Alex Vynokur
BetaShares, a leading exchange traded fund provider, yesterday announced its High Interest Cash ETF (ASX code ‘AAA’) has been upgraded to a ‘Recommended’ rating by Lonsec.
AAA, which has been one of the fastest growing funds in the Australian ETF market, aims to provide investors with exposure to competitive interest rates from Australian cash accounts, and seeks to generate a return that exceeds the 30 day Bank Bill Swap Rate after fees and expenses. AAA is BetaShares’ most popular fund with over $700 million in funds under management.
In order to develop its ratings, Lonsec reviews a fund manager’s investment process, people and resources, liquidity, fees, performance and the risk associated with the fund. The ‘Recommended’ rating is the second highest investment rating able to be awarded by Lonsec.
In its review of the fund, Lonsec noted that AAA was an efficient way to gain liquid exposure to the Australian cash market. It also highlighted the pricing offered by the fund as particularly advantageous compared to other cash alternatives in the market.
Alex Vynokur, BetaShares’ Managing Director, said “AAA provides investors with simple, liquid access to Australian cash accounts with competitive rates, without the hassle of administrative paperwork or locking up funds for a set period,” said Mr Vynokur.
“It’s great to see independent recognition of the strategy through this ratings upgrade,” he said. “We believe AAA presents a strong option for investors and advisers looking for a competitive offering relative to the traditional ‘at-call’ accounts when considering where to allocate the cash portion of a portfolio.” AAA is now available on most investment platforms in Australia.