VanEck to launch an Australian-first global listed private equity ETF
The VanEck Global Listed Private Equity ETF (ASX: GPEQ) will shortly list on the ASX and provide Australian investors for the first time with access to private equity investments, offering exposure to an important alternative asset class that can help diversity portfolios.
Sydney, 9 November 2021 – The VanEck Global Listed Private Equity ETF (ASX: GPEQ) will shortly list on the ASX and provide Australian investors for the first time with access to private equity investments, offering exposure to an important alternative asset class that can help diversity portfolios.
Arian Neiron, VanEck's CEO and Managing Director Asia Pacific, said: “Traditionally illiquid and difficult to access, this ETF will be the only one of its kind in Australia. Private equity offers investors long-term historical outperformance over public markets, yet traditionally it has only been accessible by institutional and ultra high net worth investors. GPEQ changes that and allows all investors to participate in private equity investments for the first time through a single trade on the ASX.
“As an alternative investment, private equity is important for investor’s portfolios as it displays a low correlation with equities and bonds as well as offering attractive risk and return characteristics,” said Neiron.
“In addition, the evergreen opportunities are huge. The private equity asset class is significantly bigger than the publicly listed market. An estimated 98% of companies are private while a mere 2% of companies are listed. The VanEck Global Listed Private Equity ETF (GPEQ) will open up that significant market and enable investors to participate in private equity, which has gained in appeal during the current low interest-rate environment.”
GPEQ will track the LPX50 Index, which displays strong historical performance and with relatively low volatility. The LPX50 Listed Private Equity Index is designed to represent the global performance of the 50 most highly capitalised and liquid listed direct, indirect and private equity managers. The benchmark index is diversified across regions and private equity investment styles. The 10-year performance of the Australian dollar index to 31 October 2021, 2021, is 20.9% per annum.
Alternative asset classes are becoming increasingly important in strategic asset allocation. In addition, in times of crisis such as the COVID-19 pandemic, private equity has become even more important and offered a finance lifeline. “Private equity has provided companies with capital and industry expertise to help them weather the COVID-19 crisis better. Private equity plays an important role in the economy too; it can help small enterprises grow, and, in turn, generate potentially strong returns for investors,” Neiron said.
“GPEQ will also enable investors to participate in mega trends such as the huge explosion in technology companies developing breakthrough technologies. GPEQ will for the first time offer investors direct access to a well-diversified portfolio of global listed private equity assets,” said Neiron.
VanEck is one of the world’s largest issuers of ETFs (Exchange Traded Funds), managing in excess of US$75 billion globally for individual and institutional investors. Founded in New York in 1955, VanEck is a pioneer in international investing and in gold funds, launching the first gold equities fund and the first gold ETF in the US.
In Australia, VanEck is one of the fastest growing ETF providers in the country and a leader in ‘smart beta’ investment strategies. We have 29 ETFs on ASX that focus on delivering superior performance through beyond-the-usual approaches and providing access to asset classes typically unavailable to Australian investors.
ABOUT LPX AG
LPX AG is a leading research house in the field of Listed Alternatives with a focus on Listed Private Equity and Listed Infra¬structure. LPX AG was founded in 2004 and launched the first investable private equity indices: the LPX Listed Private Equity Index Series. The LPX index series are used as representative performance benchmarks or asset management mandates. The indices are also used as a basis for a variety of innovative index-linked financial products.
General information only
This information is prepared in good faith by VanEck Investments Limited ACN 146 596 116 AFSL 416755 (‘VanEck’) as responsible entity and issuer of units in VanEck ETF’s traded on the ASX. Units in fund are not currently available. GPEQ has been registered by ASIC and VanEck has lodged an application with ASX for units in the fund to be admitted to trading status on ASX. The PDS has been lodged with ASIC and will be available at www.vaneck.com.au after the exposure period. The Target Market Determination will be available at www.vaneck.com.au. You should consider whether or not any VanEck fund is appropriate for you. Investing in ETFs have risks, including possible loss of capital invested. See the PDS for details. No member of the VanEck group guarantees the repayment of capital, the payment of income, performance, or any particular rate of return from any fund.