Brandes Investment Partners and Co. (a.k.a Bridgehouse Asset Managers) and Morningstar Associates Inc., both based in Toronto, have launched the first mutual fund under their recently announced partnership.
“Morningstar Strategic Canadian Equity Fund is a strategic beta fund that combines elements of passive and active investing using a disciplined rules-based process,” states an announcement that the firms released on Wednesday. “[It] aims for improved long-term returns with a lower risk profile compared with the S&P/TSX composite index.”
The fund is being launched in three series. Series F units will have a management fee of 0.5%; Series D units will come with a management fee of 0.65%; and investors possessing units in Series A can expect a fee of 1.5%.
“We believe Morningstar Strategic Canadian Equity Fund will appeal to fee-conscious investors looking for a pure Canadian equity fund to use as a core building block in their portfolios,” says Carol Lynde, president and chief operating officer of Bridgehouse, in a statement. “This solution is designed for investors concerned about generating alpha, reducing volatility and lowering fees.”
The fund’s portfolio will consist of 30 to 40 companies, chosen in part with the help of Morningstar’s proprietary equity ratings.
The two firms announced their partnership in August, stating the goal would be to develop a core lineup of investment products with competitive fees.
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