Perpetual Launches First Fixed Income and Credit Active ETF on ASX

Perpetual Asset Management has launched the Perpetual Diversified Income Active ETF, providing investors access to senior debt and subordinated bank debt. The ETF is a unit class of the Perpetual Diversified Income Fund, which has $2.5 billion in funds under management. Fixed income ETFs have seen strong support in recent months, with $4.4 billion invested in the first half of 2025. The new ETF aims to offer investors a safer alternative with reduced volatility and better capital preservation than equities.

Perpetual Asset Management has introduced the Perpetual Diversified Income Active ETF, providing investors with access to senior debt and subordinated bank debt. This new exchange-traded fund (ETF) is a unit class of the Perpetual Diversified Income Fund (DIF), which currently manages $2.5 billion in funds [1].

The Perpetual Diversified Income Active ETF (ASX: DIFF) offers daily liquidity and no minimum investment, making it a convenient option for investors seeking exposure to credit and fixed-income securities. The ETF is managed by Vivek Prabhu, Perpetual’s head of credit and fixed income, who has overseen the DIF fund for the past two decades, delivering a net return above core inflation in 16 of the last 20 financial years [1].

Fixed income ETFs have seen strong support in recent months, with $4.4 billion invested in the first half of 2025, compared to $1.8 billion in the prior corresponding period [1]. The new ETF aims to provide investors with a safer alternative to equities, offering reduced volatility and better capital preservation. Prabhu noted that fixed income assets such as cash, bonds, and credit offer defensive properties and can help investors generate income, diversify their portfolios, preserve capital, and hedge against economic conditions [1].

In the broader context of the global economy, the launch of the Perpetual Diversified Income Active ETF reflects a growing interest in fixed income investments. Travis Spence, global head of ETFs at JP Morgan Asset Management, has suggested that active fixed income ETFs are an area of particular interest for institutional investors due to their liquidity benefits [1].

Perpetual is not the only fund manager to launch fixed income ETFs recently. Betashares launched a Global Aggregate Bond Currency Hedged ETF earlier this month, while VanEck introduced an Australian RMBS ETF, which will invest in AAA-rated Australian residential mortgage-backed securities [1].

References:
[1] https://www.investordaily.com.au/news/57600-perpetual-announces-first-active-fixed-income-and-credit-etf
[2] https://www.ainvest.com/news/yacktman-asset-management-portfolio-q2-2025-update-2508/
[3] https://www.tradingnews.com/news/bitcoin-etf-inflows-plummet-to-72-million-usd
[4] https://www.perpetual.com.au/insights/new-perpetual-active-etf-targets-credit-and-fixed-income-swet-spot/