Australian investment research house InvestSMART has launched its first exchange-traded managed fund: the InvestSMART Australian Equity Income Fund (INIF AU).

InvestSMART launches ASX-listed active ETF

The actively managed fund aims to generate income without forsaking capital growth by investing in a relatively concentrated portfolio (10 – 35 stocks) of cash-rich Australia-listed equities. The strategy hinges on the expectation that these businesses will produce strong cash flow to support dividends in the future.

The fund aims to return an income higher than the ASX 200 Accumulation Index. It is currently most highly exposed to financials, followed by consumer discretionary, and industrials.

Its holdings will mirror one of InvestSMART’s model portfolios: the Intelligent Investor Equity Income Portfolio, launched in 2001. This equity income portfolio has an estimated income of 5.3%. per annum and has returned 11.5% per annum after fees since inception.

INIF will be managed by InvestSMART’s head of research, James Carlisle, and deputy head of research, Guarav Sodh.

It has a management fee of 0.97% and is available to trade on Australian Securities Exchange.