Macquarie Asset Management responds to market appetite with systematic active ETFs

Sydney, 15 May 2024

Macquarie Asset Management today announced the latest offering across its new ETF platform with the launch of systematic equity products designed to provide investors with exposure to an active equity strategy with potential for above index returns, and a fee structure aligned to performance.

The launch of these innovative products is a response to investor demand for institutional quality portfolio building blocks. Increasingly, investors are looking for more efficient portfolio construction tools and Macquarie’s new range of core active ETFs offer investors access to leading systematic investment capabilities via the ASX.

Macquarie’s new active ETFs also feature a cost-effective management fee, plus a performance fee which only applies when the performance of the active ETF exceeds the index*, so the long-term goals of the investor and the investment manager are aligned.

The systematic active ETFs have the potential to deliver above benchmark returns, using a rigorous combination of data science and human intelligence.

Scot Thompson, Co-Head of Macquarie Systematic Investments said systematic investing provides the opportunity for a view on every company in an investible universe. “Our aim with these new ETFs is to build a stable, more risk aware and balanced fund portfolio with significantly reduced impact from human bias.”

Benjamin Leung, Co-Head of Macquarie Systematic Investments said: “We’re very conscious of how many stocks we hold, what their weights are, and what the outcome might be from a risk and exposure point of view. We have built a naturally adaptive mechanism so it can adjust to opportunities and risks as they emerge.”

Blair Hannon, ETF Investment Strategist at Macquarie Asset Management said: “These actively managed ETFs can work well as long term core portfolio allocations, as they aim to deliver consistent excess returns. There’s still a role for passive investing at the core, but systematic active ETFs provide investors with the potential for better returns. This is because we don’t just follow an index, we start with it, and add a systematic process that seeks to enhance returns over index performance.”

The launch of the two systematic equity active ETFs builds on an existing range of Macquarie’s active ETFs in Australia and our global ETF platform, to provide investors with even further diversification options.
 

About Macquarie’s new Systematic active ETFs:

Macquarie Systematic Investments has evolved its investment process over 30 years into a robust systematic process that has delivered long-term, consistent returns across a range of strategies for leading super funds and institutions. Macquarie Systematic Investments now brings two active ETFs to the Australian market:

• The Macquarie Core Australian Equity Active ETF (ASX:MQAE) gives investors access to a finely-tuned portfolio of around 100 – 200 ASX shares in a single trade.
  Fees: 0.03% p.a. management fee + performance fee of 20% of outperformance of the benchmark (subject to a high watermark)*
• The Macquarie Core Global Equity Active ETF (ASX:MQEG) comprises around 200 - 500 systematically selected global shares in a single trade.
  Fees: 0.08% p.a. management fee + performance fee of 20% of outperformance of the benchmark (subject to a high watermark)*

Macquarie’s systematic active ETFs feature an attractive management fee, and a performance fee only when the index is exceeded*.

To learn more about Macquarie Asset Management’s global ETF platform, click here.

*Refer to the Product Disclosure Statement for further information on the fees and costs.
 

About Macquarie Asset Management

Macquarie Asset Management is a global asset manager, integrated across public and private markets. Trusted by institutions, governments, foundations and individuals to manage approximately $A938.3 billion in assets, we provide a diverse range of investment solutions including real assets, real estate, credit and equities & multi-asset.

Macquarie Asset Management is part of Macquarie Group, a diversified financial group providing clients with asset management, finance, banking, advisory, and risk and capital solutions across debt, equity and commodities. Founded in 1969, Macquarie Group employs approximately 20,600+ in 34 markets and is listed on the Australian Securities Exchange.

All figures as at 31 March 2024.