The biggest fund launches of Q3 2023
With the third quarter behind us, Money Management collates several Australian fund launches over the last three months, as well as notable fund manager deals.
Six key funds were launched in Q3, spanning across the tech sector, fixed income, alternatives and small caps.
While there were no fund launches in the month of July, the quarter did commence with three noteworthy fund manager announcements and deals.
July
The sale of AIA Australia’s superannuation and investments business to Resolution Life was finalised at the beginning of the month, which was first announced in February 2022.
It marked the first portfolio acquisition for Resolution Life, which has now seen assets under management grow by some $7.1 billion. Over 144,000 AIA Australia customers joined its existing 1.1 million Australasian consumer base.
Also in July, Cromwell Property Group entered into a $1.1 billion unlisted fund merger with Australian Unity Property.
This will see the Cromwell Direct Property Fund merge with the Australian Unity Diversified Property Fund to create a fund with a well-diversified portfolio of 15 high-quality assets valued at $1.1 billion. If the conditions are met, the merger is expected to complete in late 2023.
The month ended with Pengana Capital’s appointment of Mercer as an investment adviser on its portfolio construction for its recently launched private credit arm. Pengana Credit looked to leverage Mercer’s global footprint, access and investment expertise.
August
Franklin Templeton launched its first alternative fund for Australian retail investors in August. The Franklin K2 Athena Fund invests in primarily uncorrelated risk premia strategies across diverse asset classes such as equities, fixed income and currencies.
In the same week, J.P. Morgan Asset Management (JPMAM) launched two active exchange-traded funds (ETFs) focused on fixed income and emerging markets on the Cboe Australia exchange.
The first one, JPMorgan Income Active ETF, is a fixed income active fund that aims to deliver yield and generate consistent income with lower volatility, JPMAM’s first fixed income ETF in the Australian market.
The second, the JPMorgan Emerging Markets Research Enhanced Index Equity Active ETF, uses JPMAM’s Research Enhanced Index (REI) strategy to seek positive alpha at low tracking error, staying sector, style and region neutral.
Global X also launched its second core ETF, the Global X US 100 ETF (N100). It will track the performance of the largest 100 companies listed on the NASDAQ exchange (excluding financials and REITs) to provide investors with exposure to a core portfolio of high-growth technology stocks.
September
In partnership with US-based asset manager EAM Global Investors, SG Hiscock (SGH) launched the EAM Global Small Companies Fund into the Australian market in September.
The fund is distributed by SGH and offers Australian investors access to global small companies across both developed and emerging markets to increase portfolio diversification.
Additionally, Betashares expanded its range of fixed income solutions by launching two ETFs that provide investors exposure to a portfolio of US Treasury inflation-protected securities.
The quarter ended with Datt Capital’s launch of the Datt Capital Small Companies Fund. According to Emanuel Datt, chief investment officer of Datt Capital, the new fund will fill a sizeable niche for investors looking to maximise the latent value opportunities within the sector.
AUTHOR
Jasmine Siljic
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