SYDNEY, 19 June 2018: InvestSMART Group Limited (ASX Code: INV) has today debuted its first ASX listed fund – an active ETF - designed to deliver investors income without sacrificing capital gains.
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 $30 million FUM.
INIF commenced trading on the ASX today at a unit price of $2.50. It mirrors the group’s existing unlisted Intelligent Investor Equity Income Portfolio, which has an estimated income of 5.3% p.a.^ and has returned 11.5% p.a. since inception, significantly outperforming its benchmark of 7.9%*.
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 said.
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,” Mr Davidson said.
“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%, compared to more than 22% 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% 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,” Mr Davidson said.
About the Fund
For more information on the InvestSMART Australian Equity Income Fund (Managed Fund (ASX:INIF), please visit: www.investsmart.com.au/INIF
With more than 630,000 members, InvestSMART Group Ltd a listed financial services company, is one of Australia’s leading online resources for portfolio strategy advice, stocks and investment research and self-managed superannuation coverage. It owns Intelligent Investor, Eureka Report and has launched a number of its own funds.
InvestSMART was founded in 1999 and the Chairman is Paul Clitheroe AM. Paul has 37 years of experience and is regarded as one of Australia’s leading “money” experts. Paul hosted the popular Channel 9 program Money and now chairs the Australian Government Financial Literacy Board and holds the Chair of Financial Literacy at Macquarie University.
^Including franking. *As at 30 April 2018, after admin and investment fees, excluding franking. Inception Date is 01 July 2015. The Fund will be managed in the same way as the Portfolio product.
The Responsible Entity of the Fund is InvestSMART Funds Management Limited (ACN 067 751 759, AFSL 246441). The Fund is managed by Intelligent Investor Holdings (ACN 109 360 983, CAR 1255 838). The Fund has been registered with ASIC under ARSN 620 031 414. All indications of performance returns are historical and cannot be relied upon as an indicator for future performance.