Airlie Australian Share Fund Debuts with 0.78% Management Fee and 15-35 Stock Focus
Magellan Investment Partners has launched the Airlie Australian Share Fund - Active ETF (AASF), offering investors a concentrated, actively managed portfolio of Australian equities with integrated ESG considerations. The fund combines liquidity via direct applications and Securities Exchange trading, targeting long-term capital growth and income.
- Active ETF investing in 15-35 Australian equities
- Focus on long-term capital growth and income
- Integrated ESG factors with exclusions on tobacco and controversial weapons
- Liquidity through both Securities Exchange trading and direct applications/withdrawals
- Management fee of 0.78% per annum with no performance fees
Introducing the Airlie Australian Share Fund - Active ETF
Magellan Investment Partners has introduced the Airlie Australian Share Fund - Active ETF (ticker, AASF), a new registered managed investment scheme now admitted to trading on the Securities Exchange. This fund offers investors a focused exposure to Australian equities through an actively managed, concentrated portfolio typically holding between 15 and 35 stocks.
The Fund’s investment objective is to deliver long-term capital growth and income by investing primarily in Australian-listed equity and equity-like securities. Magellan’s approach is grounded in rigorous fundamental research, assessing companies on financial strength, management quality, business quality, and valuation. The Fund also integrates environmental, social, and governance (ESG) factors into its investment process, excluding companies involved in tobacco production and controversial weapons.
Liquidity and Access for Investors
Investors can access the Fund either by purchasing units directly on the Securities Exchange or by applying and withdrawing units directly with Magellan. This dual access provides flexibility, with the Securities Exchange route offering immediate liquidity and no minimum investment size, while direct applications require a minimum initial investment of $25,000. The Fund also provides an indicative net asset value (iNAV) throughout the trading day to help investors gauge the Fund’s underlying value.
Magellan acts as a liquidity provider on the Securities Exchange, supported by an appointed Market Making Agent, to facilitate trading and help maintain orderly market conditions. However, investors should be aware that prices on the exchange may differ from the Fund’s net asset value due to market supply and demand dynamics.
Fees, Risks, and Governance
The Fund charges a management fee of 0.78% per annum, with no performance fees, and incurs low transaction costs of approximately 0.02% per annum. Investors applying or withdrawing directly pay a buy/sell spread of 0.18% to cover transaction costs. The Fund’s risk profile is classified as high, reflecting its concentrated portfolio and exposure to market and company-specific risks.
Magellan emphasizes a disciplined, long-term investment philosophy and robust risk management, including the use of derivatives only for limited risk management purposes. The Fund complies with the Attribution Managed Investment Trust (AMIT) tax regime, providing investors with tax transparency and annual tax statements.
ESG Commitment and Stewardship
ESG considerations are embedded in the Fund’s investment analysis, with ongoing engagement with portfolio companies on sustainability and governance issues. Magellan’s stewardship includes proxy voting aligned with long-term investor value and exclusion of companies whose activities conflict with sustainable value creation.
With approximately $40 billion in assets under management, Magellan Investment Partners brings extensive expertise to managing this Fund, supported by Northern Trust as custodian and Apex Fund Services as unit registry. The Fund’s quarterly portfolio holdings and distribution details will be publicly disclosed, ensuring transparency for investors.
Bottom Line?
As the Airlie Australian Share Fund - Active ETF begins trading, investors will watch closely to see how its active, ESG-integrated approach performs in Australia’s dynamic equity market.
Questions in the middle?
- How will the Fund’s concentrated portfolio perform relative to broader Australian equity benchmarks?
- What impact will the Fund’s ESG exclusions have on its investment universe and returns?
- How effectively will liquidity be maintained on the Securities Exchange given the Fund’s active management style?
