Investment Executive regularly lists notable developments in Canada’s investment product landscape. Here are some new releases:
- Franklin Templeton Canada released a new active bond fund for investors looking for yield amid rising rates. The Franklin Bissett Ultra Short Bond Active ETF (TSX: FHIS) started trading on Sept. 12. The fund, which targets a yield comparable to GICs, is for clients who don’t want to be locked into GICs when interest rates are expected to rise, a release said. (By comparison, EQ Bank offers 4.65% interest on a two-year GIC.) The ETF invests mainly in high-quality debt from Canadian issuers and aims for a weighted average duration of up to two years. The management fee is 0.15% and the risk rating is low.
- Purpose Investments Inc. launched a new cash ETF and accompanying mutual funds for investors looking to maximize yield amid rising rates without being locked into GICs. The Purpose Cash Management Fund (TSX: MNY) began trading on Sept. 14. Purpose anticipates a net yield of roughly 3.3% as of Sept. 14. “Given that the markets have been so volatile, the fund will provide investors with a safe and attractive yield option for their cash balances,” Purpose chief operating officer Vlad Tasevski said in a release. The fund will primarily hold Canadian-dollar cash and short-term, high-quality money market instruments: roughly 60% in bankers acceptance notes and 40% in commercial paper at launch, the majority maturing within 30 days. The management fee is 0.20% for both the ETF and Series F, and 1.45% for Series A. The risk rating is low.
- Mackenzie Investments also launched a new fund that addresses the inflationary environment. The Mackenzie Inflation-Focused Fund, released Sept. 9, aims to provide exposure to assets less sensitive to inflation. The fund is actively managed but also uses a proprietary inflation model that signals tactical shifts to its asset allocation. It targets 40-60% equity, 40-60% fixed income and up to 10% commodities, and tilts back to a more standard 60-40 balanced portfolio when inflation is “benign,” Mackenzie said. It could also invest in real estate. Management fees range from 0.7% for Series F to 1.85% for Series A. The risk rating is low to medium.
- The firm also released a U.S.-dollar version of the Mackenzie US Mid Cap Opportunities Fund. Management fees on the new fund range from 0.8% for Series F to 2% for Series A. The risk rating is medium.
- Emerge Canada Inc. has launched five sustainable active ETFs and accompanying mutual funds that are managed by women. “Female representation in the investment management industry is a fraction of what it can and should be,” Emerge Capital Management president and CEO Lisa Langley said in a release. “We are launching EMPWR to support and advocate for female managers and to inspire new women portfolio managers to join the industry.” The EMPWR ETFs launched last week with management fees of 0.8% for both the ETF and Series F, and 1.8% for Series A.
- The Emerge EMPWR Unified Sustainable Equity ETF (NEO: EPWR) has a medium risk rating
- The Emerge EMPWR Sustainable Select Growth Equity ETF (NEO: EPGC) has a medium risk rating
- The Emerge EMPWR Sustainable Dividend Equity ETF (NEO: EPCA) has a medium risk rating
- The Emerge EMPWR Sustainable Global Core Equity ETF (NEO: EPZA) has a medium risk rating
- The Emerge EMPWR Sustainable Emerging Markets Equity ETF (NEO: EPCH) has medium to high risk rating.
- Horizons ETFs Management (Canada) Inc. launched two new alternative ETFs for investors looking to go big on the fortunes of Canada’s Big Six banks. The BetaPro Equal Weight Canadian Bank 2x Daily Bull ETF (TSX: HBKU) and BetaPro Equal Weight Canadian Bank -2x Daily Bear ETF (TSX: HBKD), which started trading Sept. 13, use the Solactive Equal Weight Canada Banks Index to provide leveraged and inverse leveraged exposure, respectively, to Canada’s Big Six banks. The bull version seeks to double the index’s results while the bear version aims for two times the opposite of the index’s results. For both, the risk rating is high and management fee is 1.15%.
- Lysander Funds Ltd. launched two short-term fixed-income ETFs on Sept. 1. The Lysander-Canso Corporate Treasury ActivETF (TSX: LYCT), invests primarily in liquid short-term fixed income and floating rate debt while the Lysander-Canso Floating Rate ActivETF (TSX: LYFR) invests primarily in liquid short-term fixed income and floating rate debt. Both have a low risk rating. Management fees are 0.25% for the Corporate Treasury ActivETF and 0.35% for the Floating Rate ActivETF. Canso Investment Counsel Ltd. is the portfolio manager while Lysander Funds is the trustee and manager.
- Desjardins Insurance is letting clients pay for participating life policies in full in five years with Prosperity, a par whole life product launched on Aug. 26. By comparison, Sun Life Financial Inc.’s existing Sun Par Accelerator lets clients pay in full in eight years.
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