Investment Executive regularly lists notable developments in Canada’s investment product landscape. Here are some newly released funds.
- Brompton Funds Ltd. launched an active alternative ETF, designed for various market conditions for clients who want a mix of regions, sectors and asset classes in one product. The Brompton Enhanced Multi-Asset Income ETF (TSX: BMAX), which invests in existing Brompton ETFs, started trading on Oct. 20 with an initial allocation of about 70/20/10 equity covered-call ETFs, fixed-income ETFs and preferred shares of split-share corporations. There’s no management fee but the underlying Brompton ETFs have their own fees. The risk rating is medium.
- RBC Global Asset Management Inc. introduced two passive fixed-income ETFs for clients seeking exposure to investment-grade corporate bonds with a customized duration risk. The RBC Target 2028 Corporate Bond Index ETF (TSX: RQQ) and the RBC Target 2029 Corporate Bond Index ETF (TSX: RQR), which began trading on Oct. 20, track the FTSE Canada 2028 Maturity Corporate Bond Index and 2029 Maturity Corporate Bond Index respectively. “We have seen an increase in demand for solutions that allow investors and advisors to customize their portfolio’s duration risk,” RBC ETFs head Mark Neill said in a release. Both ETFs have a 0.25% management fee and low risk rating. Evermore Capital Inc. announced eight target-date ETFs, for investors retiring at five-year intervals from 2025 through 2060, in February.
- Canada Life Assurance Company released three passive segregated funds for clients wanting a balance of income and capital appreciation. The Canada Life Index ETF Conservative Portfolio, the Canada Life Index ETF Balanced Portfolio and the Canada Life Index ETF Growth Portfolio — with 60/40, 70/30 and 80/20 equity-fixed income ratios respectively — are available as of Oct. 24. The fees depend on the version (standard, partner or preferred partner) and option (deferred sales charge, chargeback or front-end load). Management expense ratios for the Conservative Portfolio range from 0.88% for the preferred partner FEL option with a 75/75 guarantee, for example, to 2.45% for the standard options with 100% guarantees. Risk ratings are low for the Conservative Portfolio and low to moderate for the other two.
- New York City-based MSCI Inc. is launching five indexes — the MSCI ACWI Climate Action Index, the MSCI World Climate Action Index, the MSCI Emerging Markets Climate Action Index, the MSCI USA Climate Action Index and the MSCI Europe Climate Action Index — for clients seeking exposure to issuers who are making progress on greenhouse gas emission targets. “At a time when the climate crisis must be tackled head-on, the decarbonization of investment portfolios is a critical first step,” MSCI ESG and climate indexes head Melissa McDonald said in a release. In 2020, MSCI launched eight indexes to help investors align their portfolios with the climate change goals established under the Paris Agreement.
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