Grosvenor has officially launched its new range of exchange-traded fund (ETF) products, first flagged this August, naming five underlying managers.
The BlackRock-owned iShares, Vanguard, State Street (via its SPDR range), PowerShares, and Van Eck Global’s ETF unit Market Vectors, all feed at least one product each into the Grosvenor ‘Specialist Series’ range of four portfolio investment entity (PIE) funds.
Under the Specialist Series structure, 11 US- and Australia-domiciled ETFs have been grouped under four themes – healthcare, technology, resource sustainability, and precious metals – which are bundled up as PIEs.
In a statement, Grosvenor chief investment officer, David Beattie, said the group launched the ETF-based funds in response to demand from financial advisers.
“There are some key themes that we keep hearing from advisers,” Beattie said. “They can see opportunities and their clients want in, but they can’t always find a product which gives them quick and easy exposure.”
With the exception of the Global Resources Sustainability Fund, which has a management fee of 1.5 per cent, the Specialist Series products have a base cost of 1.25 per cent.
According to the Specialist Series investment statement, Grosvenor may also “charge a 1% administration fee for each regular contribution unless it is made by direct debit”.
“Your financial adviser may also charge a fee capped at 3.5% for each regular contribution made,” the investment statement says.
Beattie said while the Specialist Series should appeal to advisers who already supported Grosvenor, the products were open to the wider market.
“It’s always been an important part of our business that we don’t insist advisers align with us,” he said in the statement. “We believe if we provide a great service and a comprehensive range of investment solutions, then advisers will choose to work with us.”
A Grosvenor spokesperson said the firm would look to launch further ETF-based products if the first tranche proved successful.
The full list of underlying ETFs in the Specialist Series is included below with underlying gross expense ratios in brackets (%):
Healthcare
- iShares Global Healthcare ETF (0.47);
- iShares Nasdaq Biotechnology ETF (0.46); and,
- SPDR Health Care Select Sector ETF (0.15).
Technology
- iShares Global Tech ETF (0.47);
- Vanguard Info Technology ETF (0.12); and,
- iShares Multimedia Networking ETF (0.48).
Resource Sustainability
- PowerShares Global Clean Energy ETF (0.76); and;
- PowerShares Water Resources ETF (0.61).
Precious Metals
- SPDR Gold Trust (0.40);
- iShares Silver Trust (0.50); and,
- Market Vectors Fold Miners ETF (0.53).