Equity Trustees (EQT) has partnered with Eight Bays Investment Management to create a global active exchange traded fund (ETF).
The EQT Eight Bays Global Fund would use offshore exchange traded funds to provide investors in Australia with access to growth from sectors not available locally, such as IT, cyber security, communications services, medical devices and robotics.
The objective of the fund was to deliver outperformance of 2% to 3% a year over the benchmark of the MSCI All Countries World Index (ACWI) over the medium term, by selecting a portfolio of industry ETFs that provided exposure to companies possessing long-term sustainable growth prospects that exceed that of the broader market.
According to FE Analytics, the MSCI ACWI had an annualised return of 15.17% over the last five years to 30 June, 2021.
Performance of MSCI ACWI over five years to 30 June 2021 (overall)
Darren Thompson, EQT head of asset management, said the rapidly growing and highly liquid US$5 trillion ($6.8 trillion) ETF market was an efficient and effective way to invest in these industries.
He said the new fund had been developed specifically with charities and for-purpose organisations in mind.
“More of the organisations and individuals that Equity Trustees serves are seeking global investments that can grow and diversify their capital,” Thompson said.
“We believe it represents an excellent opportunity for investors to access new markets with less stock specific risk.”
Chris Haynes, EQT head of equities and the team from Eight Bays Investment Management had been working on the concept for the last two years.
“We have spent considerable time in preparing and testing the Global Fund strategy, which is consistent with, and complements the successful investment principles employed in our domestic equity products,” Haynes said.
“We believe this is an innovative way to achieve strong and consistent investor outcomes.”
Eight Bays Investment Management was based in Sydney and established in 2019 by Richard Newton, Charles Cropper and George Clapham.
Industry Sectors Covered by The EQT Eight Bays Fund