Asset managers are expanding access to their investment strategies with the launch of new ETF series of existing mutual funds.
On Wednesday, the RBC iShares alliance introduced ETF series for the RBC Emerging Markets Bond Fund (Cboe: REMB), RBC Global Corporate Bond Fund (Cboe: RGCB) and RBC High Yield Bond Fund (Cboe: RHYB). The new offerings began trading on Wednesday.
The RBC Emerging Markets Bond Fund invests primarily in government debt securities of emerging market countries, while the RBC Global Corporate Bond Fund focuses on investment-grade corporate debt securities from anywhere in the world, and the RBC High Yield Bond Fund invests in corporate debt securities issued by Canadian and U.S. companies.
REMB and RHYB both have a 0.75% management fee. RGCB’s management fee is 0.6%.
On Aug. 6, Purpose Investments Inc. listed an ETF series of the Purpose Structured Equity Yield Fund (TSX: PSY).
The fund provides investors with exposure to North American and global equity securities. It’s diversified across global reference indices and maturities and has an actively managed derivatives strategy, Purpose noted in a release.
PSY has a 0.65% management fee.
Equiton rolls out U.S. private real estate fund
Burlington, Ont.-based Equiton has rolled out a new private real estate investment fund that invests in multi-family rental properties in the U.S.
The Equiton US Residential Income Fund Trust is the asset manager’s fifth open-ended private real estate fund and its first focused on properties in the U.S.
In a release, Equiton said the fund will initially focus on “key markets experiencing strong demographic trends and employment growth,” with early acquisitions in the Sun Belt, a region spanning Florida, Texas and other southern U.S. states. It noted that the multi-family sector in the U.S. is far larger than the one in Canada and therefore offers “significantly more opportunities” for investors.
The fund is actively managed and is designed to provide investors with “stable and growing” monthly distributions, the firm said in a fund document.
The fund is available for purchase in Canadian and U.S. dollars, with minimum initial investments starting at $25,000 in either currency.
Equiton had roughly $1.7 billion in assets under management as of March 31.
Scotia GAM gets green light for proposed fund mergers
Scotia Global Asset Management (Scotia GAM) says it’s proceeding with two fund mergers after receiving investor approval. It’s also making changes to its Dynamic fund lineup.
The Scotia Income Advantage Fund will be merged into the Scotia Dividend Balanced Fund, and the Scotia Global Small Cap Fund will be merged into the Scotia Global Equity Fund. The mergers are expected to happen on or around Sept. 11.
Meanwhile, the Dynamic Canadian Bond Fund will be merged into the Dynamic Active Core Bond Private Pool, whereas the Dynamic Total Return Bond Fund will be merged into the Dynamic Tactical Bond Private Pool. These mergers are expected to occur on or around Sept. 4.
Scotia GAM will handle all costs associated with the mergers.
The fund manager has also made some changes to its Dynamic fund lineup.
For one, it said it’s received investor approval to update the investment objectives of the Dynamic Dividend Advantage Fund and Dynamic Dividend Advantage Class to allow the fund portfolios to invest beyond dividend- or income-paying equity securities.
As well, it’s updated the portfolio of the Dynamic Global Balanced Fund so that the equity allocation of the portfolio is between 60% and 90% of the fund’s net asset value (NAV), while the fixed-income portfolio will comprise between 10% and 40% of its NAV. This change took effect on Wednesday.
Lastly, Scotia GAM said it’s renaming the Dynamic Real Estate & Infrastructure Income II Fund to the Dynamic Real Estate & Infrastructure Income Fund. The change will take place on or around Sept. 18.
Upcoming target-date bond fund terminations
A pair of fund managers have shared details about upcoming target-date bond fund terminations.
In a release on Wednesday, RBC Global Asset Management Inc. (RBC GAM) said the RBC Target 2026 Canadian Government Bond ETF (TSX: RGQO), RBC Target 2026 Canadian Corporate Bond Index ETF (TSX: RQO) and RBC Target 2026 U.S. Corporate Bond ETF (TSX: RUQO/RUQO.U) are set to mature after markets close on Sept. 11.
In anticipation of this, the funds have stopped accepting new unit purchases as of market close on Wednesday.
Redemption requests for the RBC ETFs will be accepted until market close on Sept. 8. The funds are expected to be voluntarily delisted from the TSX the following day.
Investors can continue to buy or sell units of the funds until the delisting date. All units still held by investors after the delisting date will be subject to a mandatory redemption.
Separately, CIBC Global Asset Management (CIBC GAM) says the CIBC 2026 Investment Grade Bond Fund and the CIBC 2026 U.S. Investment Grade Bond Fund are set to terminate on or around Nov. 27.
As previously announced, series A, F, O and S of the funds were closed to all new purchases on April 29. And, as of Thursday, purchases of ETF series units will no longer be accepted, “except in limited circumstances,” CIBC GAM noted in a release.
ETF series units of the CIBC 2026 Investment Grade Bond Fund (Cboe: CTBB) and the CIBC 2026 U.S. Investment Grade Bond Fund (Cboe: CTUD.U) will be voluntarily delisted on or around Nov. 25.
Investors have until market close on the delisting date to redeem units of the CIBC funds. Any units still held on the termination date will be subject to a mandatory redemption.
CIBC GAM updates, streamlines fund offerings
Separately, CIBC GAM has announced lower investment minimums for two funds and terminations for certain mutual fund classes, which it says are part of its “ongoing commitment to simplify its fund offerings and ensure clients access investment solutions that best meet their financial goals.”
As of Thursday, the minimum capital required to make an initial investment in the CIBC Real Assets Private Pool has been reduced to $500 from $10,000, while the minimum initial investment for all other CIBC Private Pools has been reduced to $500 from $100,000.
Also, CIBC GAM said in a release that it’s terminating several mutual fund classes with “relatively small asset sizes.”
As of Thursday, the terminating mutual fund classes are closed to new purchases. These classes are set be terminated on or around Nov. 27. Investors will be able to exit out of an affected mutual fund class up until market close on the termination date, without having to pay any redemption fees or charges associated with the termination.
A full breakdown of the changes is available here.
Global X tweaks fund risk ratings
After an annual review of its product lineup, Global X Investments Canada Inc. has made several fund risk rating tweaks.
The changes are detailed below:
- Global X Artificial Intelligence Infrastructure Index ETF (TSX: MTRX) and Global X Innovative Bluechip Top 10 Index ETF (TSX: TTTX) have had their risk ratings downgraded to medium to high from high
- Global X Balanced Asset Allocation ETF (TSX: HBAL) and Global X Growth Asset Allocation ETF (TSX: HGRW) have had their risk ratings upgraded to medium from low to medium
- Global X Enhanced All-Equity Asset Allocation ETF (TSX: HEQL), Global X Equal Weight Canadian Banks Index ETF (TSX: HBNK), Global X Equal Weight Canadian Insurance Index ETF (TSX: SAFE) and Global X Russell 2000 Covered Call ETF (TSX: RSCC) have had their risk ratings upgraded to medium to high from medium
- Global X MSCI EAFE Covered Call ETF (TSX: EACC) has had its risk rating downgraded to low to medium from medium
No further changes have been made to the funds.