BetaShares’ Active Australian Hybrids Fund (managed fund) (ASX: HBRD) has been awarded a ‘Recommended’ rating from Lonsec.
Launched in November 2017, HBRD is Australia’s only Active ETF which provides access to a professionally managed, diversified portfolio of hybrid securities in a single ASX trade.
As part of its review procedure, Lonsec looks at a fund manager’s investment process, people and resources, as well as the liquidity, fees, performance and the risks associated with the fund.
BetaShares Chief Executive Officer, Alex Vynokur, said HBRD takes away the complexity of owning hybrids directly, and instead, provides simple access to a high-quality and diversified portfolio.
“While hybrids have always been well adopted by Australian investors, it is important to note that they are complex instruments and require vigilant oversight and attention,” says Vynokur. “They are not a ‘set and forget’ investment.
“As an asset class, hybrids have historically offered investors attractive tax-efficient income, higher levels of capital stability, and lower levels of volatility compared to Australian shares.”