Case Study - ASX-listed Munro Global Growth Fund
GSFM and Munro Partners have launched their first ASX-quoted fund, a listed version of the the Munro Global Growth Fund (Hedge Fund), with ASX ticker MAET. Munro Partners founding partner and CEO, Ronald Calvert, explains why listening to advisers is so important to a successful launch.
What goes into launching a new product?
A lot went into the launch of the Munro Global Growth Fund (Hedge Fund), with ASX ticker MAET.
We had previously launched two funds in Australia – the Munro Global Growth Fund (absolute return) and the Munro Concentrated Global Growth Fund (relative return) - this was our first foray into a quoted product on the ASX.
Like our previous funds, it was a collaborative effort internally at Munro Partners and with our responsible entity, GSFM, as well as our service providers. Given the quoted nature of MAET, we also collaborated with the ASX and introduced market maker and iNAV (intraday net asset value) providers, adding to the complexity of the launch but with the aim of making it more convenient and simpler for investors to access the Munro Global Growth Fund via MAET.
Why did you decide to launch now?
MAET was launched in response to market demand.
Investors and their financial advisers are increasingly drawn to exchange traded products because they offer an easy way to access the Munro Partners’ expertise in identifying the winners in some of key structural changes that occur in our world today.
Our flagship product, the Munro Global Growth Fund, has been operating for over four years with over $800 million in funds under management with a 16.9 per cent per annum return since inception (to 30 September 2020).
MAET offers simple access to the Munro Global Growth Fund with no minimum investment, can be traded whenever markets are open and has a transparent pricing structure. MAET has no paperwork, and can be viewed in an investor’s trading account alongside their listed investments
How did you research market opportunities?
Our distribution partner in GSFM is constantly engaging with advisors. The consistent feedback, and increasingly so, was advisors want to access Munro Partners, but through an exchange.
This was also consistent with our own feedback – from direct and SMSF investors - towards the simplicity and convenience of quoted products. And we will always listen to those who have entrusted or may entrust a portion of their wealth with Munro Partners.
What challenges did you face and how were they overcome?
There are complexities to any new product launch and with a backdrop of COVID-19, ASIC’s review, live iNAV pricing, internal market making, quotation on the ASX and new service providers, MAET obviously threw out a number of challenges over the journey!
However, we worked collaboratively and diligently, undertook significant pre-launch testing and added to our operational side of the business prior to the quotation of MAET.
How did you decide on service providers?
We work closely with our responsible entity and distribution partner, GSFM, and given that MAET invests in the Munro Global Growth Fund, we wanted to ensure consistency for our clients in our service providers of JPMorgan and Mainstream Fund Services. With the quoted nature of MAET, we undertook extensive research and testing into the market maker function, opting with experienced provider Macquarie Securities, and iNAV provider, Solactive.
Can you explain the fee structure?
The fee structure was designed so that investors would be indifferent in how to access the Munro Global Growth Fund. It therefore has the same management costs as the Munro Global Growth Fund, with a 1.35% management fee and a 10% performance fee once above the hurdle rate and high watermark. As MAET is a new Fund quoted on the ASX, there may be brokerage fees to buy and sell the units on the ASX via a broker.