GSFM will soon launch its first quoted fund, the Munro Global Growth Fund (Hedge Fund). Structured as an actively managed exchange traded product (active ETP), it will gain its exposure to international equity markets by investing in the Munro Global Growth Fund and cash. The Fund is yet to be quoted. Application has been made to the ASX and approval is pending.
How to invest
The initial Units in the Fund will be issued to an applicant off-market. Following the issue of those initial Units, investors can buy Units on the AQUA market of the ASX through a stockbroker, trading platform or via a financial adviser. Such investors may use this PDS for informational purposes only.
Frequently asked questions
What is the AQUA market?
The AQUA market is a platform tailored for managed funds and structured products. The AQUA Rules have been designed to offer greater flexibility and are specifically designed for managed funds, ETPs and structured products.
The AQUA Rules form part of ASX Operating Rules. The Fund will be quoted on the ASX under the AQUA Rules.
What are ETPs?
Exchange traded products (ETPs) are quoted managed investment schemes that provide you with the opportunity to buy a diversified portfolio of assets in a single transaction. ETPs include certain managed funds, ETFs and structured products.
Active ETPs are actively managed ETPs that have an investment manager appointed to make decisions about the ETPs underlying portfolio allocation with a goal to outperform a target benchmark.
Benefits of ETPs
- Diversification – ETPs provide you with the ability to diversify your portfolio through holding a single security.
- Liquidity and transparency – as a traded security, the ETP enables you to enter and exit your investment on the ASX anytime during trading hours.
- Taxation advantages – an ETP will change in value as the underlying portfolio changes in value and may provide income for you through distributions and franking credits. The turnover of the underlying portfolio is low, reducing the level of capital gains incurred by you and tax paid. For full details on taxation, please refer to the PDS.
- Lower cost – since ETPs are typically able to achieve lower operating costs, the management fees are generally lower compared to other forms of retail managed funds. However, brokerage or adviser fees may still apply when buying or selling an ETP.
How are units created and cancelled?
The Responsible Entity, on behalf of the Fund acts as the market maker for the Fund, providing liquidity to market participants.
At the end of each Business Day, Units are created or cancelled by the Responsible Entity depending on the net quantity traded for that particular day on the ASX. Investors looking to acquire or sell Units in the Fund may do so on the ASX.
What is a market maker?
As market maker, the Responsible Entity provides a function to ensure there is liquidity and to ensure that the bid-offer spreads paid by ASX investors are close to the value of the underlying assets or Adjusted iNAV (intraday indicative net asset valuation). This is done through actively issuing and redeeming units on issue to closely reflect buy and sell trades occurring on the ASX.
What disclosure does GSFM provide about listed funds?
We aim to be transparent with our clients and will make the following disclosures:
- ASX announcements uploaded to our Continuous Disclosure Notices page
- Estimated Net Asset Value (NAV) per Unit published each day to the Data & Documents page
- Indicative intra-day NAV per Unit (iNAV) published on both the home page and specific Quoted Fund page, and which is updated throughout the ASX trading day
- Monthly and quarterly reporting.