K2 Asset Management is seeking ASX quotation for an active exchange-traded global equities fund, following in the footsteps of Magellan earlier this year.
Speaking to InvestorDaily, K2 head of distribution Andrew Hall said a product disclosure statement for the new fund is currently in the exposure stage with ASIC.
"That’s still subject to their approval in the next week. The plan is to launch an exchange-traded managed fund similar to what Magellan did earlier in the year with one of their global funds.
"The plan is to launch an exchange-traded managed fund similar to what Magellan did earlier in the year with one of their global funds," he said.
Magellan launched an exchange-traded version of its Magellan Global Fund in February.
The advent of ASX-listed active global funds is a "real game changer" and "opens up managed funds to a broad new audience", Mr Hall said.
K2 Asset Management will be the market maker for the new fund, issuing regular 'iNAVs' to the market throughout the trading day, he said.
"K2 Asset Management will be the market maker – that’s part of the requirements for an active fund. We’ll maintain a spread in the market to facilitate applications and redemptions.
"We think it provides real opportunities for SMSF people to access managed funds and get the benefit of the liquidity, and ease by which they can access the fund through their CHESS holdings.
"The new K2 Global Equities Fund will be managed along the lines of the existing K2 Global High Alpha fund, which has a five-year track record," Mr Hall said.