Antipodes successfully completes active-ETF transition

Antipodes has successfully completed a Scheme of Arrangement that will see shareholders of Antipodes Global Investment Company Limited (ASX: APL), a closed-end listed investment company (LIC), transition to become unitholders of Antipodes Global Shares (Quoted Managed Fund), an open-end active ETF (ASX: AGX1). 

The transition materially improves scale and liquidity of AGX1, with circa 6000 additional unitholders boosting its market cap to around $600 million. This makes AGX1, which launched in 2018, one of the largest active ETFs trading on the ASX. 

Andrew Findlay, Antipodes’ Managing Director, said the successful transition comes following thorough consultation with APL shareholders over the past 18 months. 

“As an active ETF, AGX1 trades throughout the day at its indicative NAV less a spread. So for APL shareholders we saw this transition as the best solution to remove the uncertainty of their investment trading at a premium or discount to NTA which often occurs with LICs,” said Mr Findlay. 

“There is no doubt that demand for active ETFs is increasing and we are very pleased to continue providing access to our differentiated approach to global equities via AGX1.” 

Looking ahead to 2022, Jacob Mitchell, Antipodes’ Chief Investment Officer, reinforced the importance of a value-oriented investment approach within share portfolios. 

“Our pragmatic value approach has provided smoother outcomes during what has been a challenging few years for value managers. However, we think it is imperative investors consider the valuation extremes that currently exist in global equity markets and position for some significant factors that are beginning to come into play, such as higher inflation and rising interest rates, globally,” said Mr Mitchell. 

“The AGX1 portfolio includes, in our view, some of the most resilient global businesses with pricing power and the ability to continue growing in a higher inflation environment. Importantly, we have been able to build exposure to these types of businesses at attractive valuations as investors continue to favour a very narrow group of companies trading at some of the highest P/E multiples seen in decades.” 

New AGX1 units will appear in the broking accounts of APL shareholders from December 17, 2021.