Ausbil Investment Management has launched its first active exchange-traded fund (ETF), providing investors an additional channel of access to its active dividend income strategy.
The new offering, the Ausbil Active Dividend Income Fund – Active ETF, will trade under the Australian Securities Exchange (ASX) ticker DIVI and hold an underlying portfolio of between 25 and 50 stocks in listed Australian companies identified as providing consistent dividends and franking credits that keep pace with inflation.
The manager’s aim is to provide regular income and capital protection for investors through the ETF.
“We are excited to officially launch the Ausbil Active Dividend Income Fund as an active ETF on the ASX,” Ausbil chief executive Mark Knight said.
“This milestone marks a significant step in making our income-focused strategies more accessible to more investors. By offering an active ETF, we’re meeting the requests of brokers, financial advisers, SMSFs and mum and dad investors for a more convenient and efficient way to generate regular monthly income from equities, with the potential for additional capital growth.”
Ausbil DIVI portfolio manager Michael Price noted the fund’s active stock selection process will provide a competitive advantage.
“Ausbil’s active management, a rigorous top-down macro and bottom-up fundamental process, and dynamic portfolio positioning provides investors with a solution focused on delivering sustainable monthly income with the benefit of franking credits,” Price explained.
The ETF seeks to deliver a monthly income stream in excess of the S&P/ASX 200 Accumulation Index benchmark and also provides an important diversifier from the main Australian sectors delivering dividends.
“With a handful of large banks and resource companies paying the majority of dividends each year, relying solely on these sectors can expose investors to risk if dividends are cut. DIVI’s active management approach allows us to diversify beyond the biggest payers, targeting high-quality companies with sustainable dividend growth,” Price said.
Further, he suggested the manager’s approach ensures the fund’s investors are exposed to quality income opportunities in any market environment.
