J.P. Morgan Asset Management Canada (JPMAM) has launched two new ETFs, this time with a focus on fixed income.
The JPMorgan Ultra-Short Income ETF (TSX: JPST) and JPMorgan Active Bond ETF (TSX: JBND) launched on Wednesday, the one-year anniversary of the asset manager’s entry into the Canadian ETF industry.
JPST, designed to be a conservative option for generating income, provides investors with exposure to short-term corporate and structured debt. It invests all or nearly all of its assets in the U.S.-listed JPMorgan Ultra-Short Income ETF (NYSE: JPST), the largest actively managed fixed-income ETF in the world according to the firm, with US$34.1 billion in assets.
JBND is designed to deliver total return from an actively managed portfolio of intermediate-term U.S. investment-grade bonds. It invests all or nearly all of its assets in the actively managed U.S.-listed JPMorgan Active Bond ETF (NYSE: JBND), which has US$3.4 billion in assets.
JPST has a management fee of 0.18%, while JBND has a management fee of 0.25%.
The funds mark the firm’s first foray into offering fixed-income investment products in Canada, said Travis Hughes, head of Canada at JPMAM.
He said JPST is suited for investors who either have more cash in a money-market fund or GIC than they would like and are seeking extra yield, or those who have longer-term fixed-income exposure in their portfolios and want to lower their duration. JBND, on the other hand, is designed to be a core foundation for a fixed-income portfolio.
Hughes said JPMAM has made “significant” investments in its asset management business in Canada, adding resources to its institutional business, which has been operating here since the 1980s, its sub-advisor business, which has been operating here for 13 years, and its retail business, which is now a year old.
Looking ahead, the asset manager plans to continue to expand its business in Canada by focusing “on the biggest asset classes, and predominantly the ones that provide the core building blocks of a diversified portfolio,” Hughes said.
CI GAM rolls out first target-date funds
CI Global Asset Management (CI GAM) rolled out its first-ever target-date maturity bond funds on Wednesday.
The new funds, offered in mutual fund series A, F, I and P units, in addition to Canadian-dollar-hedged ETF series units (TSX: CTMA, CTMB and CTMC), include:
- CI Target 2028 Investment Grade Bond Fund
- CI Target 2029 Investment Grade Bond Fund
- CI Target 2030 Investment Grade Bond Fund
They each invest primarily in Canadian dollar-denominated investment-grade corporate bonds that mature in their given target year. The funds provide regular income through monthly distributions and are then terminated on their target date, with proceeds distributed to their unitholders.
The funds are offered with a management fee of 0.15% for series F and ETF series units, and 0.65% for series A units.
“These funds are an advantageous, low-cost option for clients seeking consistent income, capital preservation, and to match their investments with their savings timeline,” said Jennifer Sinopoli, executive vice-president and head of distribution for CI GAM, in a release.
“Investors also benefit from the capabilities and experience of the CI GAM fixed-income investment team, with its deep expertise across corporate and government bond markets.”
Dynamic announces new liquid alt fund
Dynamic Funds has brought a new liquid alternative mutual fund to market.
Announced Wednesday, the Dynamic Multi-Alternative PLUS Fund seeks to deliver income and long-term capital appreciation by investing in assets including debt, options, structured finance, equity and private assets.
Its portfolio allocations will change based on market conditions to achieve a more consistent total return, strong returns per unit of volatility and lower correlation to broader traditional markets, Dynamic states on its website.
Dynamic Funds’ Richard J. Lee, vice-president and portfolio manager, and Nick Stogdill, vice-president and portfolio manager, will co-manage the fund. The pair has more than 35 years of combined industry experience in alternative strategies.
Mackenzie makes fund changes
Mackenzie Investments is making several changes to its investment funds, the firm announced on Monday.
Fee changes have been applied to the Mackenzie Gold Bullion Fund and certain series of the Mackenzie Ivy Canadian Balanced Fund.
Multiple series of the Mackenzie Ivy Canadian Balanced Fund are expected to be closed to new investments as of this week, while Mackenzie has launched new series of the fund.
Also, the Mackenzie Ivy European Fund’s risk rating has changed from “medium” to “low to medium.”
A full breakdown of the changes is available here.
CI GAM appoints sub-advisor for U.S. equity funds
CI GAM has appointed a new sub-advisor to manage six of its U.S. equity funds.
Kentucky-based River Road Asset Management, LLC has been appointed sub-advisor for the following products:
- U.S. Equity Value Corporate Class
- U.S. Equity Value Pool
- U.S. Equity Value Currency Hedged Corporate Class
- U.S. Equity Value Currency Hedged Pool
- A portion of CI Select U.S. Equity Managed Corporate Class
- A portion of CI Select U.S. Equity Managed Fund
As of Sept. 26, River Road is replacing TD Global Investment Solutions’ Epoch Investment Partners, Inc. on the six portfolios, which have a combined total of $1.1 billion in AUM.
River Road’s Daniel Johnson and Matt Moran will be the lead portfolio managers on the CI GAM portfolios. They’ve worked together at the U.S. firm for more than 14 years.
In a statement, a spokesperson for CI GAM said “the fee that CI GAM is paying the sub-advisor will be slightly lower following the change.”
Founded in 2005, River Road is an institutional investment management firm that manages more than US$10 billion in assets on behalf of institutional investors worldwide. This includes corporations, endowments, government entities, foundations, family offices and retirement plan sponsors.
Canada Life funds undergo sub-advisor changes
Canada Life Investment Management Ltd. (CLIML) has made sub-advisor changes to certain mutual funds, the firm announced on Wednesday.
The changes follow Irish Life Investment Managers Ltd. (ILIM) acquiring part of the business and assets of Canada Life Asset Management Ltd. (CLAM) and completing a merger with Setanta Asset Management Ltd. (Setanta).
As part of this reorganization, ILIM has assumed sub-advisory responsibilities for the Canada Life Global All Cap Equity Fund and Canada Life International Value Fund, which were formerly sub-advised by Setanta.
It is now also a sub-advisor for the portion of the Canada Life Global Equity and Income Fund that was previously sub-advised by CLAM. That fund continues to also be sub-advised by Mackenzie Financial Corp. and Brandywine Global Investment Management, LLC.
There are no other changes to the funds.