GQG plans active ETF as it pursues advisory market

8 February 2022
| By Laura Dew |
image
image
expand image

GQG has brought forward its plans to launch an exchange traded fund (ETF) as it increases it focus on the adviser market.

Speaking to Money Management, managing director for Australia and New Zealand, Laird Abernathy, said it had fast-tracked plans for an active ETF, which it expected to launch by the end of the year.

“We are a nascent player in the intermediated market at the moment. We were available on platforms since March 2020 and I think it takes three years to get traction in the advisory space.

“We have seen considerable growth from $160 million to $860 million but that is still small compared to the larger players, we would love to achieve that growth again. So we still feel there are plenty of opportunities and we want to capitalise on that. An active ETF would help us to have an unlisted and listed offering.”

An active ETF would also be attractive for advised self-managed super funds clients as the feedback was that it was “labour intensive” for them to invest in the fund.

“We have fast-tracked the idea as we want to be as frictionless as possible for advisers, licensees and investors.”

The firm listed on the Australian Securities Exchange (ASX) last year in a float which raised $1.18 billion and Abernathy said this had also helped to raise the firm’s profile with the adviser market.

“We wanted to reach the adviser market by getting on platforms but the ASX presence fasttracks that and we are seeing a lot more interest since the listing. The firm is coming to prominence among larger adviser groups.”

Although the firm is headquartered in the United States, Abernathy said it chose to list on the ASX rather than the New York Stock Exchange as the requirements were less onerous, which would free up time for the firm to focus on its investment activities.

“We chose to list in Australia rather than in the US as the firm has a natural affinity with Australia, our first global institutional client was an Australian superannuation fund and [chief executive] Tim Carver used to run Pacific Current Group.

“We didn’t want the listing to be a distraction as we want to remain focused on the business and the ASX is less onerous than in the US.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago