Investment Executive regularly lists notable developments in Canada’s investment product landscape. Here are some new releases as well as mergers of existing funds:
- CIBC Asset Management Inc. released a liquid alternative fund for investors seeking credit-like returns without increasing credit risk or extending duration. The CIBC Alternative Credit Strategy, available as of Nov. 21, buys and takes short positions in North American fixed-income securities and aims to minimize volatility and interest rate risk. The fun can short-sell government securities (worth up to 300% of the net asset value), use derivatives and leverage. Management fees are 1.2% for series A and 0.7% for series F. The risk rating is low to medium.
- National Bank Investments Inc. launched two funds for clients seeking long-term growth (at least five years) and looking to diversify their portfolios.
- The NBI Active International Equity Fund comprises other funds with stocks of international large-cap firms, excluding the U.S., traded on recognized stock exchanges. Management fees are 1.6% for the advisor series (initial sales charge option) and 0.6% for series F. The risk rating is medium.
- The NBI Active Global Equity Fund comprises mainly other funds of stocks of issuers located around the world, including the U.S. Management fees are 1.65% for the advisor series (ISC option) and 0.65% for series F. The risk rating is medium.
- CI Global Asset Management has expanded its fixed-income lineup. The CI Global Investment Grade Fund, a mutual fund trust version of the CI Global Investment Grade Class, launched on Nov. 22 and invests primarily in investment-grade government and corporate fixed-income securities. Management fees are 1.0% for series A and 0.5% for series F. The risk rating is low. CI GAM also launched a U.S.-dollar hedged series of CI Global Investment Grade Class. The CI Global Investment Grade Class was renamed last year from the CI Investment Grade Private Pool Class, and the minimum investment was reduced to $500 from $25,000.
- Canada Life Investment Management Ltd. plans to terminate five funds by merging them into existing products next February, including three Canada Life Pathways funds (money market, and Canadian and U.S. equities). The three funds “are substantially similar to the ones they’re being incorporated into,” a Canada life spokesperson said in an email. “This will help simplify our shelf and ensure clients and advisors have a curated selection of strategies available to them to meet their needs.”
- Purpose Investments Inc. plans to merge the Purpose Money Market Fund into the Purpose High Interest Savings ETF, which will then be re-named the Purpose High Interest Savings Fund. The thinking behind the merger, set to take place Jan. 27, is to “more effectively and efficiently manage the fund portfolios as well as to reduce costs,” Purpose said.
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