Key Highlights

  • AUDS provides magnified, geared long exposure to the Australian dollar's value relative to the US dollar rather than a fixed income exposure.
  • The fund's portfolio allocation is reported at 100% cash, with no bond or Equity holdings.
  • AUDS carries a materially higher management fee of 1.38% per annum compared to the fixed income funds reviewed.
  • The fund's most recent final distribution was $0.549, up from $0.173 two years prior but below the $1.159 level recorded in July 2020.

Fund Overview and Objective

AUDS, listed on the ASX on 24 January 2017, is classified under the Alternative - Other category with no formal benchmark. The fund's stated objective is to provide investors with a cost-effective, geared long exposure to the Australian dollar relative to the US dollar, functioning as a currency-focused vehicle rather than a traditional fixed income or equity fund.

The management fee was reported at 1.38% per annum, notably higher than the bond ETFs covered elsewhere in this review, reflecting the cost structure associated with a geared currency exposure.

Portfolio Composition

AUDS's asset allocation was reported entirely in cash at 100.00%, with its sole listed holding being a 3.60% position in DW8 Ltd, representing the balance of the fund's structure used to achieve its currency exposure objective. Fund size was reported at $24.63 million, with 3,627,293 units outstanding.

Distribution History

AUDS distributes on a final basis. Recorded distribution amounts across recent years showed variation rather than a steady trend: $1.159 in July 2020, $0.491 in July 2021, $0.173 in July 2024 and $0.549 in the most recent period, indicating that distribution levels have fluctuated considerably rather than following a consistent upward or downward pattern. The fund's annual Yield was reported at 0.00%.

Structural Considerations

As a geared complex ETF, AUDS's structure differs meaningfully from the diversified Credit and government bond funds also covered in this review. Its Standard Deviation and Beta metrics were reported at notably elevated levels relative to the fixed income funds, consistent with a fund designed to amplify currency movements rather than provide income stability.

Conclusion

AUDS occupies a distinct niche among ASX-listed products reviewed here, offering geared exposure to the Australian dollar rather than a bond-based income stream. Its distribution history has shown considerable variability across recent years, and its cost structure, cash-based allocation and elevated risk metrics reflect its design as a currency-focused, geared vehicle rather than a conventional fixed income holding.