dollar relative to the Australian dollar

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Overview

Fund objective

YANK aims to provide geared exposure to changes in the value of the U.S. dollar against the Australian dollar.

Fund strategy

YANK generally expects to generate a positive return of between 2% and 2.75% for a 1% rise in the value of the U.S. dollar against the Australian dollar on a given day (and a corresponding negative return when the U.S. 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 USD/AUD 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 U.S. dollar relative to the Australian 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 YANK

  • Geared exposure to a rising USD

    Potential to make magnified gains if the USD appreciates against the AUD (and magnified losses if the USD depreciates).

  • Simple to access, convenience

    YANK 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.

  • Portfolio diversification

    Currency exposure can diversify your portfolio, as currencies historically have shown low correlation to shares and most other major asset classes.

There are risks associated with an investment in YANK, 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* $12.50

* As at 22 May 2024

Profile

Net assets* ($A) $5,662,805
Units outstanding* (#) 453,179
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 22 May 2024

**Certain additional costs apply. Please refer to PDS.

Trading information

ASX code YANK
Bloomberg code YANK AU
IRESS code YANK.AXW
iNAV IRESS code YANKINAV.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* (%) 236.6%
Current gearing multiple** (x) 2.37

* As at 24 May 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 the change in value of the U.S. dollar relative to the Australian dollar as measured by the futures contract held in the Fund. For example, if the Fund's Gearing multiple is 2.30x and the U.S. dollar goes up relative to the Australian 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 Spot AUD/USD
1 month 1.74% -0.55%
3 months 5.53% -1.77%
6 months -2.43% 2.22%
1 year 11.03% -2.00%
3 year p.a. 15.41% -5.60%
5 year p.a. 2.40% -1.67%
10 year p.a. - -
Since inception (p.a.) 2.68% -1.90%
Inception date 28-Nov-16 -

* As at 30 April 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 Annual
12 mth distribution yield* 5.2%

*As at 30 April 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. Past performance is not indicative 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)
3-Jul-23 4-Jul-23 18-Jul-23 $0.672956 5.79%
1-Jul-22 4-Jul-22 18-Jul-22 $0.796652 7.95%
1-Jul-19 2-Jul-19 16-Jul-19 $2.637862 18.52%
2-Jul-18 3-Jul-18 17-Jul-18 $0.436888 3.19%

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: YANK

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