BetaShares has launched the BEAR Fund on the ASX – the first managed fund which allows investors to profit from, or hedge against, a decline in the value of the Australian equities market.
The BEAR Fund will trade under the ASX Code “BEAR” and seeks to generate returns that are negatively correlated with the movements in the S&P/ASX 200 Index. More simply, the BEAR Fund is expected to go up when the Australian share market goes down.
The fund employs a simple structure, investing all of its assets in cash and cash equivalents and obtaining short exposure via futures contracts (ASX SPI 200 futures).
In addition, the fund will be quoted on the ASX, which provides investors with the ability to buy and sell units during the course of the trading day, just like any share. To mark the occasion of the launch of the BEAR Fund, BetaShares “opened the market” by ringing the bell at the ASX on Tuesday.
12 July 2012
