How the AASF ETF could be used in portfolios
The Airlie Australian Share Fund invests in 15-35 companies on the Australian stock exchange using a ‘best ideas’ approach to active investing. The fund aims to have no more than 10% of its portfolio in cash. The AASF fund aims to provide long-term capital growth and regular income to their investors.
An investor would invest in this fund if they want to get some exposure to select Australian shares and that with a high conviction approach (i.e. the shares will be picked by the investment team at Airlie).
AASF exceeds our minimum market cap (FUM) criteria
The Magellan AASF ETF had $336.69 million of money invested when we last pulled the monthly numbers. Given AASF’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw the line at $100 million for ETFs in the Australian shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
AASF’s fees & costs explained
Magellan charges investors a yearly management fee of 0.78% for the AASF ETF. This means that if you invested $2,000 in AASF for a full year, you could expect to pay management fees of around $15.60.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% or around $10.20 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Bottom line
This is just a quick overview of the AASF ETF. Before ‘testing the depth of the water with both feet’ so to speak, be sure to read the AASF ETF’s Product Disclosure Statement (PDS), available on the Magellan website, or speak to your financial adviser. For another handy resource, take a look at our Magellan AASF report. You can also use our complete list of ASX ETFs to search for a few different ETFs in the sector and conduct a side-by-side comparison using everything you’ve learned here.