You might be sitting back and considering the Magellan Airlie Australian Share Fund (Managed Fund) (ASX: AASF) and thinking that May could be as good of a time as any to take closer look. Here’s how we would start our research.
Find out what the ETF does
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’s FUM meets our hurdle
The Magellan AASF ETF had $289.69 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.
Pay attention to yearly costs & fees
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.
Our takeaway
If you’re thinking about investing in AASF, bear in mind that this is just an introductory glance at the ETF. To explore further, check out our free Magellan AASF report. And for good measure, search our complete list of ASX ETFs for similar ETFs in the Australian shares sector to do a good comparison.
