Ellerston Capital rebrands fund to complex ETF
Ellerston Capital has changed the name of its Ellerston Asia Growth Fund (Hedge Fund) to an ETF.
Following the change, the $36 million fund will now be known as Ellerston Asia Growth Fund Complex ETF.
The fund invests in a portfolio of 20–50 Asian companies, with a focus on high-quality companies with superior growth characteristics, sustainable earnings and quality management. Over the past year, it has returned 31.4 per cent versus returns of 23.8 per cent by its MSCI Asia ex Japan benchmark.
In an ASX statement, the firm said: “The name change was made in response to revised naming conventions for exchange traded products set out by ASIC in ASIC Information Sheet 230. The fund’s investment objective, strategy, fees and costs, and other key features remain unchanged.
“The fund constitution has been updated to reflect the name change. Neither the terms of the units nor your rights as an investor in the fund have changed.”
Information Sheet 230 states that product names need to clearly reflect the nature of the product, combined with the use of defined labels, to alert retail investors who may not receive a product disclosure statement (PDS) before investing.
Ellerston’s use of the word “complex” indicates the product involves investment strategies that may be more difficult for retail investors to understand such as short selling, derivatives or leverage to make a financial investment. It is not intended to be a proxy for the ETF’s risk profile.
In the case of Ellerston, the product uses derivatives and potentially OTC derivatives to gain exposure to some listed equity holdings. It will also hold cash and cash-like investments and invest into foreign exchange spot and forward contracts for risk management purposes.
Ellerston, which was launched in 2002, runs 16 funds across equities, fixed income and alternatives, but this is the first one to be branded as a specific ETF.
AUTHOR
Laura Dew
Recommended for you
Several wealth management companies have been shortlisted in the second annual Australian AI Awards program, which champions individuals and organisations pioneering Australian AI innovation.
Women are expected to inherit US$124 trillion through the intergenerational wealth transfer, but Capital Group has found they are twice as likely to rely on social media for advice over a financial adviser.
Challenger Investment Management has raised $350 million during the offer period for its new ASX-listed investment structure.
A week after Lonsec downgraded multiple funds from Metrics Credit Partners, rival research house Zenith Investment Partners has opted to retain its ratings for the same funds.
