HVST - BetaShares Australian Dividend Harvester Fund (Managed)

[Dona Ferentes]

I've been noticing ads on ASF for this. Has been around a while.
.

HVST - Australian Dividend Harvester Fund (managed fund)​

Opportunity for high income from Australian shares

Overview​

Fund objective​

HVST aims to provide franked income that exceeds the net income yield of the broad Australian sharemarket on an annual basis, along with exposure to a diversified portfolio of Australian shares.

Benefits of HVST​

• Opportunity for high monthly income​

  HVST’s income stream aims to exceed the net income yield of the broad Australian sharemarket on an annual basis, paid monthly.

• Designed for investors seeking income​

  HVST was specifically created to meet the challenges facing investors for whom income is a high priority, such as SMSF and retiree investors.

• Diversified exposure to Australian equities​

  HVST provides exposure to a diversified portfolio of Australian shares

 

[Dona Ferentes]

established June 2022

Net assets* ($A)	$192,325,565
Units outstanding* (#)	15,331,365
Management fee and cost** (p.a.)	0.72%
Distribution frequency	Monthly
Distribution reinvestment plan (DRP)	Full or partial participation available

Dividend yield 7.1 per cent, 80% frankwd

 

[Belli]

I've been noticing ads on ASF for this.

A riveting share price performance too according to the ASX charts.

 

[divs4ever]

A riveting share price performance too according to the ASX charts.

View attachment 168447

indeed , it has been a bit of a capital vacuum , however i participate in the DRP and will probably not buy any extras until i feel the market has bottomed out

the div. payout in recent years in roughly 84 cents a year , which isn't so flash if the share price continues the down-trend

very hard to do a quick NTA as most of the portfolio changes more than three times a year ( according to the ETF provider )

CODE	COMPANY	ASSET
A200	BetaShares Australia 200 ETF	27.94%
CBA	Commonwealth Bank of Australia	11.20%
QRE	BetaShares Australian Res Sect ETF	6.27%
CSL	CSL Ltd	5.82%
FMG	Fortescue Ltd	4.90%

Top 10 Holdings

CODE	COMPANY	ASSET
WES	Wesfarmers Ltd	4.23%
TCL	Transurban Group	3.45%
TLS	Telstra Group Ltd	3.22%
WDS	Woodside Energy Group Ltd	2.81%
COL	Coles Group Ltd	2.45%

one might ask if apart from the monthly divs this has any extra attractions over say ARG , AUI , AFI ( i hold none of those 3 LICs )

i notice they have recently added another 'in-house ETF ' possibly to disguise the seasonal REIT buying )

 

[divs4ever]

OOPS !!

BETASHARES AUSTRALIAN RESOURCES SECTOR ETF​

CODE	COMPANY	ASSET
BHP	BHP Group Ltd	43.93%
WDS	Woodside Energy Group Ltd	10.77%
RIO	Rio Tinto Ltd	8.68%
FMG	Fortescue Ltd	7.37%
STO	Santos Ltd	3.97%

Top 10 Holdings

CODE	COMPANY	ASSET
NST	Northern Star Resources Ltd	2.68%
S32	South32 Ltd	2.61%
MIN	Mineral Resources Ltd	1.90%
PLS	Pilbara Minerals Ltd	1.83%
ALD	Ampol Ltd	1.53%

but at least the fees and portfolio turnover is lower

 

[Belli]

Wow is correct Mr @qldfrog.

This is HVST v STW (ETF tracking ASX200).

While it's each to their own, for the life I me I cannot understand why you'd put funds into HVST simply because it has an apparently attractive yield. There must be something about it I'm missing but I am more than OK in missing it.

 

[divs4ever]

Wow is correct Mr @qldfrog.

This is HVST v STW (ETF tracking ASX200).

