Ausbil to debut first-ever ETF

Ausbil Investment Management has announced it will next year introduce its first Exchange Traded Fund (ETF) to market.

The ETF, set to be introduced in the first half of 2025, will be based on Ausbil’s Active Dividend Income strategy, an income-focused investment solution primarily targeting retirees and SMSF holders.

The strategy is focused on maximising dividend income and franking credits, with the aim of delivering a consistent income stream that grows with inflation over time.

The fund, which is actively managed, is made up predominantly of listed Australian equities with tax effective income, primarily selected from the S&P/ASX 200 Index constituents.

It provides exposure to companies with growing dividend streams, supported by revenues, earnings and free cash flows.

Ausbil chief executive Mark Knight said he was “excited to broaden the accessibility” of the strategy via an ETF option.

“By offering an ETF, we aim to cater to the growing demand from investors and self-managed superannuation funds seeking convenient and efficient access to our income-focused investment solutions,” Knight added.

Michael Price, the strategy’s portfolio manager noted substantial opportunity in the Australian listed market for active dividend income managers.

“While there are several passive, rules-based options available, we believe Ausbil’s active management approach provides a distinct competitive advantage,” he said.

“Through rigorous security selection and dynamic portfolio positioning, we strive to offer investors a more rewarding tax effective dividend-focused investment experience.”

Ausbil, an equities specialist based in Sydney, oversees $19.8 billion in active Australian and global equity investments.