Advisor’s Edge regularly lists significant changes in the Canadian investment product landscape. Here are some of the newly released funds.
- Brompton Funds Ltd. launched an active alternative ETF designed for a variety of 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, began trading on October 20 with an initial allocation of approximately 70/20/10 callable equity ETFs, fixed income ETFs and preferred equity ETFs in divided companies. There is no management fee, but Brompton’s underlying ETFs have their own fees. The risk rating is average.
- RBC Global Asset Management Inc. launched two passive fixed-income ETFs for clients seeking exposure to investment-grade corporate bonds with tailored duration risk. The RBC Target 2028 Corporate Bond Index ETF (TSX: RQQ) and RBC Target 2029 Corporate Bond Index ETF (TSX: RQR), which began trading on October 20, track the FTSE Canada 2028 Corporate Bond Maturity Index and the 2029 Maturity Corporate Bond Index Index respectively. “We have observed an increase in demand for solutions that allow investors and advisors to adjust portfolio duration risk,” said Mark Neill, head of RBC ETFs, in a statement. Both ETFs have a 0.25% management fee and a low risk rating. Evermore Capital Inc. announced eight target-date ETFsfor investors retiring every five years from 2025 to 2060, in February.
- Canadian life insurance company has made available three passive, segregated funds for clients seeking a balance of income and capital growth. 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 fixed income ratios respectively – are available from October 24. Fees vary by version ( standard, partner or preferred) and options (deferred sales fee, chargeback or front-end charge). Management cost ratios for the Conservative Portfolio range from 0.88% for, for example, the preferred partner’s FEL option with a 75/75 guarantee to 2.45% for standard options with a 100% guarantee. Risk ratings are low for the conservative portfolio and low or moderate for the other two.
- Based in New York MSCI Inc. launches five indices – 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 that are making progress on their goals in scope of greenhouse gas emissions. “At a time when the climate crisis must be confronted, decarbonizing investment portfolios is a critical first step,” Melissa McDonald, MSCI director of ESG and climate indices, said in a statement. In 2020 MSCI has launched eight indices to help investors align their portfolios with the climate change targets set under the Paris Agreement.
If you would like us to consider your launch, please email Greg Meckbach at greg@newcom.ca.
