Aussie fund managers launch active ETFs
Two active ETFs have launched on the ASX, one investing in global equities and the other investing in Australian small caps.
The first active ETF is the Plato Global Alpha Complex ETF, an active ETF version of its Plato Global Alpha Fund, which launched on 25 November.
The fund aims to generate “all-weather alpha” by investing in value, growth and quality ideas from across global markets while also taking short positions. Companies are assessed based on their discount to fair value, sustainable earnings and organic cash flow, strong management and robust governance.
The Plato Global Alpha Fund on which the active ETF is based was launched in September 2021 and is managed by David Allen, head of long short strategies, and senior quantitative analyst Charles Lowe.
This followed the launch of the Firetrail Australian Small Companies – Active ETF which was listed on the ASX on 18 November.
This seeks to outperform the S&P/ASX Small Ordinaries index over the medium to long term after fees by investing in a concentrated portfolio of around 40 Australian small-cap stocks.
It is described as being suitable as a minor or satellite allocation for consumers who are seeking capital growth with a high risk-return profile and is managed by portfolio managers Patrick Hodgens, Matthew Fist and Eleanor Swanson.
Both Plato and Firetrail are boutique affiliates of Pinnacle Investment Management.
In the latest Betashares ETF review, the ETF provider said there were only four new ETFs launched in October while an active ETF focused on climate transition closed.
Active ETFs launched this year so far include a range of four active ETFs from Fidelity, an active bond ETF from Franklin Templeton, and two systematic active ETFs from Macquarie.
Earlier this year, Money Management wrote how there is a growing divide between index-tracking ETFs and active ETFs, as active ETFs reported $1 billion in outflows during 2023.
The attraction of launching an active ETF is for asset managers to broaden their investor reach with more investors, such as those in self-managed super funds (SMSFs) able to easily access the funds in an ETF format.
AUTHOR
Laura Dew
Recommended for you
Bentham Asset Management has become the latest fund manager to expand its distribution team as it reports increased interest in its credit strategies.
L1 Capital, which is in talks to merge with Platinum Asset Management, has indicated it will be voting against a deal to convert a Platinum LIC into an ETF.
Evidentia Group has hired a head of quantitative investments who joins the investment firm and managed account provider from AMP.
Fidelity International has worked in tandem with Australian wealth manager Emanuel Whybourne & Loehr to launch an actively managed global equities strategy aimed at financial advisers.
