BetaShares has announced it will launch a number of new strategies and will retire those that have been met with limited client demand as it positions for the next decade.
BetaShares’ chief executive, Alex Vynokur, said the fund had not made any substantial changes since the launch of its first fund in December 2010.
“We believe the next 10 years will be truly transformational for the Australian exchange traded fund [ETF] industry, with continued strong growth prospects, driven by an expanding set of opportunities to help Australian financial advisers, individual investors and institutions build robust, transparent and cost effective investment portfolios,” he said.
“Hundreds of thousands of Australian investors are today adopting exchange traded funds as a core part of their investment portfolios. The industry continues to follow in the footsteps of more mature ETF markets around the globe. Given the robust growth being experienced we predict the industry will reach $100 billion in assets in 2021.”
BetaShares said it intended to launch at least five new ETFs between now and the end of the first quarter of 2021.
Changes to the existing funds included:
- The index for BetaShares FTSE RAFI US 1000 ETF would change from the FTSE RAFI U.S. 1000 Index to the S&P 500 Equal Weight Index. The ETF would change its name to BetaShares S&P 500 Equal Weight ETF, with management costs of 0.29% p.a. These changes would be effective following close of trading on 18 December, 2020;
- BetaShares Diversified Growth ETF, BetaShares Diversified Balanced ETF and BetaShares Diversified Conservative Income ETF would change investment strategy to become the first range of ethical diversified ETFs on the Australian Securities Exchange (ASX). Each ETF would offer investors an all-in-one investment solution for exposure to an ethically screened diversified multi-asset portfolio. The management costs of the above three funds would be 0.39% p.a. This change would be effective following close of trading on 15 December, 2020; and
- BetaShares Diversified High Growth ETF (DHHF), which currently provided investors with a multi-asset portfolio with a target asset allocation of 90% growth assets, 10% defensive assets, would move to utilising an asset allocation of 100% growth assets, and be renamed BetaShares Diversified All Growth ETF, the first of its kind on the ASX. DHHF’s management costs will be 0.19% p.a. This change would be effective following close of trading on 15 December, 2020.
It also said that fund closures included:
- BetaShares and AMP Capital have decided to close AMP Capital’s three funds, GLIN, RENT and DMKT.
- BetaShares has also made the decision to close its BetaShares Agriculture ETF – Currency Hedged (synthetic), and BetaShares Commodities Basket ETF – Currency Hedged (synthetic.
The last trading day for these funds would be 4 December (for AMP Capital funds) and 8 December, 2020 for the agriculture and commodities funds.
