HBRD portfolio update

The gradual phasing out of bank hybrids by APRA is driving a structural shift in the Australian credit market that will materially reduce the size and relevance of the domestic bank hybrid market over the coming years.

HBRD Australian Credit Income Active ETF has responded proactively, with changes effective from 31 March 2026 that expand its opportunity set while preserving the strategy’s core focus on high quality, floating rate investment grade financial credit.

Following on from our recently held webinar with Chamath De Silva, Head of Fixed Income at Betashares, and Christopher Joye, Portfolio Manager and CIO at Coolabah Capital Investments, that can be watched here, and our article on the fund’s changes which can be read here, we provide an update below on the fund’s portfolio change following the 31 March update.

As the fund already had scope to invest across the capital stack, the portfolio sector weights saw minimal changes in the days following the update on 31 March 2026.

Source: Betashares. As at 2 April 2026. Subject to change.

HBRD’s investors can expect the fund to behave in a similar nature to the active credit income exposure that it has historically been. The expected return and risk characteristics of HBRD going forward are not materially different to what they were a year ago, when APRA formally announced the phase out of Australian bank hybrids.

While the changes didn’t significantly alter the core nature of HBRD or its risk profile, the broader investment universe does deliver some genuine advantages worth understanding. The details can be read here.