InvestSMART launches new active ETF
Written by: Oksana Patron
InvestSMART has announced the launch of its new active exchange traded fund (ETF), the InvestSMART Australian Equity Income Fund (INIF) which will aim to offer stable income by investing in a portfolio that is light on the banks and undervalued cash producing firms.
The company said it planned to launch an initial offer of units in the fund at $2.50 each from May 14 before listing the fund on the Australian Securities Exchange (ASX).
The fund would leverage the group’s existing Australian Equity Income portfolio, which returned 11.05 per cent per annum after fees since inception.
Commenting on the launch, InvestSMART’s head of funds management, Alastair Davidson said the fund would aim to deliver investors income without sacrificing capital gains.
“While the priority of the fund is delivering income, the portfolio is constructed in such a way as to allow investor to also benefit from capital gains,” he said.
INIF would hold up to 30 stocks, including some bank stocks however the fund’s exposure would be less than nine per cent compared to more than 22 per cent in the ASX200, the firm said.
The new fund would be managed by InvestSMART’s head of research, James Carlisle, and Guarav Sodh, deputy head of research.
Frequently Asked Questions about this Article…
The InvestSMART Australian Equity Income Fund (INIF) is a new active exchange traded fund (ETF) launched by InvestSMART. It aims to provide stable income by investing in a portfolio that focuses on undervalued cash-producing firms and has a lighter exposure to bank stocks.
The initial offer of units in the InvestSMART Australian Equity Income Fund will be available from May 14, with each unit priced at $2.50. The fund will subsequently be listed on the Australian Securities Exchange (ASX).
The investment strategy of the InvestSMART Australian Equity Income Fund is to deliver stable income while also allowing investors to benefit from capital gains. The fund achieves this by investing in a diversified portfolio that includes up to 30 stocks, with a focus on undervalued cash-producing companies and limited exposure to bank stocks.
The InvestSMART Australian Equity Income Fund is managed by InvestSMART’s head of research, James Carlisle, and deputy head of research, Guarav Sodh.
The InvestSMART Australian Equity Income Fund differs from the ASX200 by having a significantly lower exposure to bank stocks. While the ASX200 has more than 22% exposure to banks, the INIF maintains less than 9% exposure, focusing instead on undervalued cash-producing firms.
InvestSMART's existing Australian Equity Income portfolio has delivered a return of 11.05% per annum after fees since its inception, showcasing its potential for stable income and capital gains.
The primary goal of the InvestSMART Australian Equity Income Fund is to deliver stable income to investors without sacrificing the potential for capital gains, by investing in a carefully constructed portfolio.
Everyday investors might consider the InvestSMART Australian Equity Income Fund because it offers a balanced approach to investing, focusing on stable income and potential capital gains, with a diversified portfolio that minimizes risk by reducing exposure to bank stocks.
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