First Sentier shakes up ETF market with new ASX | Australian Markets

The Australian exchange traded fund (ETF) market is set to welcome a new entrant, after First Sentier Investors introduced it has utilized to the Australian Securities Exchange (ASX) to record its first ETF.

The international investment supervisor mentioned its First Sentier Geared Australian Share Fund can be repackaged into the ETF format with ASX ticker code, LEVR, offering traders with an different path to entry the fund’s long-term growth alternatives with its choice of particular ASX100 stocks that offer a sturdy stability sheet, the flexibility to grow their money flows and liquidity.

“We are pleased to bring LEVR to market next month to provide investors with flexibility to access our team’s active investment approach via the ASX,” Head of Australian Equities Growth at First Sentier Investors, Dushko Bajic, mentioned.

“Our experienced investment team has been actively managing the First Sentier Geared Australian Share Fund since its launch in 2023, growing funds under management to AU$155 million. LEVR will offer additional access to the Fund through an ASX quoted structure, for investors seeking to invest in an actively managed, geared portfolio of Australian shares.”

Similarly to its sister fund, the First Sentier Geared Australian Share Fund Complex ETF will leverage more than 25 years of mixed expertise from the investment management crew having navigated a selection of market situations.

“Our team has more than 25 years’ experience of gearing through both rapidly rising and falling markets,” David Wilson, Deputy Head of Australian Equities Growth and Portfolio Manager at First Sentier Investors, mentioned.

“We believe the ASX 100 is the perfect hunting ground for an actively managed, geared strategy – even when markets are volatile – with a number of high-quality growing companies capable of compounding earnings growth and providing opportunities.”

“By borrowing at a low institutional rate of interest to invest, LEVR goals to compound the long-term growth of rising markets, offering the potential for amplified returns and franking credit.

“Given LEVR’s gearing levels, it’s a high to very high-risk fund with the potential for amplified losses in falling markets, but without the hassle of servicing margin calls. That’s why we’re focused on high quality, liquid companies with conservatively geared balance sheets to help manage this risk.”

The fund is predicted to begin trading on the ASX from mid-May, as soon as all required approvals are in place.

“We’re looking forward to listing LEVR, which provides clients the opportunity to access the expertise of our long-standing Australian Equities Growth Investment Team and one of Australia’s largest and longest-running geared share managers,” Harry Moore, Chief Commercial Officer at First Sentier Investors, mentioned.

“Given the increasing demand for ETFs, we’re excited to provide our clients with an additional way to access our active investment approach via this structure and expand our offering to new clients who may not have traditionally considered investing via managed funds. We will continue to assess opportunities to meet evolving client needs and broaden access to our suite of investment strategies.”