Vanguard Investments Canada Inc. has launched its first actively managed fixed income ETF, designed for Canadian investors seeking to diversify their fixed-income exposure beyond their own country’s borders.
The Vanguard Global Core-Plus Bond ETF (TSX: VCOR) began trading on Wednesday. It has a management fee of 0.25%.
The fund will invest primarily in bonds, either directly or indirectly through investment in one or more underlying funds. It currently invests in the U.S.-domiciled Vanguard Core-Plus Bond ETF (Nasdaq: VPLS).
The underlying fund invests in U.S. Treasury, mortgage-backed and corporate securities outside of Canada, and emerging markets debt of varying yields, maturities and credit qualities. It has a maximum 25% allocation to high-yield or non-investment-grade debt securities.
“We call it the portfolio centerpiece — that building block that can really diversify your portfolio outside of Canada,” said Sal D’Angelo, head of Vanguard Canada, in an interview.
“So, it’s really designed for those advisors who are looking for quality, but with select opportunities to add value. It wouldn’t be suited for an advisor just searching for higher-risk fixed income because that’s not the intention. It’s designed to be really more of that ballast in the portfolio, while adding some opportunities to add alpha.”
The fund is managed by Vanguard’s fixed-income group, which oversees US$1.2 trillion in active fixed-income assets and includes more than 150 investment professionals worldwide.
D’Angelo said active management allows the team to flexibly invest across global bond sectors, credit qualities and markets.
VCOR is Vanguard’s first active fixed-income ETF offered outside of the U.S. The fund seeks to hedge its U.S.-dollar currency exposure back to the Canadian dollar.
“We’re just really excited to bring some of these global capabilities we have in the U.S. to Canadians,” D’Angelo said.
Vanguard Canada now offers a total of 11 fixed-income ETFs.
Manulife expands its seg fund lineup
Manulife Canada has expanded its segregated fund lineup with eight new funds and increased access to 11 existing funds.
The new funds include:
- Manulife U.S. Opportunities Segregated Fund, Manulife Smart International Dividend ETF Segregated Fund and Manulife Smart Short-Term Bond ETF Segregated Fund, offering exposure to U.S. equities, international dividends and short-term bonds, respectively. These funds draw on three strategies from Manulife Investment Management’s mutual fund and ETF investment offerings.
- Manulife Fidelity Canadian Growth Company Segregated Fund, Manulife Fidelity Global Equity+ Segregated Fund and Manulife Fidelity Income Portfolio Segregated Fund, have Canadian equity, global equity and balanced mandates, respectively. These are the latest seg funds managed by Fidelity Investments Canada ULC in Manulife’s lineup.
- Manulife BlackRock Core Equity ETF Segregated Fund, an index-based fund that provides investors with diversified exposure across Canadian, U.S., international and emerging market equities.
- Manulife Invesco NASDAQ 100 ETF Segregated Fund, which invests in major U.S. large-cap companies.
And, in an effort to increase choice for advisors and their clients, Manulife has made 11 existing funds available through seg fund series:
- Manulife Corporate Bond Segregated Fund
- Manulife Corporate Fixed Income Private Segregated Pool
- Manulife Balanced Income Portfolio Segregated Fund
- Manulife Global Dividend Segregated Fund
- Manulife Smart Balanced Dividend ETF Bundle Segregated Fund
- Manulife Smart Corporate Bond ETF Segregated Fund
- Manulife Smart Dividend ETF Segregated Fund
- Manulife Smart U.S. Dividend ETF Segregated Fund
- Manulife CI Canadian Income & Growth Segregated Fund
- Manulife Fidelity Canadian Asset Allocation Segregated Fund
- Manulife Fidelity Canadian Balanced Segregated Fund
The new and expanded offerings are available through GIF Select – InvestmentPlus, Manulife Segregated Fund RESP and MPIP Segregated Pools.
Capstone debuts biblically-informed bond fund
Capstone Asset Management Inc. has launched a faith-based fixed-income fund.
Announced Wednesday, the Capstone Biblically Informed Bond Fund applies a “biblically-informed” approach to fixed-income investing, making it the first mutual fund of this kind in Canada, the Langley, B.C.-based firm said in a release.
