Toronto-based Evolve Funds Group Inc. has filed a preliminary prospectus with the Canadian securities regulators for the Evolve Active Global Fixed Income ETF (EARN), the company announced Friday.
The actively managed ETF invests primarily in global debt securities of corporate issuers. Evolve ETFs has appointed Frankfurt-based Allianz Global Investors (AllianzGI) as subadvisor for EARN.
“Advisor and investor appetites for active management in fixed income continues to grow with an emphasis on security selection, credit analysis and risk management,” says Raj Lala, president and CEO of Evolve ETF, in statement.
“Last year 40% of all Canadian fixed income ETF inflows were into active ETFs. AllianzGI provides extensive global resources and investment expertise, as fixed income securities continue to be a core component of investor portfolios,” adds Lala.
The new ETF 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. EARN also seeks to provide long-term returns in excess of the three-month U.S. dollar London Interbank Offered Rate by investing primarily in global debt securities of corporate issuers.
“The opportunity to expand our presence in the Canadian market through this partnership with Evolve ETFs feels both well-timed and well-matched,” said David Newman, head of global high yield at AllianzGI, in a statement. “While Evolve has deep knowledge of the Canadian ETF market that we have been looking to break into, AllianzGI brings decades of experience across credit markets, and a team that has been a pioneer of global fixed income. Together, we can create a strong foothold in Canada with active management being the driving force that aligns us in subadvising our first active ETF and delivering value to financial advisors and Evolve’s clients.”