Advisor’s Edge regularly lists notable developments in Canada’s investment product landscape. Here are some newly released funds.
- TD Asset Management Inc. has launched a multi-strategy alternative fund for clients seeking low volatility. The TD Alternative Risk Focused Pool, launched on Nov. 1, invests mainly in other TD funds and can use leverage, short-selling and borrowing. It lets clients “enhance their traditional portfolio through exposure to both conventional and alternative investment strategies,” said Michael Craig, managing director and head of asset allocation and derivatives with TDAM. The fund is for clients seeking “a lower level of volatility typically associated with fixed income investment,” a release said. Management fees are 1.55% for series A and 0.8% for Series F. The risk rating is low.
- iA Financial Group announced the “exclusive Canadian” launch of a Wellington Management segregated fund that uses a contrarian approach. Global Equity Opportunistic Value (Wellington), launched on Oct. 24, seeks to identify high-potential companies from around the world that are sometimes overlooked by other investors. The risk rating is low to moderate and the portfolio manager is Massachusetts-based Wellington Management. The fund is available in the Classic 75/75 and 75/100 series of the IAG Savings and Retirement Plan as well as in My Education+. Fees range from 2.70% to 2.95% for the Classic Series 75/75, an IA spokesperson said in an email.
- iA also launched four ESG segregated funds on Oct. 24. All four are available in the Classic 75/75 and 75/100 series of the IAG Savings and Retirement Plan as well as in My Education+, with fees ranging from 2.70% to 2.95% for the Classic Series 75/75.
- Sustainable Canadian Equity, whose portfolio manager is Industrial Alliance Investment Management Inc. (iAIM), uses an ESG theme and invests mainly in Canadian firms with “best practices” in sustainable investing and has a moderate risk rating.
- Sustainable Balanced Portfolio, managed by iAIM, aims for a 50/35/15 fixed income/Canadian equity/global equity split and uses ESG analysis. The risk rating is low to moderate.
- Fidelity Climate Leadership Balanced, managed by Fidelity Investments — a 60/40 mix of the Fidelity Climate Leadership Fund and the Fidelity Climate Leadership Bond Fund — is designed provide exposure to the global decarbonization trend. The risk rating is low to moderate.
- Climate Strategy (Wellington) — managed by Wellington Management — focuses on low-carbon electricity, energy efficiency, water and resource management, climate-resilient infrastructure and low-carbon transport. The risk rating is moderate.
- Manulife Investment Management has launched two active international ETFs along with U.S. dollar units of two existing ETFs.
- The Manulife Smart International Dividend ETF (TSX: IDIV.B), for clients looking for steady income and long-term growth, invests primarily in international dividend-paying securities. The Manulife Smart International Defensive Equity ETF (TSX: IDEF.B) is for clients looking for international equity securities while seeking to reduce overall market sensitivity. Both ETFs — which started trading on Nov. 9 — have a 0.35% management fee and medium risk rating.
- The U.S. dollar versions of the Manulife Smart U.S. Dividend ETF (TSX: UDIV.U) and the Manulife Smart U.S. Defensive Equity ETF (TSX: UDEF.U) also started trading on Nov. 9. Both have a 0.28% management fee and medium risk rating, and their Canadian hedged and unhedged versions launched in 2020.
- CI Global Asset Management has announced two active fixed-income funds.
- The CI Global Bond Currency Neutral Fund and ETF (TSX: CGBN), available as of Nov. 1, targets clients seeking regular income over the medium term while hedging their foreign currency exposure. It invests primarily in fixed income and floating corporate and government securities — including emerging markets — and uses derivatives to reduce currency fluctuations. Management fees are 1.0% for series A, 0.5% for series F and 0.7% for the ETF. The risk rating is low. “Recent moves in interest rates and the current challenges in capital markets demonstrate that active management in fixed income is more important than ever before,” said Roy Ratnavel, executive vice-president and head of distribution with CI GAM, in a release.
- The CI Global Investment Grade ETF (TSX: CGIN), which began trading on Nov. 1, invests primarily in corporate and government debt and could also buy floating-rate instruments, mortgage-backed securities, asset-backed securities, inflation-linked bonds and preferred shares. The management fee for the ETF is 0.5% and the risk rating is low. CI expects the accompanying mutual funds will be available on Nov. 22. The U.S.-dollar hedged version trades as CGIN.UN.
- Dynamic Funds has launched an ETF for investors seeking both interest income and potential long-term capital growth. The Dynamic Active Discount Bond ETF (TSX: DXDB), which started trading on Nov. 8, invests primarily in Canadian investment grade corporate debt. It “provides the potential for more tax-efficient capital gains along with interest income” and “can be used as a complement to the core bond allocation of an investor’s portfolio,” Dynamic Funds managing director Mark Brisley said in a release. The management fee is 0.35% and the risk rating is low.
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