Three fund managers expand their ETF suites
Three solutions providers – Betashares, Franklin Templeton and Russell Investments – have all launched new exchange-traded fund (ETF) products.
According to Betashares, its two new ETFs – which will hit the market in late April – are Australia’s first “moderately geared” ETFs available on the ASX. The “wealth builder” range will offer a gearing ratio approximately between 30 per cent and 40 per cent on a given day.
The Betashares Wealth Builder Australia 200 Geared (30–40% LVR) Complex ETF provides moderately geared exposure to the returns of the broad Australian sharemarket.
Meanwhile, the Betashares Wealth Builder Diversified All Growth Geared (30–40% LVR) Complex ETF offers moderately geared exposure to the returns of an “all-cap, all-world” share portfolio.
The two strategies are internally geared, meaning each fund enters into the borrowing arrangement itself. This ensures investor risk is limited to the capital investors.
Alex Vynokur, Betashares chief executive, explained: “Utilising gearing is a well-established approach to building long-term wealth, but it has traditionally been expensive to access or used in funds that are only suitable for investors with a tolerance for higher gearing levels.
“The wealth builder series has been designed for investors who are comfortable with leverage but are seeking a more moderate level of gearing better suited to a ‘buy and hold’ investment strategy as part of their wealth-accumulation goals.”
The two funds are well-suited to accumulator investors, Betashares stated, who have a longer term investment horizon and are seeking the higher risks associated with gearing.
Franklin Templeton’s ETF launches
Meanwhile, global investment manager Franklin Templeton has launched two flagship active ETFs: the Franklin Australian Absolute Return Bond Fund (Managed Fund) and the Franklin Global Growth Fund (Managed Fund).
“Our range of active ETFs provide access to specialised investment strategies to meet our client’s investment goals. Furthermore, listing on the ASX will mean that investors will now be able to access the investment expertise and differentiated performance attributes of these funds through intraday-traded vehicles,” commented Felicity Walsh, Franklin Templeton managing director and head of Australia and New Zealand.
The bond fund utilises top-down macroeconomic insights and bottom-up research methods to create the fixed income strategies, while the global growth fund selects quality growth companies driven by secular growth trends.
New ETF from Russell Investments
The Russell Investments Sustainable Global Opportunities Complex ETF offers investors access to an actively managed portfolio of international shares with a focus on ESG concerns.
According to the firm, the ETF evaluates over 200 global equities managers which have sustainable investment strategies and applies exclusionary screens with net zero transition considerations.
“For ESG-focused investors, it is a balance between deliberate security selection in line with their values, while not being constrained by the opportunity set or bearing excessive risk,” explained James Harwood, senior portfolio manager, who will lead the ETF alongside Will Pearce, head of global equities.
Harwood added: “Our multistrategy approach provides a diversified exposure to sustainable global shares with lower equity factor and stock risks, compared to a typical single manager active ESG-related strategy.”
AUTHOR
Jasmine Siljic
Recommended for you
Some 42 per cent of CEOs say they are actively reinventing their business to stay relevant in the next decade, with consumer services the most common choice for asset and wealth managers.
Former Ophir Asset Management chief executive, George Chirakis, has joined private equity manager Scarcity Partners, while the asset manager has appointed a replacement from Macquarie.
Australian Unity has appointed a fund manager for its Healthcare Property Trust, joining from Centuria Healthcare, as it restructures the product with a series of senior appointments.
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.
