BetaShares, a leading Australian manager of exchange traded funds, has been awarded a “Recommended” rating from Lonsec for its Managed Risk Australian Share Fund (ASX code ‘AUST’).
Launched in November, AUST provides investors with cost-effective exposure to a diversified portfolio of Australian shares, along with the potential for reduced downside in declining markets.
The strategy used by AUST is to invest in a passively managed portfolio of Australian shares (consisting of approximately 200 of the largest shares on the ASX by market capitalisation), providing investors with the opportunity for capital growth and income. In addition, the Fund employs an active risk management strategy, which seeks to reduce volatility and defend against losses in declining markets.
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. The “Recommended” rating is the second highest investment rating able to be awarded by Lonsec.
In its review of AUST, Lonsec noted that the fund provides investors with an efficient means of gaining exposure to the Australian equities market in a risk-controlled manner. Additionally, Lonsec commended the fund for using Milliman, one of the world’s largest providers of risk management services, to manage the risk management strategy.
Alex Vynokur, BetaShares’ Managing Director, said the rating highlighted the benefits AUST can provide to investors who want to obtain Australian equity exposure but are concerned about the effects of uncertain financial markets.
“We are pleased to receive independent recognition of AUST’s investment strategy. Particularly in a low interest rate environment, investors may be attracted to the potential performance of shares, yet concerned about the impact of volatility and potential losses when markets fall.
The risk management strategy used by AUST mitigates these concerns, by actively monitoring sharemarket volatility, and applying a handbrake when volatility rises to reduce the impact of major market declines.”
The fund joins the following BetaShares products which are also listed as “Recommended” or “Recommended (Index)” by Lonsec:
– BetaShares Australian High Interest Cash ETF (AAA)
– BetaShares FTSE RAFI Australia 200 ETF (QOZ)
– BetaShares US Dollar ETF (USD)
– BetaShares Australian Top 20 Equity Yield Maximiser Fund (managed fund) (YMAX)
– BetaShares S&P 500 Yield Maximiser Fund (managed fund) (UMAX)
– BetaShares FTSE RAFI US 1000 ETF (QUS)
– BetaShares Geared Australian Equity Fund (hedge fund) (GEAR)
– BetaShares NASDAQ 100 ETF (NDQ)