View attachment 168451

While it's each to their own, for the life I me I cannot understand why you'd put funds into HVST simply because it has an apparently attractive yield. There must be something about it I'm missing but I am more than OK in missing it.

the yield was tempting , the capital depreciation came later , the compounding via the DRP takes out some of the sting

but is an excellent example of why timing your investments can be a big help

at the risk of being proven wrong ( in the future ) ,PL8 is a much better play at monthly income streams , another option is EIGA ( which i don't hold )

i will be watching HVST closer to see if they onboard more company products into this ETF ( gets a bit synthetic if you end up with an ETF full of ETFs )

 

[Dona Ferentes]

for the life I me I cannot understand why you'd put funds into HVST simply because it has an apparently attractive yield. There must be something about it I'm missing but I am more than OK in missing it.

and an annual fee of 0.72 per cent !!

 

[divs4ever]

and an annual fee of 0.72 per cent !!

that sounds OK when compared to a managed fund , but are they getting the runs on the board ( the share price suggests not )

i am guessing they are losing capital in the rapid churning of portfolio holdings

will using in-house ETFs stop the capital destruction

 

[qldfrog]

that sounds OK when compared to a managed fund , but are they getting the runs on the board ( the share price suggests not )

i am guessing they are losing capital in the rapid churning of portfolio holdings

will using in-house ETFs stop the capital destruction

In house ETF will allow them to hide performances and give excuses

 

[Dona Ferentes]

In house ETF will allow them to hide performances and give excuses

I'd think there would be some "proprietary software" making allocations and trading in / out around dividend time, trying to scalp a bit of yield. And that would be a messy operation, especially as it is an open end ETF with money flowing in and out on a daily basis.

not a fan.

 

[Belli]

I'd think there would be some "proprietary software" making allocations and trading in / out around dividend time, trying to scalp a bit of yield. And that would be a messy operation, especially as it is an open end ETF with money flowing in and out on a daily basis.

not a fan.

Info on this product from the ASX web-site. Strange. Difficult not to look at this. It's akin to rubber necking at a car crash.

 

[InsvestoBoy]

A riveting share price performance too according to the ASX charts.

Not to defend BetaShares, I'm not a fan, but it's an income focused fund, one should look at total return to account for the dividend payouts.

The price chart without dividends included is similar to looking at the value of an annuity in the "annuitization phase". https://www.investopedia.com/terms/a/annuitizationphase.asp

While it's each to their own, for the life I me I cannot understand why you'd put funds into HVST

It only does what it says on the tin, tries be in the stocks that it thinks will pay the highest yield each quarter. One attraction for some might be that it pays the income out monthly instead of the quarterly (or annual) cadence of some other funds.

Whether that's a good strategy which provides value for the fee (or not) is up to the due diligence of investors.

There must be something about it I'm missing but I am more than OK in missing it.

DJW is another income focused product (although it uses a different strategy of covered calls to try and deliver income), HVST has done better since its inception but you can see their performance of these types of strategies is largely in line (no free lunch). Some discrepancies due to closed-end status of DJW vs open-ended status of HVST.

 

[Gunnerguy]

I was in HVST when it first started (about 12 years ago ????) It was lovely getting something like 3% yield quarterly (yes quarterly) but capital value fell about 10% annually. I was in for about 18 months and pulled out in about 2014. The capital decline was just shocking !!!
Glad I pulled the plug years ago.

 

[divs4ever]

Info on this product from the ASX web-site. Strange. Difficult not to look at this. It's akin to rubber necking at a car crash.

View attachment 168467

now i am guessing the A200 holding is the wholesale version which pays monthly , am not totally OK with that , but it was a real capital burner without the A200 holding as 'a core holding ' ( to help guarantee a monthly income to the ETF )

now i was waiting for a BIG crash in the market before infusing more cash into this ( the current holding is DRPed ) so the increased shares partly offsets the capital destruction

i also find the current holding rather confusing , surely CSL isn't a high yield stock ( unless you bought it yonks ago )

caution because HVST has a rapid turnover of holdings it will always be a high fee instrument , and maybe a managed ( ASX-listed ) fund will be a viable alternative

i hold HVST

 

[monkton]

PL8 is similar though pays monthly I think. Has performed better than HVST. Like @Gunnerguy I got into HVST when it started but watched the share price drop & got out on an up day. Word was HVST was returning capital to meet dividend payments. Wouldn't touch either HVST or PL8 with a barge pole though the later seems to have a big following.