K2 Asset Management will launch the second ‘active exchange traded fund’ in the Australian market after applying to have the fund admitted to trading status on the Australian Securities Exchange (ASX) market.
The new fund — the K2 Global Equities Fund — will be an ASX-listed version of its existing K2 Global High Alpha Fund, which was launched in December 2009 — and will traded on the ASX under its AQUA rules.
The fund has yet to receive approval from the ASX to be traded with K2 taking pre-quotation applications with an expected trading date from the middle of next month according to information released by K2 to the ASX.
The Product Disclosure Statement (PDS), released yesterday by K2 , stated that units in the fund would cost $2.50 per unit with no minimum investment amounts and the fund would invest in listed Australian and international equities, and may access them via exchange traded and derivative instruments, as well as in cash.
The PDS also stated the fund would charge no establishment, contribution, withdrawal or exit fees but would charge a 2.05 per cent per annum investment management fee with a 0.06 per cent per annum Responsible Entity Fee and a 0.5887 per cent per annum expense recovery fee.
These fees would total 2.70 per cent per annum with an additional performance fee of 20.5 per cent of the amount by which the net asset value exceeds a high water mark.
The rollout of the K2 fund follows that of Magellan which released an ASX quoted version of the Magellan Global Fund in early March. Like that fund K2 will also oversee the operation and management of the fund and be its own market maker.
