Capital Group Canada has rolled out three new actively managed equity ETFs designed to help investors diversify their equity exposure beyond Canada.
The firm, which formally goes by Capital International Asset Management (Canada), Inc., launched the funds on Thursday.
The new products, which all have a medium risk rating, include:
- Capital Group U.S. Equity Select ETF (TSX: CAPU), which seeks long-term growth of capital and income by primarily investing in common stocks of U.S. issuers. It has a 0.36% management fee.
- Capital Group International Developed Equity Select ETF (TSX: CAPN), which seeks to provide “prudent growth of capital” by primarily investing in equity securities of issuers in developed markets outside North America. It has a 0.58% management fee.
- Capital Group Global Developed Equity Select ETF (TSX: CAPQ), which seeks to provide “prudent growth of capital” through investments primarily in equity securities of issuers in developed markets. It has a 0.5% management fee.
“Clients tell us they are looking beyond borders for opportunities to build diversified portfolios,” said Angela Shim, head of product and development with Capital Group Canada, in a release.
“The three equity strategies expand Capital Group Canada’s core offerings in U.S., international and global equities, giving investors flexible solutions that can help them navigate global markets and stay focused on their long-term investment goals.”
Capital Group Canada now offers seven ETFs in total.
Harvest lists international equity ETF
Harvest Portfolios Group Inc. has brought a new international equity ETF to market.
The Harvest International High Income Shares ETF (TSX: HHII) began trading on Thursday.
The fund aims to deliver high monthly cash distributions and capital appreciation by investing — directly or indirectly — in a multi-sector portfolio of publicly listed international equities. It will also employ modest leverage and an active covered call strategy to achieve lower overall volatility of returns and generate monthly premiums, a release said.
The fund has a 0.65% management fee and high risk rating.
AGF launches ETF series for U.S. equity fund
In response to client demand, AGF Investments Inc. has launched an ETF series to offer expanded investor access to one of its funds.
The AGF Enhanced U.S. Income Plus Fund’s new ETF series (TSX: AENP) began trading on Thursday.
The fund, which primarily invests in U.S. stocks, seeks to provide long-term capital appreciation and generate a high level of consistent income, a release said. It also employs options strategies and may use leverage.
AENP has a 0.85% management fee and low to medium risk rating.
Evolve debuts two Canadian equity ETFs
Evolve Funds Group Inc. has debuted two ETFs that invest in Canadian sectors.
The Evolve Canadian Financials Yield Fund (TSX: CFIN) and Evolve Canadian Utilities Yield Fund (TSX: CUTE) began trading on July 14.
CFIN has an equal-weighted portfolio of Canadians banks and insurance companies, while CUTE has an equal-weighted portfolio of primarily Canadian utilities services companies. Both funds also employ a covered call strategy to generate enhanced income.
At this time, CFIN seeks to replicate, to the extent possible before fees and expenses, the performance of the Solactive Canadian Core Financials Equal Weight Index, and CUTE similarly aims to replicate the performance of the Solactive Canada Utility Index.
The funds build on the success of two other funds — the Evolve Canadian Banks and Lifecos Enhanced Yield Index Fund (TSX: BANK) and Evolve Canadian Utilities Enhanced Yield Index Fund (TSX: UTES) — which have more than $1.7 billion in combined assets under management, said Raj Lala, president and CEO at Evolve, in a release.
The new funds give investors access to the same covered call strategies that BANK and UTES use, but without leverage, Lala noted.
CFIN and CUTE each have a 0.6% management fee and medium risk rating.
Desjardins makes changes to mutual fund lineup
Desjardins Investments Inc. has announced changes to its mutual fund lineup, which it says are meant to simplify the lineup, “optimize portfolio management and provide an investment solution that is better aligned with the evolving needs of members, clients and investors.”
The changes include:
- A merger of the Desjardins Dividend Growth Fund with the Desjardins Canadian Equity Income Fund after market close on or around Nov. 13.