The fund primarily invests in a diversified portfolio of fixed-income securities issued by corporations, trusts, and governments, mainly across Canada, with at least 75% of its holdings rated investment grade “under normal market conditions,” the firm notes on its website.
Capstone evaluates these corporations, trusts and governments’ business activities to ensure they’re in line with biblical values in its view. In other words, they must avoid activities such as gambling, weapons manufacturing, pornography, or abortion. It also seeks to invest in securities issued by entities that “promote human dignity and flourishing, environmental care, community impact and integrity in leadership,” per its website.
The new bond fund has a management fee of 0.6%. It comes to market nearly a year after Capstone launched two biblically-informed equity public funds.
Hamilton ETFs, Westcourt partner on new ETF
Hamilton Capital Partners Inc. and Westcourt Capital ULC have partnered to launch a new actively managed equity ETF.
The Westcourt Hamilton Yield Portfolio ETF began trading on Thursday. The fund is offered in both Canadian-dollar unhedged units (TSX: WHYP) and U.S.-dollar unhedged units (TSX: WHYP.U).
The fund invests in a diversified portfolio of ETFs that provide exposure to predominantly large-cap equity securities. It has a 0.9% management fee.
Westcourt will act as the fund’s sub-advisor.
Corton Capital rolls out an ETF series
Toronto-headquartered Corton Capital Inc. has launched a new ETF series of an existing fund.
The ETF series of the Corton Theta Alpha Fund (TSX: TPUT) began trading on Tuesday.
The actively managed fund invests primarily in North American-listed securities and related options using “fundamental, technical and quantitative investment strategies,” Corton Capital said in a release.
It has a 1.25% management fee and medium to high risk rating.
It’s the third ETF in Corton Capital’s lineup.
Smead Canada introduces two mutual funds
Smead Capital Management (Canada) Ltd. has introduced two mutual funds, marking its first product launches in the country since it became registered as an investment fund manager in Ontario, Quebec and Newfoundland and Labrador earlier this year.
In a release, the Toronto-based firm said it filed a prospectus for the Smead Global ex-US Value Fund and the Smead US Value Fund, and that it subsequently received a final receipt from securities regulators, allowing orders to be placed on Fundserv through registered dealers in advance of the funds’ launch.
The Smead Global ex-US Value Fund invests directly or indirectly in global securities, primarily in non-U.S. companies and large-cap companies across developed markets.
The Smead US Value Fund invests directly or indirectly in U.S. securities, primarily focusing on large-cap businesses.
Smead Canada is the Canadian subsidiary of Phoenix-based Smead Capital Management, which managed US$5.9 billion in assets as of Aug. 31.
IG announces fund merger, sub-advisor change
IG Wealth Management has announced an upcoming fund merger and a sub-advisor change.
In a release, IG said that on or around Nov. 13, the IG Income Portfolio – Growth will be merged into IG Income Portfolio – Growth Plus to streamline its product shelf. Investors will receive advance notice with details about the merger.
And, on or around Nov. 2, 1832 Asset Management L.P. will no longer act as sub-advisor to the International Large Cap Core Mandate of the iProfile International Equity Private Pool.
“Assets will be reallocated among the remaining managers of the mandate,” IG said in a release. “This change maintains diversification while simplifying the overall pool structure and further strengthening the pool’s manager lineup.”
No actions are required by investors in either scenario.
CI GAM makes risk rating, index tweaks to fund
After a review of its investment offerings, CI Global Asset Management (CI GAM) has updated a fund’s risk rating and changed its reference index.
In a release on Tuesday, it said the risk rating of CI Floating Rate Income Fund has been changed to low from low to medium. The change applies to all mutual fund series and the Canadian-dollar ETF series (TSX: CFRT) of the fund.
CI GAM said the fund’s reference index has also been changed “to better align with its overall risk profile and asset mix.” It’ll now reference a combination of the Morningstar LSTA U.S. Leveraged Loan 100 Index (CAD-Hedged), ICE BofA 0-3 Year U.S. High Yield Index (CAD-Hedged), and FTSE Canada Short Term Corporate Bond Index.