iShares UBS Composite Bond ETF

Risk Classification: 2 – Conservative

Price per Unit (29 Mar 16): 106.81 [AUD]

Dividend Yield: 3.57%

Expense Ratio: 0.20%

Please refer prospectus for detailed risk disclosure

Investment Rationale:

This ETF broadly tracks the Australian medium-term government and agency bond market. We don’t expect a sharp sell-off in Australian govies due to our overall bearish outlook for riskier assets and balanced outlook by RBA on interest rates.

Below Chart Shows the generic Australian 5y Government bond yield:

aus 5y treasury

Fundamental Risk to investment:

This ETF will sharply sell off in the event of a sharp sell-off in Australian Government bonds. This is not the base case expectations.

Details of ETF:

Details on iShares website – For Live data and Prospectus