Fund Product Update

Product Updates

Pinnacle closes Australia’s first zero-fee ETF

Australia’s first no-fee ETF is being wound up by Pinnacle after it had difficulties finding investors. The aShares Dynamic Cash Fund (Managed Fund) was listed on the ASX in August 2019, managed by Omega Global Investors. The fund was the first to alleviate performance and management fees in Australia, following the lead of the United States. The zero-fee idea was designed to get customers comfortable with the firm, with the fees being absorbed by Pinnacle.

ETF Securities launches two new Ultra series ETFs

Two new exchange-traded ‘Ultra’ funds have been launched by ETF Securities (ETFS), offering leveraged exposure to the NASDAQ 100 index. The ETFS Ultra Long NASDAQ 100 Hedge Fund (ASX: LNAS) offers geared returns positively related to NASDAQ 100 index returns, while the ETFS Ultra Short NASDAQ 100 Hedge Fund (ASX: SNAS) offers geared returns negatively related to the index. Both new ETFs are currency hedged and use derivatives to gain exposure to the index. The products are for sophisticated traders as short-term investments.

Janus Henderson launches ETF on Chi-X

A listed version of its Tactical Income Fund (ASX: JHI02) has been launched on the Chi-X by Janus Henderson Investors. Investment choices are made between mostly Australian fixed-income assets of cash, fixed and floating interest rate securities, asset-backed securities, corporate securities, and hybrids. The fund is targeting retail investors.

BetaShares launches two currency-hedged global ETFs

Two of BetaShares’ global equity ETFs now have currency-hedged versions - the BetaShares Global Sustainability Leaders ETF - Currency Hedged (ASX: HETH) and BetaShares NASDAQ 100 ETF - Currency Hedged (ASX: HNDQ). The global sustainability ETF is one of the biggest ethical ETFs currently on the Australian Stock Exchange (ASX) with over $650 million in funds under management.

State Street listing ESG ETF

A new environmental, social and governance (ESG) ETF is being launched on the ASX by State Street Global Investors. The SPDR S&P/ASX 200 ESG Fund (ASX: E200). The fund tracks the S&P/ASX 200 Index, using exclusions/negative screening while also finding high performing companies in ESG terms. The launch date is expected to be 5 August.

Magellan set to pool three versions of Magellan Global Fund

Unitholder approval is being sought by Magellan to build a $15 billion megafund with the combined assets of the unlisted, ETF and listed investment trust of the Magellan Global Fund. A single trust will be created with two unit classes issued: an open class for the unlisted fund and the active ETF, and a closed class for the trust. Approval is required from the investors in all three funds.

The three funds are the Magellan Global Fund (unlisted managed fund), Magellan Global Equities Fund (active ETF, MGE) and the Magellan Global Trust (listed investment trust MGG). Meetings are expected to occur in October and December 2020.