BetaShares Equity Yield Maximiser Fund upgraded to Lonsec ‘Recommended’ rating

BetaShares’ popular ASX-traded fund, BetaShares Australian Top 20 Equity Yield Maximiser Fund (managed fund) (ASX Code ‘YMAX’), has been upgraded from ‘Investment Grade’ to “Recommended” by Lonsec.

YMAX, which implements a buy-write equity income strategy seeking to boost yield and reduce volatility over a portfolio of 20 blue-chip shares, was described by Lonsec as an efficient and transparent way to gain exposure to sophisticated equity income trading strategies.

In order to develop its ratings, Lonsec reviews a fund manager’s investment process, people and resources, liquidity, fees, performance and the risk associated with the fund.

In its review of the fund, Lonsec noted that the fund’s fees compare favourably to other active funds offering access to similar strategies. The research firm also expressed confidence in the fund’s track record since its inception – YMAX had returned a 9.5 per cent yield inclusive of franking credits for the year ended December 2013*.

BetaShares Managing Director, Alex Vynokur, said the ratings upgrade highlighted the strong performance of the fund, supported by a robust underlying methodology.

“YMAX aims to give investors exposure to an equity income strategy that might ordinarily be difficult or more costly to access”, said Mr Vynokur. “It’s an example of the way exchange-traded products can help achieve targeted investment goals in a portfolio, and it’s pleasing to see that Lonsec has recognised the value of this strategy in its review.”

“During 2013, YMAX was the second most popular BetaShares product by way of inflows, and in the past month alone the product’s funds under management have grown over 20 per cent. We believe the independent ratings upgrade will result in YMAX being available on more APLs and platforms, allowing more advisers and investors to consider the fund,” he said.
The fund joins the following BetaShares products which are also listed as Recommended  Index  by Lonsec:
–       BetaShares FTSE RAFI Australia 200 ETF (QOZ)
–       BetaShares US Dollar ETF (USD)
–       BetaShares Gold Bullion ETF-Currency Hedged(QAU)
–       BetaShares Commodities Basket ETF-Currency Hedged (Synthetic) (QCB)

‘The ‘Recommended’ rating indicates that Lonsec has strong conviction the financial product can generate risk adjusted returns in line with relevant objectives. The financial product is considered an appropriate entry point to this asset class or strategy.’

*Yield calculated as the sum of gross per unit distributions for 2013 divided by the Fund’s ex-distribution NAV per unit as at 31 December 2013. Past performance is not an indication of future performance.