Fund Product Updates

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New Product Launches

VanEck to launch four new ETFs

Four new exchange-traded funds are due to be launched at VanEck to capitalise on sporting and healthcare innovations globally. ESPO is the only one of its kind listed on the ASX, with the huge global appetite for eSports.

The four new funds are:

  • Video Gaming and eSports ETF (ESPO)

  • Global Healthcare Leaders ETF (HLTH)

  • Morningstar World ex-Australia Wide Moat ETF (GOAT)

  • Morningstar Australian Moat Income (DVDY)

Challenger expands annuity range

A guaranteed floating-rate lifetime annuity linked to the Reserve Bank of Australia (RBA) cash rate has been released by Challenger, the RBA Cash Linked option. The new product is the first retirement income stream to be linked to the RBA cash rate and offered to retail investors, Challenger said.

The annuity offers estate and withdrawal benefits and may improve age pension eligibility for asset test-affected clients. The annuity can be offered with other products like account-based pensions. The annuity is to be offered as part of Challenger’s Guaranteed Annuity (Liquid Lifetime) product range.

Warakirri announces new retail funds

Warakirri Asset Management has announced new retail funds emerging from its partnership with Northcape Capital. Northcape Capital is the investment manager, with Warakirri the exclusive Australian partner.

A new global emerging markets fund, managed by Northcape, is being launched, which will invest in 20-40 stocks. The Australian ethical equities fund and concentrated Australian equities fund are to open to retail investors for the first time in two decades, also holding 20-40 stocks, managed by Northcape. The funds have a proprietary ethical overlay to which clients can add negative or positive screens. Minimum investment sits at $25,000.

Perpetual launches two new ESG funds

The Australian and New Zealand market has two new ESG funds to choose from, with the launch of Perpetual’s global equities offerings launch, with Trillium. The funds are the Trillium ESG Global Equity Fund which holds 70-150 stocks, excluding fossil fuels and integrating ESG research, and the Trillium Global Sustainable Opportunities Fund, holding high-conviction stocks across three themes (climate, economic, health). Both strategies have been successfully running in the United States for many years.

Milford launches multi-asset fund to Australian market

Boutique asset manager, Milford Asset Management, is launching an income-focused, multi-asset fund to the Australian market. This is the third offering to the Australian market by the New Zealand firm. Australian investors can now access the Milford Diversified Income Fund (AU), investing in fixed interest and equity income-generating securities. The fund will use the strategy of its New Zealand counterpart.

Existing Product Updates

Northern Trust announces redeveloped ESG analytics capabilities

The environmental, social and governance analytics at Northern Trust now include key environmental data categories after a revamp. Australian clients can now analyse specific environmental risk indicators for investments. Clients can engage with the investment managers and stakeholders regarding the environmental impact of their portfolio, while also producing data and analytics to add to disclosures.

The information provided supports investors in establishing and meeting sustainable investment goals and regulatory requirements.

Super funds stop classifying new members as default smokers

Several major superannuation trustees have been classifying new members as ‘smokers’ by default, and thus are charging them higher premiums for life insurance. Premiums for smokers are significantly higher than for non-smokers.

The trustees are now making the shift to more appropriate defaults after discussions with the Australian Securities and Investments Commission (ASIC). Trustees making the change include AMP, Colonial First State, IOOF (including OnePath), Intrust, Netwealth and Suncorp.

Over the past three years, ASIC has engaged with seven superannuation businesses incorporating nine superannuation trustees on the issue. Affected members are in the process of being refunded and switched to the non-smoker category, with all new members put into non-smoker by default.

HESTA consolidating investment options

HESTA is in the process of concentrating its investments across both superannuation and income streams as of October 1. The changes are the result of over 18 months’ worth of research into member needs and choices, with the changes to help make member decisions easier.

Some options are closing, while some will see a name change or become a mixture of options, as follows:

  • Infrastructure and Property options are merging

  • The Private Equity option is closing

  • Those in the Private Equity option are to be transferred to the Shares Plus option, which will be renamed High Growth (with subsequent risk profile renamed to ‘aggressive’)

  • The Cash option is being joined by Term Deposits, renamed Cash and Term Deposits (risk profile now ‘very cautious’)

  • The MySuper investment option is being renamed Balanced Growth from Core Pool

  • The Conservative Pool is now simply Conservative

  • The EcoPool is being renamed to Sustainable Growth

  • Global Bonds are being renamed Diversified Bonds

  • The Defensive option is being closed, with members transferred to the Conservative option

  • The Transition to Retirement Income Stream option is closing, with everyone moved to the Conservative option

  • Investment fees will change.