Bringing you live news and features since 2006 

InvestSMART Active ETF debuts on the ASX

RELATED TOPICS​

Australia’s InvestSMART Group Limited has debuted its first ASX listed fund – an active ETF – designed to deliver investors income without sacrificing capital gains.

InvestSMART Group writes that the InvestSMART Australian Equity Income Fund (Managed Fund) (ASX:INIF) listing follows high investor demand during its initial application period. INIF attracted more than three times its funds under management (FUM) target, closing at more than AUD30 million FUM.
 
INIF commenced trading on the ASX today at a unit price of AUD2.50. It mirrors the group’s existing unlisted Intelligent Investor Equity Income Portfolio, which has an estimated income of 5.3 per cent, and has returned 11.5 per cent p.a. since inception, outperforming its benchmark of 7.9 per cent.
 
Commenting on the fund’s launch, InvestSMART Head of Funds Management Alastair Davidson said he was excited to see the group’s first active ETF trading on the ASX, giving every investor the opportunity to access the strongly-performing portfolio.
 
“The Intelligent Investor research team has been running a very successful equity income model for the last 17 years. The active ETF offers investors access to this model in an easy-to-buy, listed format,” he says.
 
With Australians living longer than ever before, longevity risk is one of the biggest risks facing investors today. Coupled with inflation, investors need to reassess their investment approach to avoid outliving their capital.
 
“Investors hunting exclusively for yield-based stocks can become caught up in companies that pay well initially but have poor long-term prospects,” says Davidson.
 
“We believe it is imperative to consider both the growth outlook of a company and its ability to pay dividends. 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 provides exposure to a concentrated portfolio of up to 30 Australian equities with a sustainable income, actively managed by a team that has a research track record of more than 20 years.
 
While the fund does hold some bank stocks, its exposure is currently less than 9 per cent, compared to more than 22 per cent in the ASX200. In InvestSMART’s view, having a large weighting to banks is imprudent, and in the current environment, risks in the sector are increasing.
 
INIF is a cost-effective solution with competitive fees and expenses of 0.97 per cent and no performance-based fees. The listed structure also benefits investors who are seeking simplicity and less paperwork.
 
“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 says.

Latest News

Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..
Confidence in the continuing strength of bitcoin and Ethereum is driving wider interest in altcoins and other digital assets, according..

Related Articles

Graham MacKenzie, Toronto Stock Exchange
The evolution of ETFs has been a multi-decade experience for Toronto Stock Exchange says Graham MacKenzie, managing director, Exchange Traded...
Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
Cryptocurrencies
Matteo Greco, Research Analyst at Fineqia International writes that bitcoin (BTC) ended the week at approximately USD52,150, showing a notable...
US Distribution Awards trophies
The winners of the first US ETF Distribution Awards at the Exchange conference, hosted by ETF Express and sponsored by...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by