Key Highlights

  • The fund is about $719.97 million in size and holds 170 companies and issuers.
  • Cash and Money Market instruments make up 78.66% of the portfolio.
  • The management fee is 0.18%, and the listing shows no annual yield.
  • Canada, Singapore and New Zealand together account for about a third of the holdings, reflecting a broad international mix.

Betashares Australian Cash Plus Active ETF (ASX:MMKT) aims to provide a Yield above the Bloomberg AusBond Bank Bill Index, using a portfolio of cash and money market instruments. The units were listed at $50.08, the fund is about $719.97 million in size, and the management fee is 0.18%. The fund's objectives include preserving invested Capital and providing ready liquidity, which places it closer to a cash product than a bond fund.

Ticker

ASX:MMKT

Listed price

$50.08

Fund size

$719.97 million

Management fee

0.18%

Benchmark

Bloomberg AusBond Bank 0+Y TR AUD

Holdings

170 companies

Portfolio make-up

Cash and money market instruments make up 78.66% of the fund, with bonds at 20.54% and other Assets at 0.80%. The geographic spread is Australia at 58.57%, Canada at 13.22%, Singapore at 11.52%, New Zealand at 7.05% and the Netherlands at 5.29%. The top ten holdings make up 11.43% of the portfolio, and the largest include UBS Australia, United Overseas Bank Sydney Branch, Royal Bank of Canada Sydney Branch and Kiwibank.

Because the fund is active, the mix between cash and short bonds can move as the manager adjusts for yield and liquidity.

Income and costs

The management fee is 0.18%. The listing shows no annual yield, though the fund's objective is to exceed the bank bill benchmark after fees. Income is therefore linked to money market rates, and the difference from the benchmark will depend on the manager's decisions.

Risks to weigh

Although cash-like funds are less volatile than bond funds, the portfolio includes some bonds and international bank paper. Those holdings add Credit and currency considerations, and an active approach means results may fall short of the benchmark. The objective of preserving capital does not guarantee that the unit price will not fall.

Final Word

The Betashares Australian Cash Plus Active ETF targets a return above bank bills through an actively managed cash portfolio with some international bank exposure. Its unit price is designed to be stable, but investors should weigh the manager's choices and the added credit exposure against that goal.