Ausbil Investment Management has launched the Ausbil Active Dividend Income Fund – Active ETF, targeting tax effective income and potential capital growth through an actively managed Australian equities portfolio. The Fund will trade on the ASX AQUA market under ticker DIVI, featuring a 0.85% management fee and monthly distributions.
- New ETF focused on tax effective dividend income and capital growth
- Active management with 25-50 Australian listed securities
- Targeting to outperform S&P/ASX 200 Accumulation Index
- Units to be quoted on ASX AQUA market under ticker DIVI
- Management fee of 0.85% per annum plus estimated 0.11% transaction costs
Ausbil Launches Active Dividend Income Fund – Active ETF
Ausbil Investment Management Limited has issued a Product Disclosure Statement (PDS) for its latest offering, the Ausbil Active Dividend Income Fund – Active ETF. This new fund is designed to provide investors with a tax effective income stream complemented by the potential for capital growth over the longer term. The Fund will predominantly invest in Australian listed equities, actively managed to exploit market inefficiencies across all cycles and conditions.
The Fund aims to deliver a consistent income stream enhanced by franking credits, with distributions generally paid monthly. Investors can expect exposure to a concentrated portfolio of 25 to 50 companies primarily selected from the S&P/ASX 200 Index. Ausbil’s active management approach combines fundamental research with quantitative inputs, seeking to outperform the benchmark index while managing risk.
Trading and Liquidity on ASX AQUA Market
Units in the Fund will be quoted on the ASX AQUA market under the ticker DIVI, subject to ASX approval. The AQUA market is tailored for managed funds and ETFs, offering continuous trading similar to listed equities but with some regulatory differences. Ausbil has appointed a market making agent to provide liquidity and facilitate orderly trading, although liquidity may be constrained by market conditions and the Responsible Entity’s ability to create or redeem units.
Investors can acquire units either by applying directly to Ausbil or by purchasing on the Exchange once quoted. Withdrawals can similarly be made by redeeming units directly or selling on the Exchange. The Fund supports transfers between issuer sponsored holdings and CHESS holdings, accommodating different investor preferences.
Fees, Risks, and Investment Suitability
The Fund charges a management fee of 0.85% per annum of the gross asset value, calculated daily and paid monthly in arrears. Estimated transaction costs are 0.11% per annum, and a buy-sell spread of 0.20% applies on applications and withdrawals. There are no performance fees, establishment fees, or exit fees.
Investors should be aware that the Fund carries a very high risk profile (risk band 7), with a significant chance of negative returns in any given year. The minimum suggested investment horizon is five years or more, reflecting the Fund’s exposure to equity market volatility and concentration risks. Ausbil incorporates environmental, social, and governance (ESG) considerations in its investment process and actively engages with companies on sustainability issues.
Governance, Taxation, and Investor Support
The Fund is governed by a constitution and complies with relevant Australian laws and regulations. Ausbil provides regular reporting, including audited financial statements and tax information. The Fund distributes income annually and reinvestment options are available. Tax implications vary by investor, and professional advice is recommended.
Ausbil’s ownership structure includes New York Life Investment Management Holdings LLC, providing financial stability and global investment expertise. The Responsible Entity has appointed experienced service providers for custody, unit registry, pricing, and market making to support the Fund’s operations.
Bottom Line?
As Ausbil’s Active Dividend Income Fund prepares to debut on ASX AQUA, investors will watch closely to see if its active strategy can deliver consistent, tax effective income amid market volatility.
Questions in the middle?
- Will the Fund’s active management outperform the S&P/ASX 200 Accumulation Index over the medium term?
- How effectively will the market making agent maintain liquidity under stressed market conditions?
- What distribution levels can investors realistically expect given the Fund’s income and capital growth objectives?