BetaShares, a leading Australian manager of exchange traded products, today announced its Managed Risk Series of ASX traded funds has grown to over $200 million in funds under management (FUM).
The Managed Risk Series currently comprises:
. BetaShares Australian Dividend Harvester Fund (managed fund) (ASX: HVST)
. BetaShares Managed Risk Australian Share Fund (managed fund) (ASX: AUST),
. BetaShares Managed Risk Global Share fund (managed fund) (ASX: WRLD)
BetaShares Managed Risk funds actively monitor share market volatility and, when volatility rises, apply a ‘handbrake’ to seeking to reduce the impact of market declines. The funds reduce investors’ exposure to equities in falling markets while still allowing participation in rising markets.
The development of the Managed Risk Series was driven by demand from investors and their advisers to gain exposure to the capital and income return potential of the equity markets, but who may be concerned about the risk of capital loss during times of significant market declines. Such concerns are particularly relevant to the SMSF and retiree market.
HVST, the longest running BetaShares Managed Risk fund, has delivered a distribution yield (paid monthly) of over 12% p.a. which compares to a yield of ~5% p.a. from the S&P/ASX 50. At the same time, annualised volatility of HVST since inception has been 8.7% relative to the S&P/ASX 50 of 17.4%*.
The success of the Managed Risk Series aligns with the high growth of the Australian exchange traded funds industry, which hit an all-time FUM record of $21.9 billion in April, according to the BetaShares Australian ETF Review.
Commenting on the milestone, BetaShares Managing, Director Alex Vynokur, said: “The Managed Risk Series lets investors find a balance between investing too cautiously and risking insufficient investment performance, and investing too aggressively and risking exposure to significant losses in market declines.
“The popularity of and the growth of the industry at large highlights how funds traded on the exchange have transformed from a little known investment category to a key investment tool for advisers.”
