Fund Product Update
/Product Updates
Magellan launches new ETF
A new listed active exchange-traded fund (ETF) has been launched by Magellan in partnership with Airlie Funds Management. The aim is to reduce friction and costs for investors. The Airlie Australian Share Fund (ASX: AASF) started trading on the ASX with features of the existing unlisted fund with those of an active ETF. Investors, advisers and brokers can now invest in a single, open-ended fund via the platform of their choice, eliminating the need for two separate funds - one for unlisted funds and one for funds quoted on the stock exchange.
AXA IM closes global equity fund after largest investor withdraws
AXA Investment Management’s Global Dynamic Equity Plus fund closed on 1 June after the largest investor has pulled out. The fund was 3.06 per cent under the MSCI World Index benchmark after fees for the year ending April, with the fund returning 0.68 per cent after fees compared to the index’s 4.05 per cent for the same period.
Plato fund closing
After almost 14 years in action, Plato Investment Management is closing its Australian Shares Core Fund. Since it was opened, the fund has returned 0.1 per cent higher than its benchmark after fees to April’s end, however shorter time frames - five, three and one year to April end - was under benchmark. The fund had $29.6 million in shareholder assets under management at the end of the financial year 2019, with assets fallen to $19 million by the end of April 2020.
Responsible entity Pinnacle Fund Services decided the fund wasn’t likely to obtain the scale required to cover the costs of running the fund and to invest as per its strategy.
iShares launch fixed income ETFs, BlackRock using ESG screens
iShares has listed two ETFs investing in Australian corporate bonds, the iShares Yield Plus ETF (IYLD). The ETF tracks a custom Bloomberg index measuring Australian corporate bond market performance after excluding issuance from the big four banks. The fund is targeting 0.75-1 per cent margin over the RBA cash rate. The second launch at iShares is the iShares Core Corporate Bond ETF (ICOR), which is investing in Bloomberg AusBond Credit 0+ Yr Index.
BlackRock will use ESG screens for both funds and exclude any company involved in controversial weapons, fossil fuels, tobacco, civilian firearms and UN compact violators. There will also be no convertible notes, zero-coupon notes, private placements, CDOs, CBOs, and hybrids.
