U.S. Equities Strong Bear Hedge Fund – Currency Hedged
- International shares
Opportunity to profit from, or protect against a declining U.S. sharemarket
Overview
Fund objective
BBUS seeks to generate magnified returns that are negatively correlated to the returns of the U.S. sharemarket. The Fund expects to generate a magnified positive return when the S&P 500 Total Return Index falls on a given day (and a magnified negative return when the index rises on a given day).
Fund strategy
A 1% fall in the U.S. sharemarket on a given day can generally be expected to deliver a 2% to 2.75% increase in the value of the Fund (and a corresponding decrease in the value of the Fund if the U.S. sharemarket rises).
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 short 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 U.S. sharemarket and the longer an investor’s holding period.
Investors should actively monitor their investment as frequently as daily to ensure it continues to meet their investment objectives.
The Fund uses futures to obtain its exposure rather than the underlying shares. As the futures market closes at a later time to the share market, at times the Fund’s performance for a given day may differ from that indicated by the share market. As the U.S. futures market is open during ASX trading hours, the Fund’s performance during the day will reflect movements in the futures market, even though the U.S. sharemarket is closed during that time.
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 BBUS
-
Hedge your portfolio
Seek to protect your portfolio of U.S. shares from a market decline, without having to sell your shares and crystallise capital gains.
-
Leveraged returns in declining markets
BBUS gives you the opportunity to make magnified gains when the U.S. sharemarket falls on a given day (but you can expect magnified losses when the U.S. sharemarket rises).
-
Convenience
Investing in BBUS avoids the costs and complications of futures, CFDs and short selling. You will never receive a margin call.
There are risks associated with an investment in BBUS, including risk associated with negatively correlated returns, market risk, futures risk and gearing 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) | |
* Data is delayed by at least 20 minutes.
| NAV | |
|---|---|
| NAV/Unit* | $7.59 |
* As at 7 December 2023
Profile
| Net assets* ($A) | $219,112,451 |
|---|---|
| Units outstanding* (#) | 28,852,164 |
| Management fee and cost** (p.a.) | 1.38% |
| Distribution frequency | Annual |
| Distribution reinvestment plan (DRP) | Available |
| Issuer | Betashares Capital Ltd |
| Registry | Link Market Services |
* As at 7 December 2023
**Certain additional costs apply. Please refer to PDS.Trading information
| ASX code | BBUS |
|---|---|
| Bloomberg code | BBUS AU |
| IRESS code | BBUS.AXW |
| iNAV IRESS code | N/A |
| Market makers | Susquehanna Pacific |
Index information
| Index | N/A |
|---|---|
| Index provider | N/A |
| Index ticker | N/A |
| Bloomberg index ticker | N/A |
Portfolio composition
| Name | % |
|---|---|
| 1 Cash & Cash Equivalents* | 100% |
The Fund's portfolio may comprise cash, cash equivalents and a short futures position in S&P 500 futures. For full details see our resources section.
Short exposure
| Range* (%) | -200% to -275% |
|---|---|
| Current portfolio exposure** (%) | -237.8% |
* Calculated as the Fund's short exposure to the S&P 500 Index as a percentage of the Fund's net asset value. ** Represents the Fund's approximate exposure, for the above date, to movements in the S&P; 500 Index, as measured by the futures contract held in the Fund. For example, if the Fund's portfolio exposure is -230% (or -2.30x) and the S&P 500 Index goes down 1% that day, the Fund would be expected to go up approximately 2.30% that day, before fees and expenses. The Fund is actively managed and the portfolio exposure will change on a daily basis, affecting return over time
Holdings & allocation
Sector allocation
| Short US Equities ~200% to 275% | 100.0% |
|---|
* As of 31 October 2023
Performance
Fund returns after fees (%)
| Fund | S&P 500 Index (TR, US$) | |
|---|---|---|
| 1 month | -17.95% | 9.07% |
| 3 months | -1.73% | 1.62% |
| 6 months | -15.30% | 9.90% |
| 1 year | -18.63% | 13.27% |
| 3 year p.a. | -20.97% | 9.24% |
| 5 year p.a. | -29.40% | 11.94% |
| 10 year p.a. | - | - |
| Since inception (p.a.) | -29.44% | 12.68% |
| Inception date | 24-Aug-15 | - |
* As at 30 November 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) |
|---|---|---|---|---|
| 3-Jul-23 | 4-Jul-23 | 18-Jul-23 | - | -0.00% |
| 1-Jul-22 | 4-Jul-22 | 18-Jul-22 | $1.125436 | 10.27% |
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.