Reduced management fees for IFRA and REIT

VanEck is pleased to announce it is reducing the management fees for both its VanEck FTSE Global Infrastructure (Hedged) ETF (ASX: IFRA) and VanEck FTSE International Property (Hedged) ETF (ASX: REIT) to 0.20% p.a. effective 3 July 2023.

Arian Neiron, CEO and Managing Director, VanEck, Asia Pacific said: “As part of a fee review, we have decided to reduce IFRA and REIT’s management fees. The new reduced fees will enable more investors to gain exposure to VanEck’s infrastructure and international property strategies.

“Investor interest in our infrastructure and international property funds has been strong this year and it’s not surprising given the reliable income stream IFRA and REIT offer investors. By reducing our management fees we are enabling more investors to gain access to the opportunity that these funds offer.

“IFRA gives investors access to a suite of global infrastructure companies which are well positioned to benefit from the estimated $60 trillion global outlay needed to upgrade aging utilities by 2035. With IFRA, investors receive attractive, stable income streams, often regulated and CPI-linked which offer more defensive characteristics in high-inflation environments than other securities.”

IFRA was Australia’s first global infrastructure ETF and remains Australia’s biggest. It tracks the FTSE Developed Core Infrastructure 50/50 Hedged into Australian Dollars Index, the widely regarded market benchmark for the sector, which includes the companies that own and operate the networks and foundations for modern society to function including fibre networks, telecommunication towers, transport, energy, water and social services.

REIT gives investors access to a diversified portfolio of international property securities from developed markets (ex Australia) with returns hedged into Australian dollars. REIT tracks the FTSE EPRA Nareit Developed ex Australia Rental Index AUD Hedged, the widely regarded benchmark for the sector.

Unlike most global listed infrastructure and global listed property funds, VanEck adopts ‘Taxation of Financial Arrangements’ (ToFA) currency hedging rules. The rules enable smooth income to be maintained over time. VanEck’s tax strategy gives IFRA and REIT the ability to offer stable income.

“We are confident that the new fees encourage more investors and their advisers to consider IFRA and REIT as diversifiers for their portfolios. We think these asset classes represent core exposures and these products are being used by investors as the market beta strategic asset allocation in portfolios. The new fees are consistent with our business objective of providing investors with opportunities to access the best investment outcomes,” said Neiron.