ING wholesale offering reverses trend to retail
By Craig Phillips
ING Australiawill reverse the trend to move into retail, with the launch last week of a wholesale version of its retail Tax Effective Income Trust following the fund’s strong performance in recent years.
The move to roll out the trust to institutional investors bucks the trend of fund managers offering initially wholesale funds to retail investors — usually through platforms.
The fund, which has performed solidly since its inception over 10 years ago, has been shielded from volatile international equity markets given it has no asset allocation to the sector.
“The fund aims to provide tax-effective income with consistently above-average franking levels,” says ING head of funds management markets, Anna-Maria Kwan-Emery.
Institutional investors can access the trust, which has a wholesale management fee of 0.95 per cent, through a minimum investment of $100,000, or as retail investors through master funds and wrap accounts.
The asset allocation breakdown of the trust is divided between Australian equities (57.7 per cent), listed property trusts (32.8 per cent), Australian fixed interest (5.5 per cent) and cash (4 per cent).
The fund has returned 10.7 per cent for the year ending December 31, 2003, and an aggregate per annum of 11.26 per cent for the 10 years preceding this date.
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