InvestSMART active ETF debuts on ASX
InvestSMART’s first active exchange-traded fund (ETF) has debuted on the Australian Securities Exchange (ASX).
The InvestSMART Australian Equity Income Fund (INIF), which managed to exceed its target and closed at more than $30 million of fund under management (FUM), commenced trading on the ASX at a unit price of $2.50.
It would mirror the group’s existing unlisted Intelligent Investor Equity Income Portfolio, which has returned 11.5 per cent per annum since inception.
InvestSMART’s head of fund management, Alastair Davidson, noted that investors who hunted exclusively for yield-based stocks could get caught up in companies that paid well initially but had poor long-term prospects.
“We believe it is imperative to consider both the growth outlook of a company and its ability to pay dividends,” he said.
“Therefore, we focus on undervalued, cash-rich businesses with the expectation that they will produce strong cash flows to support dividends in the future.”
INIF would offer exposure to a concentrated portfolio of up to 30 Australian equities with a sustainable income, with current exposure to the banking sector of less than nine per cent compared to 22 per cent for the ASX 200.
InvestSMART said the fund was “a cost-effective solution with competitive fees and expenses of 0.97 per cent and no performance fees”.
“The launch of the active ETF will give investors access to a professionally managed, strong performance portfolio in a simple and cost-effective way,” Davidson said.
AUTHOR
Oksana Patron
Recommended for you
Former CEO of Global X ETFs Australia, Evan Metcalf, has taken up a new position at a specialist ETF provider.
BlackRock has expanded its iShares fixed-income ETF range, with a global bond fund designed as a ‘building block’ for Australian advisers.
A failure to maintain operations and governance models could prove problematic for private managers in the future as their funds grow in popularity with a retail and wholesale audience.
Russell Investments has partnered with financial advice firm Invest Blue to launch a managed portfolio offering to deliver broader private market access for Australian advised investors.
