InvestSMART to launch active ETF
InvestSMART Group has announced it will release a new active ETF onto the market that will mirror its Australian equity income fund.
In a statement, InvestSMART announced plans to list the active ETF on the ASX under the ticker INIF in June, before which it would launch an Initial Offer of units at $2.50 per unit from 14 May.
The ETF mirrors the firm’s current Australian Equity Income Portfolio, which has demonstrated returns of 11.05 per cent per annum since it was incepted in July 2015.
The active ETF will have a management fee of 0.97 per cent and no performance-based fees.
InvestSMART head of funds management Alastair Davidson indicated in the statement the new ETF would underweight banks (with an exposure of less than 9 per cent, compared to over 22 per cent in the ASX200) and prefer “under-valued, cash-producing companies” instead.
“In InvestSMART’s view, the majority of Australian banks are overvalued, and in the current environment, risks in the sector are also on the increase,” the statement said.
“Holding up to 30 stocks, INIF has a benchmark unaware approach with a bias towards under- valued companies that have a high certainty of generating cash, which can help produce excess returns during difficult or downward trending markets.”
Mr Davidson commented: “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.
“The launch of the active ETF will allow investors to access the strongly performing portfolio in a simple and cost-effective way.”
The active ETF will be managed by InvestSMART head of research James Carlisle along with deputy head of research Gaurav Sodhi.
View the original article at www.etfwatch.com.au
Frequently Asked Questions about this Article…
InvestSMART is launching a new active ETF that mirrors its Australian Equity Income Portfolio. It will be listed on the ASX under the ticker INIF.
The active ETF will be available for investment with an Initial Offer starting on May 14, and it is expected to be listed on the ASX in June.
The initial offer price for the InvestSMART active ETF is set at $2.50 per unit.
The active ETF will have a management fee of 0.97% and will not include any performance-based fees.
The InvestSMART active ETF underweights banks with an exposure of less than 9%, compared to over 22% in the ASX200, focusing instead on under-valued, cash-producing companies.
The ETF follows a benchmark-unaware approach, holding up to 30 stocks with a bias towards under-valued companies that have a high certainty of generating cash, aiming to produce excess returns during challenging markets.
The active ETF will be managed by InvestSMART's head of research, James Carlisle, along with deputy head of research, Gaurav Sodhi.
Investors can benefit from both income and capital gains, as the portfolio is designed to deliver income while also allowing for capital appreciation. It offers a simple and cost-effective way to access a strongly performing portfolio.
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