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Fund size
$1.74B
OCT 2026
Total cost ratio
0.55%
per year
Distributions
Monthly
Since inception
9.0 yrs
NOV 2017
The Fund invests in an actively managed portfolio of diversified credit securities and is expected to allocate tactically between these investment types.
US equity 0.00%Non-US equity 0.00%
| Asset class | Net % | Long % | Short % |
|---|---|---|---|
| Equity | 0.00 | 0.00 | — |
| Bond | 95.46 | 95.46 | — |
| Cash | 0.00 | 0.00 | — |
| Other | 4.54 | 4.54 | — |
| Holding | % Weight | First bought | Market value | Currency | Units held | Sector | Country | |
|---|---|---|---|---|---|---|---|---|
| Australia & New Zealand Banking Group Ltd. 5.8442% | 3.83 | — | 93.3M | AUD | 91.4M | — | Australia | |
| ANZ Group Holdings Ltd. 6.8043% | 3.32 | — | 80.8M | AUD | 78.7M | — | Australia | |
| National Australia Bank Ltd. 6.5239% | 3.31 | — | 80.6M | AUD | 80.2M | — | Australia | |
| Westpac Banking Corp. 6.7689% | 3.28 | — | 79.9M | AUD | 77.0M | — | Australia | |
| Commonwealth Bank of Australia 6.174% | 2.84 | — | 69.3M | AUD | 67.1M | — | Australia | |
| National Australia Bank Ltd. 5.7443% | 2.80 | — | 68.1M | AUD | 67.7M | — | Australia | |
| ANZ Group Holdings Ltd. 6.2699% | 2.79 | — | 68.0M | AUD | 66.1M | — | Australia | |
| Commonwealth Bank of Australia 6.3652% | 2.78 | — | 67.8M | AUD | 66.7M | — | Australia | |
| Kingfisher Trust 2026-1 5.2375% Mar-57 | 2.38 | — | 57.9M | — | 57.6M | — | — | |
| Westpac Banking Corp. 5.9916% | 2.30 | — | 56.0M | AUD | 54.6M | — | Australia |
Fund (NAV) Market price
1M
1.4
3M
1.1
6M
0.2
YTD
9.4
1Y
12.1
3Y
9.4
5Y
3.1
| Period | Fund (NAV) % | Market price % | Before fees % | Rank in category |
|---|---|---|---|---|
| 1 month | 1.38 | 1.49 | 1.43 | 21 / 133 |
| 3 months | 1.09 | 1.08 | 1.23 | 7 / 129 |
| 6 months | 0.15 | 0.24 | 0.43 | 41 / 128 |
| Year to date | 9.41 | 9.32 | 9.91 | 32 / 127 |
| 1 year | 12.14 | 12.04 | 12.75 | 29 / 120 |
| 3 years p.a. | 9.45 | 9.46 | 10.05 | 48 / 92 |
| 5 years p.a. | 3.09 | 3.11 | 3.66 | 27 / 78 |
Returns to 31 OCT 2026, periods of 3 years and longer annualised. Rank is the percentile in the Morningstar category at 30 SEP 2026 (1 = best) over the funds ranked.
Total Capital
2018
3.5
2019
4.5
2020
3.6
2021
3.9
2022
0.4
2023
7.1
2024
6.5
2025
5.8
| Year | Total % | Capital % | Rank in category |
|---|---|---|---|
| 2025 | 5.81 | -0.60 | 80 / 117 |
| 2024 | 6.53 | 1.10 | 28 / 99 |
| 2023 | 7.15 | -1.20 | 100 / 103 |
| 2022 | 0.36 | -1.03 | 6 / 108 |
| 2021 | 3.91 | 1.27 | 9 / 106 |
| 2020 | 3.65 | 0.19 | 42 / 97 |
| 2019 | 4.51 | 2.09 | 41 / 90 |
| 2018 | 3.55 | -1.15 | 14 / 72 |
FY19
6.7
FY20
1.1
FY21
5.5
FY22
-1.4
FY23
5.5
FY24
7.1
FY25
5.5
FY26
4.7
| Financial year | Total % |
|---|---|
| Financial year to date | 1.86 |
| Year to 30 JUN 2026 | 4.72 |
| Year to 30 JUN 2025 | 5.50 |
| Year to 30 JUN 2024 | 7.14 |
| Year to 30 JUN 2023 | 5.52 |
| Year to 30 JUN 2022 | -1.42 |
| Year to 30 JUN 2021 | 5.48 |
| Year to 30 JUN 2020 | 1.15 |
| Year to 30 JUN 2019 | 6.68 |
| 1 year | 3 years | 5 years | 10 years | |
|---|---|---|---|---|
| Alpha | 0.09 | 1.41 | 1.10 | — |
| Beta | -0.02 | 0.01 | 0.04 | — |
| R-squared | 0.62 | 0.16 | 1.52 | — |
| Standard deviation | 10.79 | 9.29 | 10.75 | — |
| Sharpe ratio | 0.18 | 1.54 | 0.50 | — |
| Sortino ratio | 0.21 | 3.11 | 0.69 | — |
| Tracking error | 4.30 | 5.01 | 6.51 | — |
| Information ratio | 1.04 | 0.00 | 0.71 | — |
| Upside capture % | 42.69 | 38.77 | 33.79 | — |
| Downside capture % | -32.22 | -41.43 | -16.10 | — |
| Maximum drawdown % | — | -0.14 | -2.72 | — |
Measured against Bloomberg Gbl Agg Corp TR Hdg AUD with RBA Bank accepted Bills 90 Days as the risk-free rate, to 31 OCT 2026. Maximum drawdown is on gross returns at the latest quarter end.
