Macquarie Asset Management launches first Australian active ETFs

Australia’s Macquarie Asset Management has rolled out its first actively managed exchange traded funds that will compete with a growing number of global managers that have also listed active ETFs in the market.

The Macquarie Dynamic Bond Active, Macquarie Income Opportunities Active and Macquarie Walter Scott Global Equity Active ETFs are listed on ASX.

The launches follow hot on the heels of US asset management giant Dimensional Fund Advisors entry into the Australian market with its own suite of active ETFs.

Dimensional’s three actively managed Australian Core Equity, Global Core Equity (Unhedged) and Global Core Equity (AUD Hedged) were listed on November 13 with a “dual-access” structure under which investors can access a fund through both listed and unlisted distribution channels.

This article was previously published by Ignites Asia, a title owned by the FT Group.

Other global asset managers that have entered Australia’s active ETF market in recent months are JPMorgan Asset Management, which earlier this month listed the JPMorgan Global Research Enhanced Index Equity Active ETF and JPMorgan Equity Premium Income Active ETF, and UK-based asset manager Abrdn, which last month launched an actively managed, sustainability-themed ETF in Australia.

The Macquarie bond strategy can invest up to 100 per cent of its assets in sovereign bonds, up to 70 per cent in investment grade credit and up to 20 per cent in high-yield and/or emerging market debt instruments.

The Macquarie Income Opportunities ETF is benchmarked against the Bloomberg AusBond Bank Bill Index and invests primarily in a wide range of domestic and global investment grade floating and fixed rate instruments, asset-backed securities and cash.

Meanwhile, the Macquarie global equities ETF is benchmarked against the MSCI World ex-Australia Index and is managed by Walter Scott & Partners, the UK-based equities fund house owned by BNY Mellon Investment Management.

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Macquarie AM, which manages A$892bn ($584.7bn) in assets globally, said its new ETF platform will provide investors with easier access to its global investment capabilities and actively managed strategies, which were previously only available as traditional unlisted managed funds.

The crowded Australian ETF market is one of the fastest growing in the world and is dominated by US fund giants Vanguard and BlackRock, and local ETF provider Betashares. The providers are engaged in a fierce price war.

Assets under management in the Aussie ETF industry have grown by more than A$26bn in the past 12 months. Over the past 10 years, the market has exploded from about A$10bn to roughly A$150bn.

*Ignites Asia is a news service published by FT Specialist for professionals working in the asset management industry. Trials and subscriptions are available at ignitesasia.com.