Fund manager, Betashares, has announced it has launched the Betashares Australian Cash Plus Fund (ASX: MMKT) on the ASX.
MMKT provides exposure to a diversified portfolio comprising Australian dollar cash and short-term money market securities. The money market securities in the portfolio mostly have three months or less to maturity and are issued by investment-grade entities. The Fund will aim to generate a yield (before fees and expenses) in excess of the Bloomberg AusBond Bank Bill Index, with distributions paid monthly.
As the Fund trades on the ASX like any share, MMKT provides investors with ready liquidity in the form of T+2 settlement, allowing investors to obtain enhanced yields on their cash while maintaining a high degree of capital stability and without needing to lock up their money for extended periods.
The Fund joins Betashares’ leading range of intelligent cash and fixed income investment solutions, including the Betashares Australian High Interest Cash ETF (ASX: AAA), which has grown to approximately $3.5 billion in funds under management since its launch in March 2012.
MMKT launches at a particularly relevant time for enhanced cash solutions globally. Money market funds in the United States have grown significantly over the past year, as investors have sought to benefit from rising interest rates and preserve capital amid volatility in other asset classes. Data from ICI and Bloomberg shows that U.S. money market assets have grown from around US$4.7 trillion to US$5.7 trillion this year, and over the past 12 months, cumulative flows to these funds totalled around US$1.1 trillion.
Betashares CEO, Mr Alex Vynokur, said the new addition to Betashares’ cash and fixed income range is well suited for investors looking to make their cash work harder within their portfolio.
“Investors and their financial advisers will be able to use MMKT to gain access to a compelling solution for the cash allocation of their investment portfolios. The Fund provides access to high quality securities with enhanced yields that are generally only available to institutional investors,” he said.
Australian ETF Investors Passes Two Million
Additionally, Betashares has released new industry research which showed that the number of Australian investors holding ETFs in their portfolio passed two million in 2023.
The 2023 Betashares/Investment Trends ETF Report also found that an additional 310,000 Australians intend to invest in ETFs for the first-time next year, while an existing 1.39 million existing ETF investors intend to reinvest more during 2024.
Vynokur, said, “Despite another volatile year for markets, and declining investor sentiment, the Australian ETF industry has remained highly resilient, with more investors than ever before investing in ETFs and doing so for a greater part of their portfolio.”