What’s new from fund manufacturers

By Greg Meckbach | July 20, 2022 | Last updated on July 20, 2022
2 min read

Advisor’s Edge regularly lists notable developments in Canada’s investment product landscape. Here are some newly released funds as well as some management fee reductions on existing funds:

  • ESG investors now have access to a new fund from Purpose Investments Inc., whose Black Diamond Impact Core Equity Fund launched on July 12. With a risk rating of low to medium, the ETF version (TSX: BDIC) and Series F of the mutual fund have a management fee of 0.95%, while the fee on Series A of the mutual fund is 1.95%. The fund offers “diverse exposure across equity securities of companies all around the world that demonstrate a forward-looking sensitivity” to ESG factors, Purpose said in a press release. The subadvisor is Black Diamond Asset Management Inc.
  • Tired of paying management fees on bond funds? Effective July 14, Invesco Canada Ltd. is no longer charging the 0.2% management fee on its 1-3 Year Laddered Floating Rate Note Index ETF (TSX: PFL). Invesco announced on July 12 the fee has been waived until at least Aug. 31, 2023. With a risk rating of low, the ETF holds AAA-rated and AA-rated short-term investment-grade government, agencies or provincial floating rate notes. “The laddering structure of PFL and short duration of underlying securities may help to reduce the interest-rate sensitivity of a portfolio in the current environment,” Invesco said in a press release.
  • CIBC Asset Management Inc. is reducing management fees for its Renaissance Global Health Care Fund on Sept 1, 2022. The fee for series A will be 2.1%, down from 2.5%, while the fee for Series F will be 1.1%, down from 1.5%. The fund invests primarily in companies that design, develop, manufacture and distribute health-care products — including the medical technology, biotechnology, health care and pharmaceutical sectors. The risk rating is medium. Returns were 8.2% in 2021 and 9.2% in 2020. The fund is down 13.2% this year.
  • A Phillips, Hager & North Investment Funds Ltd. corporate bond fund — originally capped to new investors early in the pandemic — is open again as of July 12. Parent firm RBC Global Asset Management Inc. said in a release that the Phillips, Hager & North High Yield Bond Fund has a limited amount of additional capacity, allowing for purchases by new investors. “RBC GAM Inc. has identified an opportunity to deploy capital in higher quality fixed-income instruments over the next several months to take advantage of current risk-adjusted yields,” a release said. RBC reserves the right to cap the fund or otherwise restrict investment at a later date. The fund — originally capped to new investors on April 17, 2020 — has a risk rating of low. The management fee is 1.43%. As of May 31, 14.3% of the fund was comprised of cash and cash equivalents, with the rest invested in corporate bonds.

If you would like us to consider your launch, email Greg Meckbach at greg@newcom.ca.

Greg Meckbach