Ausbil broadens wholesale sustainable fund access with ETF

Ausbil Investment Management has launched a new ETF, which leverages its Active Sustainable Equity Fund which was exclusive to wholesale and advised clients, to expand retail access for sustainable investment solutions.

The new ETF (ASX: ASUS) provides exposure to an actively managed portfolio of between 30-45 Australian-listed equities, primarily from the S&P/ASX 200 Index, to deliver risk-controlled outperformance of its benchmark, the S&P/ASX 200 Accumulation Index, over the long term.

Since inception on 31 January 2018, the fund has generated a net return of 9.22% p.a., compared to benchmark (8.36%), over the same period. It has $394 million of funds under management as of March 31.

Under Ausbil's sustainability approach, companies are assessed on both what they do and how they manage ESG factors, resulting in a sustainability profile and score, and only those determined to have "good sustainability" profiles will be selected, it said.

Commenting, Ausbil head of ESG and co-portfolio manager Måns Carlsson said the launch reflects the growing demand for sustainable investment solutions that go beyond exclusion screens.

"ASUS brings our active, research-driven approach to sustainability to the ASX AQUA market, giving investors easier access to a portfolio built around companies which Ausbil believe have relatively good sustainability profiles and are ranked highly by Ausbil on ESG and positioned for long term growth," Carlsson said.

"We believe ESG factors can be a powerful driver of long-term performance, and ASUS is designed to capture that opportunity."

Meanwhile, deputy head of equities Nicholas Condoleon highlighted the potential benefits of the active ETF structure for a broader range of investors.

"Quoting the fund as an Active ETF allows investors to tap into Ausbil's sustainable investment expertise with the convenience of trading on the exchange," Condoleon said.

"Our process focuses on identifying quality businesses with strong fundamentals and sustainable competitive advantages, and we're excited to offer this strategy in a format that enhances accessibility and transparency."