About the FRAR ETF
The Franklin Templeton FRAR provides investors with exposure to Australian and global, fixed income securities. FRAR is actively managed and aims to deliver returns in excess of the Bloomberg AusBond Bank Bill Index, after fees and expenses (but before taxes), over the short to medium term. FRAR seeks to deliver defensive, stable Australian dollar hedged returns.
FRAR ETF Performance Review
Year
4.66
Year
0.44
Year
1.59
Inception
2.31
Yield
Maturity
5.01
Data Current To: 17/04/2024
Our review of FRAR ETF
Actively managed absolute return fund
Predominantly a corporate bond portfolio that also has exposure to government bonds
Able to invest in up to 20% of sub investment grade securities with a minimum BB- credit rating at the time of purchase
Able to invest in up to 20% of the Fund’s NAV in securities issued by foreign issuers denominated in currencies other than the Australian Dollar. Able to exceed this limit if the fund managers deem it is the best interests of the unitholders.
The fund may hold derivatives
ESG overlay
What we like about the FRAR ETF
Actively managed
Any foreign currency holdings are hedged to AUD
Monthly income
Inception was December 2014, so the fund has a track record
Shorter dated weighted average maturity of 3.46 years as at 31 March 2024
The fund will not invest in companies directly involved in:
- The production of “Controversial Weapons”
- The manufacture of tobacco products
- Mining or extraction of thermal coal, or extraction of oil from tar sands (subject to a 10% revenue threshold)
- Gambling activities, manufacture of alcohol or producing, directing or publishing adult entertainment materials that fall into certain categories (each subject to a 10% revenue threshold)
Things to be aware of about the FRAR ETF
Relatively low yield to maturity of 5.01% as at 31 March 2024, but commensurate with the shorter dated nature of the fund
Takes some interest rate risk
FRAR ETF Investment Strategy
The investment objective of the Fund is to provide investors with access to an actively managed portfolio of fixed income strategies with an aim to deliver returns in excess of the Bloomberg AusBond Bank Bill Index, after fees and expenses (but before taxes), over the short to medium term.
FRAR ETF Share Price
What does the FRAR ETF Invest In?
FRAR is a Corporate Bond ETF.
The Fund invests in a diversified portfolio of Australian and global fixed income securities.
FRAR ETF Credit Quality
The average credit quality of the FRAR ETF is A.
A detailed breakdown of the credit quality is expressed below.
FRAR Frequently Asked Questions
What index does the FRAR ETF aim to replicate?
How often does FRAR ETF pay distributions?
When did the FRAR ETF start?
What are the net assets of the FRAR ETF?
What are the number of holdings in the FRAR ETF?
What are the management fees for the FRAR ETF?
How can I invest in the FRAR ETF?
Does the FRAR ETF have a minimum investment amount?
Are there any performance fees associated with the FRAR ETF?
FRAR ETF News
- Franklin Templeton Launches Absolute Return Bond Fund (April 15th, 2024)
About The Issuer Of The FRAR ETF: Franklin Templeton
Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. With more than 1,300 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and over AUD $2.1 trillion in assets under management as of 31 December 2023.
