Perennial Launches Ziller Global Fund Active ETF Spotlighting Founder-Led Growth

A New Active ETF for Global Founder-Led Growth

Perennial Investment Management Limited has officially launched the Ziller Global Fund Active ETF (ASX: ZILR), marking its entry into the actively managed global equities ETF space. The fund, managed by Ziller Funds Management under the leadership of founder Joseph Ziller, focuses on a concentrated portfolio of 15 to 25 global companies characterised by high growth potential and strong founder leadership.

Since its inception in November 2022, the underlying strategy has delivered an impressive 25.1% per annum net return, outperforming its benchmark, the MSCI All Country World Net Index (AUD). This performance track record underpins the fund’s objective to generate absolute returns above the benchmark over a typical investment cycle of five years or more.

Investment Philosophy and Portfolio Construction

The Ziller Global Fund Active ETF employs a rigorous investment process combining quantitative and qualitative analysis. Central to this approach is the focus on founder-led companies, which the manager believes exhibit unique qualities such as an owner’s mindset, operational obsession, and resilience through market disruptions. The portfolio construction emphasises risk management through limits on individual stock, thematic, and geographic exposures, aiming to concentrate capital in the highest conviction ideas.

Joseph Ziller highlights that periods of market volatility can present compelling entry points to align with these exceptional founders. The fund does not incorporate environmental, social, and governance (ESG) factors in its investment decisions, focusing instead on business fundamentals and valuation margins of safety.

Structure, Fees, and Accessibility

Listed under the ASX AQUA Rules, the ETF offers investors the flexibility to trade units on the exchange with liquidity supported by appointed market makers. Investors can also transact directly with the Responsible Entity, Perennial Investment Management Limited, subject to minimum investment thresholds.

The fund charges a management fee of 1.53% per annum, inclusive of GST and expense recovery, alongside a performance fee of 15% on returns exceeding the benchmark. There are no transaction costs charged separately, and the fund uses derivatives only for hedging or efficient exposure purposes, without engaging in short selling or gearing.

Suitability and Risks

The Ziller Global Fund Active ETF is positioned as a high-conviction satellite allocation for investors with a long-term horizon of five years or more, seeking exposure to global equities led by exceptional founders. The fund carries a very high risk profile, reflecting its concentrated portfolio and active management style. Investors should be mindful of risks including market volatility, liquidity constraints, currency fluctuations, and the potential impact of performance fees on investment behaviour.

Perennial advises prospective investors to carefully review the Product Disclosure Statement and seek professional financial advice to ensure the fund aligns with their investment objectives and risk tolerance.