Key Highlights

  • BSUB holds 100% of its portfolio in bonds issued by Australia's major banks, with all exposure concentrated domestically.
  • The fund's top 10 holdings account for 82.59% of the portfolio across 13 total companies.
  • BSUB reported an annual Yield of 4.74%, with September's distribution recorded at $0.115 per unit, up from $0.110 in August.
  • Units outstanding were listed at zero and fund size data showed $0.00, reflecting limited disclosed scale at the time of review.

Fund Overview

BSUB, admitted to the ASX on 8 May 2024, is designed to track the Solactive Australian Major Bank Subordinated FRN index before fees and expenses. Classified under the Unconstrained Fixed Income category, the fund carries a management fee of 0.29% per annum, and its Investment approach is built around subordinated Debt instruments issued by Australia's largest banking institutions.

Holdings Composition

The portfolio's concentration is notable: 100% of Assets sit in bonds, with no cash, Equity or other asset classes reported. Thirteen companies made up the total holdings, and the top 10 alone represented 82.59% of the fund, leaving only 17.40% spread across remaining positions.

Leading holdings included ANZ Group Holdings 6.2699% notes (9.79%), Australia & New Zealand Banking Group 5.8442% notes (8.95%) and Westpac Banking Corp 6.613% notes (8.91%), alongside further exposure to National Australia Bank and Commonwealth Bank of Australia subordinated instruments.

Geographic Concentration

Unlike more diversified Credit funds, BSUB's geographic exposure is entirely domestic, with Australia accounting for 100.00% of the portfolio. This reflects the fund's specific mandate to capture subordinated debt issued by the country's major banking groups rather than a broader international credit universe.

Distribution Profile

BSUB reported an annual yield of 4.74% on an interim distribution basis. Recorded distribution amounts moved from $0.050 in May to $0.103 in June, $0.099 in July, $0.110 in August and $0.115 in September, indicating a gradual increase over the period.

Ex-date, Record Date and payment date for the most recent distribution were set at 1 September, 2 September and 16 September 2026.

Conclusion

BSUB offers investors a narrowly defined, domestically concentrated exposure to subordinated debt issued by Australia's largest banks, distinguished by its full weighting to bank-issued bonds and its comparatively small number of underlying holdings. The steadily rising distribution figures across the months reviewed, paired with an annual yield near 4.74%, characterise a fund whose return profile is closely tied to the credit conditions of Australia's major banking sector specifically, rather than the broader fixed income market.