Risk score
4.5
Morningstar Portfolio Risk Score at 30 SEP 2026.
2024
0.5
2023
0.6
2022
0.5
2021
0.3
2020
0.3
2019
0.3
2018
0.4
2017
0.4
| Year | Per unit ($) |
|---|---|
| 2024 | 0.5439 |
| 2023 | 0.5870 |
| 2022 | 0.5206 |
| 2021 | 0.3099 |
| 2020 | 0.2562 |
| 2019 | 0.2907 |
| 2018 | 0.3519 |
| 2017 | 0.4042 |
| Ex Date | Per unit ($) |
|---|---|
| 1 OCT 2026 | 0.0463 |
| 1 SEP 2026 | 0.0479 |
| 3 AUG 2026 | 0.0476 |
| 1 JUL 2026 | 0.0505 |
| 1 JUN 2026 | 0.0448 |
| 1 MAY 2026 | 0.0456 |
| 1 APR 2026 | 0.0473 |
| 2 MAR 2026 | 0.0401 |
| 2 FEB 2026 | 0.0424 |
| 2 JAN 2026 | 0.0466 |
| 1 DEC 2025 | 0.0389 |
| 3 NOV 2025 | 0.0432 |
Average
ESG risk score
17.40
0.51% of assets are in companies with high or severe controversies.
Carbon risk score
6.56
Category average 8.56
Announcements
| DATE | TIME | HEADING | PAGES |
| Price sensitive |
The HBRD ETF pays monthly income from a diversified mix of hybrid securities, subordinated bonds, senior bonds, and cash, offering flexibility to adjust allocations based on market conditions. It was traditionally a hybrid portfolio, but this has morphed into more traditional fixed income over time.
HBRD was traditionally a Hybrid portfolio, however in recent times, the manager, Coolabah Capital run by Chris Joye has moved more towards debt securities (senior & subordinated debt) holding the view that after a very good run for Hybrids, they have become relatively less attractive than lower risk debt.
Yesterday, Suncorp announced a new hybrid offer launching the Capital Notes 5, looking to raise approx. $300m in Tier 1 equity through the deal. The offer includes a new money portion, though holders of Suncorp Capital Notes 2 (SUNPG) will also have the opportunity to roll and likely make up the bulk of the deal given the new offer is smaller (at this stage) than the $375m Capital Notes 2.
There has been a flurry of new issuance across the Hybrid market in recent months, starting with Westpac at the end of 2023, ANZ first off the mark in 2024, followed by Bendigo & Adelaide Bank & IAG more recently. All are typical Tier 1 hybrid securities with the usual conditions, something we wrote about here. Below, we’ve provided an overview of each.
The new Westpac Hybrid Note (WBCPM) came onto the market yesterday and closed at $101.60, an excellent start to trade, which highlights how margins have moved in the past few weeks. The 10th WBC Hybrid was issued on a margin of 3.1% over the 90-day bank bill rate.
Westpac launched a new Hybrid on Monday to replace an existing security due to be called in July of 2024 (WBCPI). The new money book closed early due to demand and on the last book update, they had ~$3.4bn worth of bids for both new money and the reinvestment of the existing (WBCPI). They initially said they would raise $750m which is the usual line, however, we suspect they will print north of $1.5bn, given the existing WBCPI has $1.4bn on issue.
Media reports are suggesting a new hybrid security from Westpac will be launched next week to raise $1.5bn in tier 1 capital, around 18 months since they tapped the hybrid market under the Capital Notes 9 offer (WBCPL), which was issued at a margin of 3.40%. The deal will be used to replace an existing hybrid on issue, the Westpac Capital Notes 6 (WBCPJ) which is due to be called in July of 2024.
APRA released a discussion paper last week looking at the current structure of tier 1 hybrid securities, with a specific focus on how they absorb losses in times of stress. There has been some press on this, with Chris Joye from Coolabah writing in the AFR on the topic here. There are multiple parts to this and a lot of water to go under the bridge until something might change, however, our initial thoughts are as follows, and sorry, it’s a bit dry!
MM remains positive on Hybrid Securities
MM is long and bullish on the HBRD ETF
MM is disappointed that APRA has pushed on with their proposal wind up tier 1 bank hybrids
MM is now neutral on hybrids with spreads <2%
MM is neutral on HBRD
MM is still comfortable holding Hybrids for income
MM remains bullish on Hybrids, though margins are at the bottom of the range
MM continues to like select Hybrid securities
MM remains a comfortable holder of major bank Hybrids
MM likes the new WBCPM
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