Toronto-based Provisus Wealth Management Ltd. will launch nine platform-traded funds (PTFs) on NEO Connect this week, the company announced Tuesday.
Designed for fee-based investors and advisors (whether discretionary or non-discretionary), the new PTFs will be available on the NEO Connect distribution platform starting Thursday.
Though actively managed, management fees for the PTFs are more than 25% lower than the prorated market cap weighted average equity ETFs’ fees, Provisus says in a news release, as the funds use the company’s “pay for performance” fee structure.
“Clients pay fees similar to traditional ETFs if the PTFs do not outperform an industry standard benchmark,” Chris Ambridge, president of Provisus, says in a statement. “When the PTFs outperform, clients pay a performance fee equal to 20% of the performance of the PTF above the specified benchmark.”
“In short, this performance fee model directly aligns the manager’s proﬁtability to the results achieved by clients.”
The PTFs include: Canadian Equity, U.S. Equity, International Equity, Emerging Markets Equity, Global Real Estate and High Yield Fixed Income.
Provisus’s fund of funds PTFs are: North American Equity, Global Equity and Total Equity.