Toronto-based Evolve Funds Group Inc. has filed a preliminary prospectus with Canadian securities regulators to introduce Evolve Active Core Fixed Income ETF.
The firm has retained Toronto-based Foyston, Gordon & Payne Inc. (FGP) to provide subadvisory services for the ETF.
Evolve Active Core Fixed Income ETF aims to invest mainly in international, high-quality, fixed-income securities and, to a lesser extent, adding yield or enhancing returns on the portfolio by investing opportunistically in international fixed-income securities, emerging-market debt, preferred shares, convertible bonds and non-investment grade bonds.
“This core fixed-income strategy complements our existing suite of ETFs,” says Raj Lala, president and CEO of Evolve, in a statement. “Accordingly, we are very pleased to partner with FGP on another actively managed ETF. Active management in fixed-income may have advantages for investors, including the ability to uncover some inefficiencies and dislocations, resulting in the potential to outperform a benchmark.”
The ETF will invest primarily in core fixed-income securities and may also include, at the discretion of FGP, non-core fixed-income securities.
FGP had approximately $13.4 billion in assets under management as of Dec. 31, 2017, including $2.4 billion in fixed-income.