Ausbil to launch inaugural ETF

Ausbil Investment Management is set to launch its inaugural exchange-traded fund, bringing its Active Dividend Income strategy in the first half of 2025.

Ausbil said the strategy has proven popular among investors, contributing to significant growth in assets under management. It has about $685 million in funds under management as at October end.

The strategy focuses on maximising dividend income and franking credits, aiming to deliver a consistent income stream that grows with inflation over time.

Ausbil said by employing an active management approach, the strategy has the flexibility to adapt to changing market conditions and seize attractive income opportunities.

"We are excited to broaden the accessibility of the Ausbil Active Dividend Income Fund through the upcoming ETF launch," Ausbil chief executive Mark Knight said.

"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."

Strategy portfolio manager Michael Price said he sees a 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."