Toronto-based First Asset Investment Management Inc. announced that the initial offering of two classes of units for First Asset Enhanced Government Bond ETF has closed and the units will commence trading on the Toronto Stock Exchange (TSX) on Tuesday.
Toronto-based fixed-income manager Marret Asset Management Inc.’s president and chief investment officer, Barry Allan, along with Paul Sandhu, vice president and portfolio manager and Adam Tuer, portfolio manager, will co-manage the ETF’s investment portfolio.
The ETF’s investment objective is to provide long-term total returns through interest income and capital appreciation. The ETF will invest primarily in government debt, but may also invest in other debt instruments across the credit spectrum including cash, corporate debt, and debt and credit derivatives.
“First Asset Enhanced Government Bond ETF is designed to provide investors true, active management across the duration spectrum,” Allen says in a statement. “The key to providing our investors with a solution to capitalize on both the current and upcoming phases of the credit cycle rests on the flexibility of actively shortening the portfolio’s duration in periods of rising interest rates, while also having the option to rotate to longer duration government bonds, for additional recession protection.”
The common units of the ETF will trade under the ticker symbol FGO while the U.S. dollar common units will trade under the ticker symbol FGO.U.