Following the launch of its first active exchange-traded fund (ETF) in September, the firm has announced the launch of two more vehicles on the ASX, both of which are active versions of existing managed funds.
The first is the Ausbil Global Essential Infrastructure Fund (Hedged) Active ETF (GHIF), while the second is the Ausbil Global SmallCap Fund Active ETF (GSCF).
Commenting on the announcement, Ausbil CEO Mark Knight said the local fund manager is excited to offer a broader range of investors access to its investment strategies.
“We are excited to officially launch these two active global funds as ETFs – following the recent launch of the Ausbil Active Dividend Income Fund (ASX ticker: DIVI) – in September on the ASX,” Knight said.
The infrastructure ETF will primarily invest in listed global infrastructure securities within developed markets, with a maximum of 10 per cent of its investments in emerging markets, provided these markets are regulated and have a proven history of stable cash flow. It will include exposure to regulated utilities, toll roads, pipelines, airports and mobile phone towers.
The fund will generally hold between 25 and 45 companies to produce outperformance while hedging the currency exposure back to Australian dollars.
Launched in May 2018, the existing infrastructure fund now has $260 million in funds under management.
Global infrastructure investment is a growing topic of discussion given the estimated US$94 trillion needed in the space by 2040, primarily driven by the energy transition, digital transformation and the need to address ageing infrastructure.
Head of listed infrastructure at Ausbil, Tim Humphreys, emphasised the essential role of infrastructure assets in daily life. He added that these assets can offer investors a consistent return regardless of market fluctuations.
“We aim to uncover undervalued streams of cash flow from these assets that are not yet fully priced by the market for our investors,” Humphreys said.
For the global small-cap equities fund, this ETF will aim to outperform the MSCI World Small Cap Index through investing in 50–80 quality global companies with “unrecognised growth potential” at attractive valuations. Unlike the infrastructure fund, it will be unhedged.
Ausbil’s existing global small-cap strategy was also launched in May 2018 and has $117 million in funds under management. Management fees stand at 1.2 per cent per annum of gross asset value for the small-cap active ETF and 1 per cent for the infrastructure vehicle.
Co-portfolio manager of the fund, Tobias Bucks, explained that GSCF seeks to “exploit the inefficiencies” within global small-cap stocks by investing in attractively valued, quality companies with unrecognised growth potential.
“We employ a blend of both qualitative and quantitative analysis and a disciplined risk management process in this increasingly popular sector,” Bucks said.
As well as Ausbil, active ETF launches in recent months have included vehicles from Betashares, Global X, Loftus Peak, and IML.
Through its new active ETF range, Knight said Ausbil is “directly meeting the requests” of financial advisers, self-managed super funds and everyday investors alike.
“We believe Ausbil’s active management, a rigorous top-down macro and bottom-up fundamental process, coupled with dynamic portfolio positioning, is well-suited to navigate today’s volatile markets,” he added.
