IML’s Concentrated Australian Share Fund now available as an active ETF
IML’s Concentrated Australian Share Fund (Quoted Managed Fund) is now directly available to investors for the first time after listing on the ASX on 1 August, 2023 (ASX:IMLC). The unlisted fund has performed 1.1% p.a. better than the ASX 300 Accumulation Index since inception, after fees, with lower volatility, while also better protecting clients’ capital when markets fall.
The Quoted Managed Fund is a separate class of units in the unlisted Concentrated Australian Share Fund, a Morningstar Gold-rated, high conviction fund that invests in a select group of 20-30 high-quality, undervalued companies listed on the ASX. It has been managed by Hugh Giddy since the fund’s launch in 2010.
Hugh has worked in financial markets since the 1990s, honing his craft with some well-known investors including Allan Gray, Anton Tagliaferro and Kerr Neilson. He is supported by a team of 10 portfolio managers and analysts who undertake rigorous fundamental analysis on every stock in the fund.
IML Chief Executive Damon Hambly says the listing is due to client demand.
“We continue to hear from our clients that they want choice. Choice not only in the assets they invest in, but also the way they invest. We are offering the Concentrated Fund as an active ETF to suit our financial adviser clients that like to invest this way, as well as retail investors who manage their own portfolios.
“As passive investing continues to rise in popularity we are seeing an increasing demand for funds like the Concentrated Fund that offer something significantly different to passive index investing.”
Hugh says he enjoys the constraint and rigour required in choosing a concentrated portfolio.
“Due to the small number of stocks in the fund I select from among the highest quality companies on the ASX, and those I can buy at a reasonable price. The quality of the stocks has meant the fund tends to drop less than the benchmark in tough times, only falling half as much as the benchmark on average*. Low drawdowns have contributed to the fund outperforming over the long term, despite the fund sometimes lagging more frothy markets. Because the fund performs quite differently to the benchmark, it offers diversification benefits for investors while still investing in Australian equities.”
