AMP Capital and BetaShares have formed an alliance to launch a range of exchange traded managed funds expected to have wide appeal particularly among self-managed super fund (SMSF) trustees and self-directed investors.
AMP Capital and BetaShares will launch the first three exchange traded managed funds under their alliance on the Australian Securities Exchange (ASX) in the coming months: the AMP Capital Dynamic Markets Fund, the AMP Capital Global Property Securities Fund and the AMP Capital Global Infrastructure Securities Fund1.
The exchange traded managed funds will replicate the investment strategies of existing AMP Capital funds of the same name and will be actively managed by AMP Capital’s dedicated investment teams. The funds will be able to be bought and sold during the trading day like any share on the ASX.
AMP Capital Director, Australia and New Zealand, Craig Keary said: “We see the alliance with BetaShares as a combination of AMP Capital’s excellence in active investment management and the innovation that BetaShares has brought to the exchange traded fund market.
“We are excited to work in alliance with BetaShares to bring the first ever AMP Capital exchange traded managed funds to new and existing customers.”
BetaShares Managing Director Alex Vynokur said: “This alliance is the natural step in the evolution of the Australian market for exchange traded products, bringing together the expertise of the two groups to deliver a new set of investment solutions to our clients.
“Our research indicates a significant opportunity for active exchange traded managed funds in Australia. The recently released BetaShares/Investment Trends ETF Report found that 61 per cent of financial planners are interested in using these funds as part of their investment process.
“We look forward to working with AMP Capital to launch the first of a range of products in the coming months.”
The exchange traded fund market has grown rapidly in recent years due to increased awareness and education, broader use by financial advisers, growing interest from SMSFs and a greater diversity of product range. In addition, the introduction of exchange traded managed funds on the ASX just over a year ago has been met by strong demand by a range of investors.
Mr Keary said: “We want to make it as easy as possible for investors to access AMP Capital’s renowned active investment capabilities. They have told us they want unique investment opportunities and they also want choice when it comes to access. Investors will be able to choose to invest via a traditional managed fund on platform, through the ASX mFund service and now via an exchange traded managed fund in alliance with BetaShares.”
Under the terms of the alliance, BetaShares will be the responsible entity and product issuer of the funds.AMP Capital will be the investment manager and lead distributor.
1 Initial Funds: AMP Capital Dynamic Markets Fund (Hedge Fund); AMP Capital Global Property Securities Fund (Unhedged) (Managed Fund); AMP Capital Global Infrastructure Securities Fund (Unhedged) (Managed Fund)
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