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This product is likely to be appropriate for a consumer seeking capital preservation with a low risk/return profile. This product is unlikely to be appropriate for a consumer as a whole portfolio solution.
This product is likely to be appropriate for a consumer seeking capital preservation with a low risk/return profile. This product is unlikely to be appropriate for a consumer as a whole portfolio solution.
Find out more about iShares ETFs/BlackRock products:
https://www.blackrock.com/au/individual/products/investment-funds
Cash remains the foundation upon which portfolios are built; however, traditional investment options fail to deliver the expectations of return. With innovations in cash investments’, it’s time to rethink this asset class and put cash to work.
The traditional bedrock of
portfolio construction
Cash remains the foundation upon which investment portfolios are built. It’s a defensive asset class known for its low-risk yet low-return allocation aimed squarely at minimizing risk and mitigating volatility. Importantly, cash also provides liquidity and transparency to investors during times of market uncertainty.
Yet, given historically low investment returns on typical cash products like cash management accounts and term deposits, coupled with liquidity issues attached to term deposits, cash investments remain largely uncompetitive. Many portfolios fail to realize the true potential that cash can bring.
With recent innovations in cash investment options, it’s time to rethink this asset class.
A new approach:
3 pillars to cash investing
Although investing in cash is a good way to diversify your portfolio and give you some much-needed peace of mind, cash investments now don't provide the same level of income potential they have in the past. By taking a fresh look at the role that different cash investment options can play can help you achieve your financial goals sooner.
When it comes to looking at the options available, it’s important to think about how it will allow you to enhance your cash allocation in three important ways:
- How quickly you can access your cash (liquidity);
This will enable you to quickly access your funds, not only to free up cash for your liabilities or living expenses, but to allow you to quickly reposition funds and potentially deliver better investment returns. - How the product works (transparency);
Providing you with greater understanding of underlying assets and visibility of fees, allowing you to more effectively manage investment costs. - What returns you will receive for their investment (yield).
Yield can be enhanced by moving away from traditional cash products, yet with a continued focus on incorporating liquidity and transparency in cash investments.
Putting cash to work
Sitting in between cash management accounts and term deposits is an investment solution that offers the liquidity, transparency and yield investors are looking for - and that’s the iShares Core Cash ETF.
The iShares Core Cash ETF employs a passive investment strategy that aims to provide investors with the performance of the S&P/ASX Bank Bill index (before fees and expenses), while offering them the ability to achieve capital preservation and regular income with a diversified portfolio of high quality, short-term money market instruments.
And importantly, with the iShares Core Cash ETF being 100 per cent invested in cash and cash equivalents, the fund is truly liquid, holding investments that can easily be sold on a same day basis to meet liquidity requirements. This makes the iShares Core Cash ETF the ideal foundation of an investor’s portfolio for their essential cash allocation.
Explore iShares Core Cash ETF
- Management Fee*: 0.07%
Why iShares Core ETFs?
Low cost
At less than 1/6th of the average cost of Australian managed funds1, providing broad market exposure to help build a diversified portfolio.
Quality
iShares consistently delivers quality ETFs that clients globally rely on to invest for the future.2
Simplicity
With just two or three iShares Core ETFs, investors can easily build a broadly diversified portfolio across major asset classes.
1: Source: Morningstar, Bloomberg, as of 31 March 2016. Comparison is between the average management fee (or indirect cost ratio) of the iShares Core ETF range (0.19%) and the average indirect cost ratio of the Morningstar Australian Investment Trust universe (1.42% excluding outliers to provide a more conservative measure). The Morningstar Australian Investment Trust universe is comprised of over 2,800 open-ended funds, including Unit Trusts, Superannuation Funds, Allocated Pensions and Term Allocated Pensions. Management fee / indirect cost ratio is quoted as a percentage of annual average net assets.
2: Based on over 800 ETFs and US1.5 trillion in assets under management globally as of 12/31/17.
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This material provides general information only and does not take into account your individual objectives, financial situation, needs or circumstances. Before making any investment decision, you should assess whether the material is appropriate for you and obtain financial advice tailored to you having regard to your individual objectives, financial situation, needs and circumstances. Refer to BIMAL’s Financial Services Guide on its website for more information. This material is not a financial product recommendation or an offer or solicitation with respect to the purchase or sale of any financial product in any jurisdiction.
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