What is the difference between the Vaughan Nelson Global Equity SMID Fund (Quoted Managed Fund) and the Vaughan Nelson Global Equity SMID Fund?
The Vaughan Nelson Global Equity SMID Fund (Quoted Managed Fund) are the listed class units and the Vaughan Nelson Global Equity SMID Fund are the unlisted class units. Both classes exist within a single fund and follow the same investment strategy. The Vaughan Nelson Global Equity SMID Fund (Quoted Managed Fund) is an active exchange-traded fund (Active ETF). Investors can buy and sell shares in the Active ETF through the ASX as they can in any listed company. The Vaughan Nelson Global Equity SMID Fund is an unlisted unit trust. Investors buy and sell units through Investors Mutual as the responsible entity for the Fund.
What is the difference between an actively-managed ETF like the Vaughan Nelson Global Equity SMID Fund (Quoted Managed Fund) and a passively-managed ETF?
With an actively-managed ETF like the Vaughan Nelson Global Equity SMID Fund (Quoted Managed Fund), the investment manager Vaughan Nelson actively selects the underlying companies in which the Fund invests in different proportions to the companies’ weightings in a market index benchmark. A passive ETF holds the underlying companies in the same proportion to their weightings in a market index benchmark.
How do you ensure there is liquidity for trading in the Vaughan Nelson Global Equity SMID Fund (Quoted Managed Fund)?
The ‘marketmaker’ provides liquidity for investors during the ASX Trading Day, by providing bids and offers in the market at a tight spread to the Indicative Net Asset Value (iNAV).
What is the iNAV for the Vaughan Nelson Global Equity SMID Fund (Quoted Managed Fund)?
The Vaughan Nelson Global Equity SMID Fund (Quoted Managed Fund) is designed to trade at a price close to its underlying Net Asset Value (NAV). This means that the price an investor pays for units in the quoted class should closely reflect the underlying assets of the Fund. The iNAV is the indicative or intraday Net Asset Value for the Fund. The iNAV reflects the real-time movements in sharemarkets and currencies during the ASX Trading Day, and for securities not trading during the ASX Trading Day, listed proxy investments (including futures) selected on the basis of correlations with the underlying investments. The iNAV will also account for foreign exchange movements. The iNAV therefore represents the estimated value of the underlying portfolio of the Fund’s stockholdings. The iNAV is updated in real time and published on this website throughout the ASX Trading Day. The market maker uses the iNAV to provide bids and offers.
What is the bid/offer spread for the Vaughan Nelson Global Equity SMID Fund (Quoted Managed Fund)?
The bid/offer spread covers the transaction costs a fund incurs when buying and selling assets, such as brokerage, government taxes, and bank charges. These spreads are applied around the iNAV through the ASX Trading Day.
Why do different prices show for the Vaughan Nelson Global Equity SMID Fund (Quoted Managed Fund)?
We will be showing the end of day NAV (net asset value), which is broadly equivalent to the unit price for the unlisted version of the Fund. We will also be publishing the listed vehicle’s iNAV (an indicative NAV calculated by a third party which represents an approximate NAV based on a number of factors while the market is open). You can find these prices here.
How often does the Vaughan Nelson Global Equity SMID Fund (Quoted Managed Fund) disclose its underlying stockholdings, and where can I find them?
The Vaughan Nelson Global Equity SMID Fund (Quoted Managed Fund) discloses to the ASX its full underlying stockholdings quarterly, within two months after quarter end.
The top 10 holdings are displayed in the Fund's monthly report which can be found on the ASX and on this website.
Do the Vaughan Nelson Global Equity SMID Fund (Quoted Managed Fund) or Vaughan Nelson Global Equity SMID Fund have currency hedging in place?
Both classes of units in the Vaughan Nelson Global Equity SMID Fund are unhedged. The investment manager believes that it does not possess any advantage in predicting currency movements, and believes that its investment success is determined by its fundamental stock research. The investment manager’s analysis has also shown that although currency movements can affect the value of the investment portfolio over shorter time periods, over longer periods, currency movements ‘wash out’.
I have an existing investment in the unlisted Vaughan Nelson Global Equity SMID Fund. How can I switch this to the listed Vaughan Nelson Global Equity SMID Fund (Quoted Managed Fund)?
To move your investment from the unlisted to the listed class of units in the Vaughan Nelson Global Equity SMID Fund, submit a switch form by 4:00pm on a Business Day in Sydney. This day is designated ‘T’, the day of your transaction. The following day (T+1), your holding in the unlisted class of units of the Fund will be redeemed at the NAV price for the quoted class of units of the Fund applicable on the day of your transaction (T).On the same day, your application into the quoted class of units in the Fund will be processed at the NAV price applicable on the day of your transaction (T).You will be notified about your acquisition of shares in the quoted class of units in the Fund on T+2, or two Business Days after you have made the application to switch your investment. Switching between the unlisted and listed class of units in the Vaughan Nelson Global Equity SMID Fund may trigger a Capital Gains Tax (CGT) scenario, so before making any decision to switch, you should consult your tax adviser about any potential CGT consequences. The ASX website’s Investing in ETFs and Other ETPs page may also be helpful.
