Fund Product, Company and Regulatory Updates as at 3 March 2020
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Product Updates
Janus Henderson launching active ETF
A fixed-income active exchange-traded fund (ETF) is launching on the Chi-X, the Janus Henderson Tactical Income Active ETF (managed fund) (TACT). The fund will be exposed to cash and fixed interest securities, including bank and corporate debt, mortgage and other asset-backed securities, and government, semi-government and supranational bonds.
Allocation may also be made to high-yielding securities, with other investments in Janus Henderson Investors underlying funds. The fund aims to beat the Bloomberg AusBond Bank Bill Index and Bloomberg AusBond Composite 0+ Yr Index (equally weighted).
iPartners launching new credit fund
Debt solutions provider iPartners is launching the iPartners Investment Fund after investor demand. The fund will be a diversified mix of alternative fixed-income assets in a pooled investment vehicle. The fund will have a three-person investment committee with industry heavyweights Travis Miller, Rob Nankivell, and Chris Reade.
ETF Securities launching new Australian ETF
A new ETF is to launch on the ASX by ETF Securities, investing in 10 huge companies such as Facebook, Apple, Amazon and Google, with Tesla, Netflix and Baidu. This ETF is the first dedicated ETF for the sector, launched after investor demand for a local product with exposure to these companies. The ETF is tracking an index created by ICE Data Indices (Intercontinental Exchange). iPartners is hoping to appeal to younger investors who aren’t troubled by volatility.
BetaShares launching new tech ETF
The BetaShares S&P/ASX Australian Technology ETF (ATEC) is to start listing in March 2020, investing in a diversified index of Australian tech companies such as Xero, AfterPay, WiseTech Global, REA Group and Caresales.com.
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Company Updates
Franklin Templeton buying Legg Mason
An agreement has been entered into by Franklin Resources (Franklin Templeton) with Legg Mason. Both boards unanimously approved the acquisition, with Franklin Templeton to pay an all-cash consideration of $6.7 billion, to build a $2.24 trillion investment business. The combined entity will trade as Franklin Templeton, with headquarters staying in California. Shareholders have been offered $74.77 per share in cash, which is 20 per cent more than Legg Mason stock was trading for at close of last Friday.
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Regulatory Updates
AGM Markets found to have engaged in unconscionable conduct
A Federal Court has found AGM Markets Pty Ltd, OT Markets Pty Ltd and Ozifin Tech Pty engaged in unconscionable conduct while selling over the counter derivative products to Australian retail investors. Investors lost over $30 million as a result.
The companies typically used offshore account managers to engage with Australian retail investors, providing personal advice to clients when unlicensed, not in the client’s best interests, and made false/deceptive statements, including statements regarding the risks of derivative products.
As a result, the judge found that AGM contravened its Australian financial services licensee obligations and failed to provide efficient, honest and fair financial services.
SG amnesty bill passes after two years
The government’s superannuation guarantee amnesty bill has finally moved through the Senate almost two years after it was first introduced. The bill encourages employers who are historically inconsistent with superannuation payments to employees to pay up unpaid superannuation without consequences. The amnesty expires after six months.
Since the amnesty was originally floated in 2018, about 7,000 employers have already come forward to voluntarily disclose unpaid super.
