BlackRock Australia has announced the launch of the iShares 15+ Year Australian Government Bond ETF (ASX: ALTB) with a management fee of 0.15%. This is part of the firm’s commitment to expand its iShares product suite, offering Australian advisers and investors additional low-cost fixed income building blocks.
The iShares 15+ Year Australian Government Bond ETF (ASX: ALTB) is designed to provide Australian investors with a targeted exposure to long-duration Australian Treasury and semi-government bonds.
Australian investors and advisers may consider ALTB for portfolio diversification, as long-duration bonds can typically serve as a hedge during equity market downturns. Benchmarked to the Bloomberg AusBond Govt 15+ Year Index, ALTB is the longest duration exposure available within the Australian iShares product range.
Chantal Giles, Head of Wealth, BlackRock Australasia said, “With the introduction of ALTB, BlackRock is expanding its local iShares product range to provide Australian advisers and investors with more precise fixed income exposures.
“We expect ALTB to be a complementary exposure for advisers and clients looking to access a high-quality diversification option that will add defensive benefits to their whole portfolios. The transparency, liquidity, and portfolio efficiency of the bond ETF structure also allows for precise allocation between Australian and global interest rate regimes.”
Tamara Stats, iShares and Index Investments Specialist, BlackRock Australasia said, “With interest rates expected to remain higher for longer in Australia, it is pertinent for multi-asset investors to consider adding more specific parts of the yield curve within their fixed income allocations. The addition of a long-duration exposure like ALTB can be particularly relevant for those positioning for lower term rates.
“ALTB offers exposure to a portfolio of long-duration AAA-rated bonds, which have a track record of performing well when there’s an anticipation of falling Australian interest rates. With a yield between 4.5-5% so far this year, the Bloomberg AusBond 15+ Year Index also offers a regular source of income for investors.”
ALTB is the latest addition to BlackRock’s iShares fixed income ETF stable, which boasts the broadest range of fixed income ETFs in Australia. The range provides investors with low-cost index solutions for income generation, capital preservation, or portfolio diversification.
