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InvestSMART launches new active ETF

The following article appeared on Money Management on 9 May, 2018
By · 9 May 2018
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9 May 2018
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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.

 

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