Australian ETF Manager, BetaShares, and global asset management group, Legg Mason, have launched two new income-oriented Active ETFs – EINC and RINC – on the Australian Securities Exchange (ASX).
The BetaShares Legg Mason Equity Income Fund (managed fund) (ASX: EINC) and the BetaShares Legg Mason Real Income Fund (managed fund) (ASX: RINC) are both managed by Legg Mason’s affiliate asset management firm, Martin Currie, and are based on existing award-winning strategies.
EINC aims to provide investors access to an attractive and growing income stream through exposure to a diversified portfolio of high quality Australian companies. The fund selects companies with solid earnings that can sustain higher dividends, match rises in the cost of living, and which are likely to be less volatile than the wider equity market. EINC is based upon the strategy employed by the highly rated Legg Mason Martin Currie Equity Income Fund.
RINC aims to provide investors access to a portfolio of listed companies that own ‘hard’ physical assets, such as property, utilities and infrastructure (eg A-REITs, airports, toll roads and gas grids), that deliver strong dividend income from reliable revenue streams that can grow ahead of inflation. RINC is based upon the successful strategy employed by the popular Legg Mason Martin Currie Real Income Fund.
Both EINC and RINC aim to generate an income yield above that of the S&P/ ASX 200 Index, and grow this income above the rate of inflation over the longer term.
BetaShares’ Chief Executive Officer, Alex Vynokur, says: “Until recently, exchange traded products available on the ASX have been primarily associated with passive ‘index tracking’ strategies only. Thanks to innovation in the industry, investors and their advisers now have access to a growing set of top-performing active strategies as simply as buying a share on the ASX.”
“By launching EINC and RINC with Legg Mason, we’re broadening the range of investment solutions on offer to Australians, giving them more ways to diversify their portfolios and generate income from Australian companies,” he added.
Legg Mason Managing Director, Australia and New Zealand, Andy Sowerby, says: “The need for income in investment portfolios is permanent, as investors continue to grapple with a lower yielding, uncertain environment. We expect income-oriented exposures, like the ones provided by EINC and RINC, will be particularly appealing to investors who want to diversify their risk and sources of income especially in the current volatile market environment.”
“These new Active ETFs combine proven, highly rated and award winning, investment strategies with the key benefits of exchange traded funds such as liquidity, intraday pricing, and ease of access. It’s a powerful combination provided in partnership with BetaShares, which we expect to appeal to a wide range of potential investors”, concludes Sowerby.
BetaShares and Legg Mason plan to launch further Active ETFs in 2018 under the partnership.