More Canadian ETFs continue to hit the market, including fixed-income, equity and balanced funds, giving investors a wider array of products to choose from.
On Wednesday, Russell Investments debuted five ETFs, including two fixed-income and three equity funds.
Its new fixed-income funds, which each have a 0.35% management fee, include:
- Russell Investments Fallen Angels ETF (TSX: HALO), which targets bonds that have been downgraded from investment grade to high yield. It’s designed to act “as a potential return enhancer” and diversify a fixed-income allocation, a release said.
- Russell Investments Core Plus Fixed Income ETF (TSX: RBND), which allocates approximately 80% to Russell Investments’ active fixed-income pool ETF (TSX: RIFI) and 20% to HALO. It’s designed to offer a diversified “core plus solution,” the release noted.
Meanwhile, Russell Investments’ three new equity ETFs provide Canadian investors with access to its multi-factor equity strategies across Canadian, U.S. and international markets.
They were launched as ETF series units of mutual funds that have been available to Canadian investors since 2018. They include the Russell Investments Multi-Factor Canadian Equity Pool – ETF Units (TSX: RQCA), Multi-Factor U.S. Equity Pool – ETF Units (TSX: RQUS), and Multi-Factor International Equity Pool – ETF Units (TSX: RQIN). Each has a 0.3% management fee.
For its part, Mackenzie Investments launched the following ETFs on Tuesday:
- Mackenzie Global Value ETF (TSX: MAGV), which is sub-advised by Dallas, Texas-based Barrow Hanley Global Investors and seeks untapped investment opportunities across developed and emerging markets. It has a 0.8% management fee.
- Mackenzie US Value ETF (TSX: MAUV), which is sub-advised by Boston, Mass.-headquartered Putnam Investments and targets U.S. companies with strong cash flows and attractive valuations. It has a 0.8% management fee.
- Mackenzie GQE Global Balanced ETF (TSX: MBQG), which is managed by the Mackenzie multi-asset strategies team and invests in underlying ETFs to provide investors with diversified equity and fixed-income exposure across developed and emerging markets. It has a 0.7% management fee.
- Mackenzie US All Cap Growth ETF (TSX: MAUG), which is sub-advised by Putnam Investments and targets U.S. companies with potential for above-average growth in an effort to outperform in various market environments. It has a 0.8% management fee.
Meanwhile, CIBC Asset Management Inc. has introduced four ETFs as part of its partnership with Avantis Investors, which is a subsidiary of Kansas City, Mo.-headquartered American Century Investments, with plans to roll out four more in the coming weeks.
On Friday, it launched the following funds, which all seek to achieve long-term capital appreciation:
- Avantis CIBC Canadian Equity ETF (TSX: CACE), which invests primarily in equity securities of Canadian companies across sectors and market capitalizations. It has a 0.19% management fee.
- Avantis CIBC U.S. All-Cap Equity ETF (TSX: CAUS), which invests primarily in U.S. equities across sectors and market capitalizations. It has a 0.19% management fee.
- Avantis CIBC U.S. Large Cap Value ETF (TSX: CALV), which invests primarily in equity securities of large-capitalization U.S. companies. It has a 0.25% management fee.
- Avantis CIBC U.S. Small Cap Value ETF (TSX: CAUV), which invests primarily in equity securities of small-capitalization U.S. companies. It has a 0.35% management fee.
IAS, JPMAM to launch new U.S. active equity fund
Independent Advisor Solutions (iAS) and J.P. Morgan Asset Management (JPMAM) have announced a new partnership, which will see the birth of a new U.S. active equity fund.
The U.S. Active Equities MiBLOX, an actively managed U.S. equity fund sub‑advised by JPMAM and available in Canada, is expected to be made available exclusively to advisors through iAS in late March.
The new product offers advisors exposure across the U.S. equity landscape, from large‑cap leaders to mid‑ and small‑cap growth opportunities. It leverages insights from J.P. Morgan’s global research platform.
JPMAM ups fund risk rating
Separately, JPMAM announced that it tweaked the risk rating for one of its funds after a review of its product lineup.
On Wednesday, the JPMorgan Nasdaq Equity Premium Income Active ETF (TSX: JEPQ) had its risk rating upgraded to “medium” from “low-to-medium.”
No other changes will be made to the fund as a result.
RPIA closing fund’s discounted share classes
RPIA says it will soon close its discounted founder share classes for its RP Alternative Credit Opportunities Fund to new purchases.
