Franklin Templeton Canada has added a small amount of private market exposure to some of its mutual fund portfolios, which it says will “help deliver broader diversification, reduce portfolio volatility and improve long-term outcomes for Canadian investors.”
Announced Aug. 6, the change will apply to all five of the so-called Franklin Quotential Portfolios.
Those mutual funds will initially provide exposure to a private real estate and private credit strategy — the Franklin Clarion Real Estate Income Fund and Franklin BSP Lending Fund — alongside their existing allocations to stocks and bonds.
The alternative strategies are managed by Franklin Templeton’s investment managers, Clarion Partners and Benefit Street Partners. They’re also available individually to accredited investors.
In a release, the firm said it received exemptive relief from the Ontario Securities Commission to invest up to 10% of the assets of any public investment fund, including the Franklin Quotential Portfolios, in alts vehicles managed by itself or its affiliates.
Launched in 2002, the Franklin Quotential Portfolios include the Franklin Quotential Balanced Growth Portfolio, Franklin Quotential Balanced Income Portfolio, Franklin Quotential Diversified Equity Portfolio, Franklin Quotential Diversified Income Portfolio and Franklin Quotential Growth Portfolio.
The funds’ investment strategies will be updated to reflect the addition of alternative investments. They’re also being amended to expand each fund portfolio’s use of derivatives “to equitize cash and efficiently make tactical shifts across major asset categories,” the release noted.
RBC iShares rolls out two new ETFs
The RBC iShares alliance has rolled out two new global equity funds that seek to deliver long-term capital growth.
The iShares Core MSCI All-International Equity Index ETF (TSX: XINT) provides investors with exposure to global equities outside of Canada and the U.S. To the extent possible, it aims to replicate the performance of the MSCI ACWI ex North America IMI Index, which captures upwards of 5,000 international companies across market caps in more than 40 developed and emerging market countries.
Meanwhile, the iShares Equity + Bitcoin ETF Portfolio (TSX: IBQT) provides investors with exposure to Canadian, U.S., international and emerging markets equities, in addition to “a modest allocation” to bitcoin, a release said. It currently holds the iShares Bitcoin ETF (Cboe: IBIT) to deliver this bitcoin exposure.
XINT has a 0.23% management fee and IBQT has a 0.22% management fee.
The funds are managed by BlackRock Asset Management Canada Ltd. (BlackRock Canada), an indirect wholly-owned subsidiary of BlackRock, Inc.
Fiera appoints new lead portfolio manager after firing another
Fiera Capital Corp. has appointed a new lead portfolio manager for its major Canadian equity strategies after firing lead portfolio manager Nessim Mansoor.
In a release on Aug. 4, the firm said Nicholas Smart has been appointed lead portfolio manager, Canadian large-cap equities. He previously served as co-lead of the firm’s Canadian large-cap strategies.
In his new role, Smart will assume the lead portfolio management responsibility for the Fiera’s Canadian equity, Canadian equity core, Canadian equity ethical, Canadian equity fossil fuel free and Canadian equity dividend strategies. The suite has more than $17.2 billion in assets under management as of June 30, the release noted.
Smart brings more than 15 years of investment industry experience and joined Fiera in 2016.
In the release, Fiera said the appointment comes after it terminated Mansoor for cause in connection “with alleged breaches of his duty of loyalty and Fiera Capital’s Code of Conduct.” Mansoor led the asset manager’s Canadian large-cap equity team since September 2019.
To support Smart in his new role, the firm said it’s also added new members to its investment team “to deepen investment expertise and strengthen research capabilities.” It did not name the new hires. It said they joined Fiera from an unnamed Canadian institutional asset manager.
RBC GAM reopens bond fund to new investors
RBC Global Asset Management Inc. (RBC GAM) has reopened a long-standing bond fund to new investors.
The Phillips, Hager & North High Yield Bond Fund (PH&N High Yield Bond Fund) was capped to new investors on June 28, 2024. But as of Aug. 6, RBC GAM said the fund is once again open to new investors.
The fund “currently has a limited amount of additional capacity, allowing for purchases by new investors as the portfolio manager has identified attractive investment opportunities in fixed income markets,” the asset manager said in a release, while noting that it may restrict investment “at a later date.”
Launched in 2007, the PH&N High Yield Bond Fund invests primarily in fixed-income securities issued by Canadian, U.S. and/or foreign corporations and governments. It’s managed by Hanif Mamdani, managing director and head of alternative investments with RBC GAM.
NBI announces multiple changes to fund
National Bank Investments Inc. (NBI) has announced multiple changes to the NBI Floating Rate Income Fund.
Firstly, it plans to change the name of the fund to NBI Ultra Short-Term Fixed Income Fund on or around Aug. 31.
NBI has also announced upcoming fee cuts for various series of the fund, which will also take effect on or around Aug. 31.
The NBI Floating Rate Income Fund’s investor, investor-2, advisor, advisor-2 and T series will have their management fees reduced to 0.75 % from 1.05%. Meanwhile, the fund’s F and FT series will see their management fees drop to 0.25% from 0.55%.
The administration fees for all these series will be cut to 0.05% from 0.1%.
Lastly, on or around Sept. 8, NBI said it will discontinue the reduction plan applicable for high-net-worth investors in the NBI Floating Rate Income Fund.
Mackenzie looks to merge several funds
Mackenzie Investments says it’s seeking to merge several funds as part of its ongoing efforts to streamline its product shelf.
There are four proposed mergers requiring investor approval, including:
- Mackenzie Ivy European Fund, which is proposed to be merged into Mackenzie GQE International Equity Fund
- Mackenzie Bluewater North American Equity Fund, which is proposed to be merged into Mackenzie Bluewater US Growth Fund
- Mackenzie Bluewater North American Balanced Fund, which is proposed to be merged into Mackenzie Global Strategic Income Fund
- Mackenzie Tax-Managed Global Equity Fund, which is proposed to be merged into Mackenzie Global Dividend Fund
A special meeting will be held on or around Nov. 4 for investors of the funds (of record as of Sept. 16) to vote on the mergers. If approved, the mergers are set to take place on or around Nov. 13.
The two fund mergers that don’t require investor approval, which are also expected to occur on or around Nov. 13, include:
- Mackenzie Ivy International Fund, which will be merged into the Mackenzie GQE International Equity Fund
- Mackenzie Ivy International Fund II, which will be merged into the Mackenzie GQE International Equity Fund
Investors will receive notice and details of the mergers at least 60 days in advance.
The proposed mergers will be completed on a tax-deferred basis, Mackenzie noted in a release.