Betashares brings new fixed income solution to market

Betashares has expanded its range of fixed income exchange traded funds (ETFs), with the addition of its Global Aggregate Bond Currency Hedged ETF (WBND).

The ETF offers investors exposure to global investment-grade debt via tracking of Bloomberg’s Global Aggregate Index (AUD Hedged), which also acts as the Australian Prudential Regulation Authority (APRA)’s performance test international fixed income benchmark for superannuation funds.

The index houses over 30,000 treasury, government, corporate and securities bonds from more than 70 countries and 25 currencies.

The ETF provider said the fund is designed to act as a “core portfolio building block” for investors to diversify their exposure across several risk profiles, as well as address the surge in investor demand and appetite for cash and fixed income solutions as global monetary policy continues through an easing cycle.

According to Betashares, WBND also implements “TOFA hedging, a specialised structure that aims to deliver more efficient after-tax outcomes and smoother cash distribution profiles to Australian investors”.

“Betashares has led the way in opening more parts of the fixed income universe with the provision of institutional grade investment solutions,” Betashares chief executive, Alex Vynokur, said.

“We’re proud of our ability to offer high quality investment solutions that are designed for the unique needs of Australian investors and asset allocators.

“Our market leadership in cash and income ETFs allows us to leverage our scale and understanding of Australian investors to help them meet their wealth creation goals. To that end, WBND represents a core building block for Australian investors seeking exposure to a global portfolio of bonds.

“WBND is the only ETF that tracks the official APRA benchmark for the asset class and is constructed with more efficient after-tax outcomes, as well as smoother cash distribution profiles, for Australian investors in mind.”

According to Betashares, cash and fixed income ETFs have generated over $9.9 billion in net flows over the financial year, with over $14 billion in total funds under management (FUM).