GQG plans active ETF as it pursues advisory market
GQG has brought forward its plans to launch an exchange traded fund (ETF) as it increases it focus on the adviser market.
Speaking to Money Management, managing director for Australia and New Zealand, Laird Abernathy, said it had fast-tracked plans for an active ETF, which it expected to launch by the end of the year.
“We are a nascent player in the intermediated market at the moment. We were available on platforms since March 2020 and I think it takes three years to get traction in the advisory space.
“We have seen considerable growth from $160 million to $860 million but that is still small compared to the larger players, we would love to achieve that growth again. So we still feel there are plenty of opportunities and we want to capitalise on that. An active ETF would help us to have an unlisted and listed offering.”
An active ETF would also be attractive for advised self-managed super funds clients as the feedback was that it was “labour intensive” for them to invest in the fund.
“We have fast-tracked the idea as we want to be as frictionless as possible for advisers, licensees and investors.”
The firm listed on the Australian Securities Exchange (ASX) last year in a float which raised $1.18 billion and Abernathy said this had also helped to raise the firm’s profile with the adviser market.
“We wanted to reach the adviser market by getting on platforms but the ASX presence fasttracks that and we are seeing a lot more interest since the listing. The firm is coming to prominence among larger adviser groups.”
Although the firm is headquartered in the United States, Abernathy said it chose to list on the ASX rather than the New York Stock Exchange as the requirements were less onerous, which would free up time for the firm to focus on its investment activities.
“We chose to list in Australia rather than in the US as the firm has a natural affinity with Australia, our first global institutional client was an Australian superannuation fund and [chief executive] Tim Carver used to run Pacific Current Group.
“We didn’t want the listing to be a distraction as we want to remain focused on the business and the ASX is less onerous than in the US.”
AUTHOR
Laura Dew
Recommended for you
Insignia Financial has reported net inflows of $448 million into its asset management division in the latest quarter, as well as popularity from advisers for its MLC managed accounts.
With ASIC questioning the dominance of research houses when it comes to retail usage of private market funds, a research house has shared how its ranking process sits alongside ASIC’s priorities.
Two Australian active fund managers have been singled out by Morningstar for their ability to achieve consistent performance and share price growth in the past 12 months.
Pinnacle Investment Management has expanded its private market coverage, forging a strategic partnership with a private markets manager via a 13 per cent stake acquisition.
