InvestSMART to launch new Active ETF (ASX:INIF)

ASX-Listed fund to deliver income without sacrificing capital gain
By · 3 May 2018
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3 May 2018
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SYDNEY, 3 May 2018: InvestSMART Group Limited (ASX Code: INV) today announced it will launch an Active ETF, that delivers investors income without sacrificing capital gains.

InvestSMART has today lodged the product disclosure statement for the InvestSMART Australian Equity Income Fund (managed fund), to trade under ASX code: INIF, with plans to launch an Initial Offer of units in the Fund at $2.50 each from May 14 before listing on the ASX in June.

The Active ETF will mirror the group’s existing Australian Equity Income portfolio, which has a strong track record of performance – returning 11.05% p. a. after fees (outperforming the S&P ASX 200 Accumulation Index by 4% p.a.) since inception in July 2015.

Commenting on the launch, InvestSMART Head of Funds Management Alastair Davidson said INIF aims to deliver both a stable income and capital growth by investing in a portfolio that’s light on the banks and focused on under-valued, cash producing companies.

“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,” Mr Davidson said.

“We believe everyone should have the confidence to control their future and it shouldn’t be hard or expensive to do so. The launch of the Active ETF will allow investors to access the strongly performing portfolio in a simple and cost-effective way.”

Underweight the banks

While INIF may hold some bank stocks, its exposure is currently less than 9%, compared to more than 22% in the ASX200. 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.

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. 

The ASX-tradeable portfolio structure afforded by the Active ETF benefits investors who are seeking ease of transacting and less paperwork. INIF is also a cost-effective solution with competitive fees and expenses of 0.97% and no performance-based fees.

Experienced investment team

Unlike passive Exchange Traded Funds (ETFs), Active ETFs bring the benefit of professional management by an experienced investment team.

INIF will be managed by James Carlisle, Head of Research at InvestSMART, who has been researching stocks for more than two decades and Guarav Sodhi, Deputy Head of Research, who has been with InvestSMART as an analyst for nearly a decade.




About the Fund

For more information on the InvestSMART Australian Equity Income Fund (Managed Fund (ASX:INIF), please visit:

About InvestSMART

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.

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