Fidelity confirms launch of 4 active ETFs
Fidelity International has announced the launch of four active ETFs for Australian investors after confirming the delisting of one of its existing active ETFs from the ASX.
After announcing the firm’s intention to launch as many as seven new active funds earlier in May, Fidelity has confirmed three funds will launch on 31 May, while the fourth fund will kick off on 3 June.
In a statement on 22 May, the firm said the funds in question are Fidelity Australian High Conviction Fund, Fidelity Asia Fund, Fidelity India Fund and Fidelity Global Future Leaders Fund, all of which will be available as actively managed ETFs via the ASX.
The Fidelity Australian High Conviction Fund, launching on 3 June, is actually the existing Fidelity Australian Opportunities Fund with a new name.
Fidelity’s managing director, Lawrence Hanson, said: “Making these four strategies available as ETFs allows investors easy access to some of our most popular funds in Australia, with solid long-term track records.
“Whether they are seeking exposure to offshore market opportunities like Asia, India or global small to mid-caps, or to a high-quality concentrated Australian strategy, investors can now tap into our 400+ investment professionals in one simple trade.”
Hanson explained Fidelity is launching more of its top strategies through ETFs having seen growing demand for accessible and flexible investment solutions among Australian investors.
“The ETF structure enables us to offer our clients an alternative option on how they invest in our products.”
Earlier this month, Hanson said the firm planned to launch multiple strategies and this was tipped to include Fidelity Hedged Global Equities, Fidelity Global Equities, Fidelity China and Fidelity Australian Equities as active ETFs.
The asset manager currently has two active ETFs available in Australia, the $221 million Fidelity Global Emerging Markets Fund (Managed Fund) and the $111 million Fidelity Global Demographics Fund (Managed Fund), the latter of which will, however, be delisted from the ASX in June 2024, pending approval.
Previously, the firm said that following a review of the fund, it made the determination that it’s “no longer economically viable” to maintain the fund as a dual-access fund by continuing to have the fund’s units admitted to trading status and remain quoted on the ASX. The decision was made based on the lack of support for the fund’s strategy in the listed channel.
As of 30 March 2024, the active ETF units represent approximately $8.12 million, or 7.3 per cent of the fund’s total funds under management.
The Australian ETF industry reached some $195 billion in funds under management in April, just shy of the all-time high set in March of $196.7 billion, according to Betashares’ monthly ETF review.
Over the last 12 months, the industry has grown by 33.5 per cent or $49 billion.
Recommended for you
Financial advisers nervous about the liquidity of private markets funds for their retail clients are the target of fund managers launching semi-liquid products which offer greater flexibility and redemptions.
Former Pendal head of multi-asset Michael Blayney has been appointed as a member of the investment committee at specialist managed accounts provider Evidentia Group.
Australian Ethical has seen its funds under management surpass $13 billion in the latest quarter, thanks to retail and wholesale net flows of $173 million but a transition project by Mercer affected superannuation flows.
A salary guide has unpacked the salaries earned in various asset classes, with managing directors in one space earning north of $500,000.
