Ausbil expands active ETF range with Candriam fund

Ausbil has launched its fourth active exchange-traded fund (ETF) of 2025, adding to a slew of active ETF launches from the firm this year.

The Candriam Sustainable Global Equity Fund – Active ETF (GSUS) joins active ETFs focused on global small-cap companies (GSCF) and listed infrastructure (GHIF), as well as a dividend active ETF (DIVI) listed in September.

According to the firm, GSUS was launched to meet growing investor demand for an actively managed portfolio of sustainable, listed equities, featuring best-of-sector companies from across the globe.

The product is a collaborative effort between Ausbil and Candriam, a global asset manager with some €156 billion in assets under management. Candriam’s philosophy, “Conviction and Responsibility In Asset Management”, underscores its interest in sustainable investing.

Both companies are subsidiaries of New York Life Investment Management LLC.

Ausbil CEO Mark Knight explained that GSUS will offer Australian investors access to Candriam’s global equity strategies through an ETF framework.

“We are excited to broaden access to Candriam’s sustainable global equity strategy, responding to the growing demand from investors seeking a more convenient and efficient way to invest in our sustainable investment solutions,” Knight said.

He commended the Luxembourg-based company’s approach to impact and sustainable investing.

“Candriam’s investment process combines company level research with top down sectoral analysis to select stocks demonstrating good environmental, social and governance (ESG) characteristics, according to Candriam’s ESG framework,” he said.

Paul Xiradis, Ausbil’s executive chairman, chief investment officer (CIO), and head of equities, also highlighted Candriam’s sustainable investment approach and stated it offers a “distinct competitive advantage” over similar products.

The fund holds certification from the Responsible Investment Association Australasia (RIAA), acknowledging its commitment to integrating ESG and sustainability objectives throughout its portfolio and stewardship practices.

Ausbil is among several ETF providers, including Schroders, PIMCO, JP Morgan Asset Management (JPMAM), and Perpetual, which have launched actively managed funds this year.

Like Ausbil, many of these firms have attributed the launch of these products to increased demand from financial advisers.

Despite the proliferation of active launches this year, a new Morningstar report has found that passive ETFs are still seeing stronger flows.

According to the report, cost is a primary factor driving the continued high flows into passive investments.

It indicated a clear distinction in pricing between active and passive ETFs. The majority of active ETFs were found to be priced between 80 and 100 basis points, with a minority exceeding 200 bps. In contrast, most passive ETFs had fees of up to 60 bps, with none priced above 100 bps.

Additionally, Morningstar suggested that traditional managers are unlikely to consistently outperform the market – a feat necessary to regain the market share lost to both ETF providers and superannuation industry funds.