Schroders Australia has launched two active ETFs and plans to further expand its listed range over the year ahead.
The Schroder Global Equity Alpha Fund – Active ETF and Schroder Australian High Yielding Credit Fund – Active ETF will complement the firm’s existing two active ETFs and double the size of the active range to four products.
Its first, Schroder Real Return Active ETF, was launched in 2016, followed by the Schroder Absolute Return Income Active ETF in 2019.
The new Global Equity Alpha Fund is an unconstrained, diversified global equities fund targeting consistent outperformance with index levels of risk. Its portfolio includes long-term structural opportunities and short-term tactical ideas from a global selection of over 4,000 global stocks.
The second, Australian High Yielding Credit Fund, invests in domestic corporate and financial credit across sectors, issuers, maturity, ratings grade and capital structure dimensions, including subordinated debt. It combines an attractive yield with the capital protection of institutional grade fixed income.
Schroders Australia CEO, Simon Doyle, said: “These recent active ETF launches demonstrate how we continue to position ourselves to meet the needs of investors, providing access to products with successful long-term track records that have not been readily accessible to the wider investor community until now.
“In this era of regime shift and increasingly unpredictable times, we have carefully curated a suite of products that can benefit investor portfolios. We are excited to bring more active ETFs to market this year.
“The benefits of active ETFs are better understood by the market today, including accessibility with no minimum investment amount, liquidity and full transparency. Through Schroders’ active ETF offerings, investors can access decades of proven active management experience across domestic and global markets.”
Earlier this year, Franklin Templeton unveiled the Martin Currie Real Income Fund – Active ETF. Based on the Martin Currie Real Income Fund, the ETF structure enables Australian investors to access the same long-term growth and attractive income characteristics, the firm stated.
The ETF invests in sectors that have low economic sensitivity which typically exhibit lower total volatility than the broader market and high-quality assets with pricing power and inflation protection.
Felicity Walsh, managing director of Franklin Templeton Australia, said the new product complemented its existing range of active ETFs, such as the Franklin Australian Absolute Return Bond Fund (Managed Fund) and the Franklin Global Growth Fund (Managed Fund).
