Aussie equity fund launches hit decade low
Launches of Australian equity funds have reached a decade-low this year with just one fund launched so far this year.
Over the past 10 years, there were an average of seven Australian equity funds launched each year with the most popular year being 2017 when 12 funds were launched, according to FE Analytics data.
While there were still three months of the year to go, the pandemic and subsequent pressure on businesses meant firms were unlikely to be considering launching new products.
By this time last year, there had been six funds launched and nine overall. Even in the years with the smallest number of fund launches – 2013 and 2015 – four had been launched by September 2013 and three by September 2015.
The only fund launched so far this year was ECP Growth Companies in February. This was a concentrated and benchmark-agnostic fund with around 25 to 30 Australian stocks.
Since its inception in February 2020 to 31 August, 2020, the fund had returned 2.1% versus losses by the Australian equity sector of 12%.
Performance of ECP Growth Companies between February and 31 August 2020
The nine funds launched in 2019 were Antares Ex-20 Australian Equities, Ellerston Low Volatility Income Strategy, EQT Tax Aware Australian Equity, ETFS SelfWealth SMSF Leaders ETF, Invesco Australian Equity Efficient Income, IOOF Wholesale Australian Core Equities, Paradice Long Short Australian Equities, Perennial Private to Public Opportunities and Russell Investments Low Carbon Australian Shares.
The largest of these was the EQT Tax Aware Australian Equity fund which was $344 million in size, having been launched in October 2019.
Number of funds launched annually over past 10 years
|
Year |
No. of fund launches |
|
2020 |
1 |
|
2019 |
9 |
|
2018 |
9 |
|
2017 |
12 |
|
2016 |
6 |
|
2015 |
5 |
|
2014 |
6 |
|
2013 |
5 |
|
2012 |
8 |
|
2011 |
5 |
|
2010 |
8 |
Source: FE Analytics
AUTHOR
Laura Dew
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