Since inception, the fund has offered S and S-USD share classes, which have been offered to “founding” investors at a 15-basis-point management fee discount.
In a release, RPIA said the discounted founder share classes will no longer be available for purchase by new investors as of Feb. 27, 4 p.m. ET.
After that, investors who hold these units will only be able to purchase new class S or S-USD units through reinvested distributions and pre-authorized contributions, it noted.
Franklin Templeton announces fund fee cuts and more
Franklin Templeton Canada has announced updates across its investment fund lineup, including fee reductions, proposed investment objective changes and series terminations.
Effective March 1, the firm will reduce the management and administration fees for each series of the actively managed Franklin Innovation Fund.
Also, subject to investor approval at a meeting held in Toronto on or about May 4, it plans to change the investment objectives of the Franklin Quotential Balanced Growth Portfolio, Franklin Quotential Balanced Income Portfolio and Franklin Canadian Balanced Fund.
It’s proposing to change the investment objectives of Franklin Quotential Balanced Growth Portfolio and Franklin Quotential Balanced Income Portfolio to align with that of Franklin Templeton Canada’s other so-called Quotential strategies, “allowing more flexibility with asset allocation.” If approved, the investment objective changes will take effect on or around May 5.
As for the Franklin Canadian Balanced Fund, it’s proposing to change the investment objective of the fund to allow it to invest primarily in Canadian equities and fixed-income securities, instead of in a portfolio of Franklin Templeton funds. If approved, the investment objective change, and associated changes to the fund’s investment strategies and risks, will take effect on or around July 17.
Investors in these funds as of March 23 will receive special meeting materials, while details of the proposed investment objective changes will be available on Franklin Templeton’s website in an information circular on or around April 2.
Further, the firm has closed the high-net-worth series of the following funds to new purchases as of Thursday:
- Franklin ClearBridge Canadian Small Cap Fund (PA, PF series units)
- Franklin Royce Global Small Cap Premier Fund (PA, PF series units)
- Templeton Global Bond Fund (PA, PA-hedged, PF, PF-hedged series units)
These fund series are set to be terminated after markets close on May 15, and their investments will be consolidated into the corresponding retail series of the same fund, the release noted.
Lastly, Franklin Templeton has decided to delist the ETF series of the Franklin ClearBridge International Growth Fund (TSX: FCSI) and the ETF series of Franklin Global Growth Fund (TSX: FGGE) after markets close on May 8. It plans to subsequently terminate the ETF series on May 15. Investors are due to receive notice at least 60 days prior to the termination. FCSI and FCGE are closed to new purchases as of Thursday.
Sub-advisor changes announced
CI Global Asset Management (CI GAM) will take over as sub-advisor of several Invesco Canada Ltd. investment funds as part of its purchase of Invesco’s Canadian fund business.
On Jan. 13, Invesco announced that it reached a deal to sell the management agreements related to its Canadian investment fund business to CI GAM.
In a release, Invesco said that upon the closing of the transaction, CI GAM will take over as the manager and portfolio manager of certain mutual funds and ETFs managed by Invesco and NEI Investments.
As a result, NEI will soon no longer provide non-discretionary advice on ESG matters to the following ETFs:
- Invesco ESG NASDAQ 100 Index ETF
- Invesco S&P 500 ESG Index ETF
- Invesco S&P International Developed Dividend Aristocrats ESG Index ETF
- Invesco S&P International Developed ESG Index ETF
- Invesco S&P US Dividend Aristocrats ESG Index ETF
- Invesco S&P/TSX Canadian Dividend Aristocrats ESG Index ETF
- Invesco S&P/TSX Composite ESG Index ETF
For now, Invesco Capital Management LLC will continue to act as the discretionary sub-advisor of the Invesco ETFs. After the transaction closes, CI GAM will assume full investment responsibility for the funds.
“The departure of NEI as non-discretionary sub-advisor from the Invesco ETFs will not result in any changes to the investment objectives or investment strategies of the Invesco ETFs,” the release noted.
Meanwhile, Scotia Global Asset Management has appointed India-headquartered ICICI Prudential Asset Management Company as sub-advisor for its Scotia India Equity Fund.
The change is expected to take effect on or around March 16. No other changes will be made to the fund as a result.
Correction: This story has been updated to reflect the correct location of American Century Investments’ headquarters.