Toronto-based Evolve Funds Group Inc. has filed a final prospectus to launch an actively managed global fixed-income ETF, the company announced Wednesday.
Evolve Active Global Fixed Income ETF (EARN) has closed its initial offering of units and began trading on the Toronto Stock Exchange on Wednesday.
EARN “seeks to generate positive returns throughout interest rate and economic cycles, firstly by allocating to different credit asset classes, and also through bottom-up individual security selection,” Evolve says in a news release. The ETF seeks to provide long-term returns in excess of the 3-month U.S. dollar London Interbank Offered Rate, by investing primarily in global debt securities of corporate issuers. Allianz Global Investors is acting as subadvisor.
“Advisor and investor demand for actively managed fixed-income ETFs continues to increase,” Raj Lala, president and CEO, Evolve ETFs, says in a statement. “Over the past five years, the majority of active bond managers have outperformed passive mutual funds and ETFs. Active management in fixed income allows managers to position their portfolios appropriately to take advantage of market trends. We are very pleased to provide Canadian investors with access to the fixed income expertise of Allianz Global Investors, one of the world’s leading active investment managers.”
Evolve also announced the launch of an unhedged U.S. dollar class of units of its Evolve Active US Core Equity ETF, which has begun trading on the Toronto Stock Exchange under the ticker symbol CAPS.U.
CAPS seeks to provide long-term capital appreciation by investing primarily in equity securities of U.S.-listed large-cap companies “using a selection process that combines quantitative techniques, fundamental analysis and risk management,” Evolve says. Nuveen Asset Management LLC is subadvisor for CAPS.