- The Desjardins Target 2026 Investment Grade Bond Fund and Desjardins Sustainable Global Balanced Fund will be terminated after market close on or around Nov. 27.
- Certain Desjardins fund unit classes will be terminated after market close on or around Nov. 27.
- The investment strategies of the Desjardins Enhanced Bond Fund will be changed “to adjust the threshold applicable to investments in high-yield bonds,” which will be reduced to 5% from 30%.
A full breakdown of the changes is available here.
Leith Wheeler temporarily suspends buy orders
Leith Wheeler Investment Counsel Ltd. has temporarily stopped accepting buy orders for the F-series of its mutual funds as it works “to resolve an issue related to the distribution of Fund Facts and prospectus documents to clients.”
The suspension only applies to F-series funds, which are held primarily by third party-advisors for their clients and some direct-to-investor investing platforms. A list of the affected funds is available here.
Investors can still redeem these units as usual on a T+1 basis.
Leith Wheeler said it’ll provide an update as soon as the issue has been resolved. The firm didn’t respond to a request for comment.
CI GAM announces risk rating changes
CI Global Asset Management has announced risk rating changes for four investment funds.
Effective July 15, the CI Alternative Diversified Opportunities Fund, CI Alternative Investment Grade Credit Fund and CI Marret Alternative Enhanced Yield Fund have had their risk ratings downgraded to low from low to medium.
The CI Global Climate Leaders Fund has had its risk rating upped to medium to high from medium.
The changes apply to all mutual fund and ETF series of the funds.
BMO announces fund changes
BMO Investments Inc. is tweaking its mutual fund lineup.
Firstly, the fund manager has revised the investment strategies of the BMO Managed Balanced Portfolio, BMO Managed Equity Growth Portfolio and BMO Managed Growth Portfolio. Effective July 10, the strategies have changed to allow these funds to invest up to 5% of their assets in securities of underlying funds that have exposure — either directly or indirectly — to crypto assets.
Also, on or around Oct. 16, BMO Asset Management Inc. and Burgundy Asset Management Ltd. are set to replace Polen Capital UK LLP as co-portfolio managers of the BMO Emerging Markets Fund.
TDAM announces risk rating, fee and sales charge changes
TD Asset Management Inc. (TDAM) has announced a risk rating tweak, a fee reduction and sales charge changes to some of its funds.
In a release, TDAM said it’s downgrading the risk rating for the TD U.S. Long Term Treasury Bond Fund to medium from medium to high.
It’s also cutting the management fee for the TD Risk Management Pool to 0.45% from 0.6%.
Those changes are set to take effect on or around this Thursday.
Lastly, TDAM said it’s getting rid of the legacy sales charge structures that applied to many of its mutual funds, moving them instead to a “no-load pricing model.” This includes deferred sales charge (DSC), low-load (LSC) and initial sales charge (ISC) structures. The changes take effect on or around Sept. 11 and require zero investor action.
The ISC, DSC, LSC and LSC2 purchase options for certain mutual funds will cease to exist, and the advisor T5 and T8 series will transition to a no-load sales charge structure, therefore creating greater fee transparency for investors. More details and a list of affected funds are available here.
CIBC makes changes to CDRs
CIBC has announced some changes to its Canadian Depository Receipt (CDR) lineup.
For one, it said its Honeywell Canadian Depositary Receipts (CAD Hedged) will be renamed Honeywell Technologies Canadian Depositary Receipts (CAD Hedged). The CDR will also get a new CUSIP identifier: 43856Q107. The CDR’s ticker symbol (TSX: HON) remains unchanged.
Separately, it said the ticker symbol for the Chevron Canadian Depositary Receipts (CAD Hedged) and McDonald’s Canadian Depositary Receipts (CAD Hedged) will be updated. The Chevron CDR’s ticker symbol will change to CVX from CHEV, and the McDonald’s CDR’s ticker will change to MCD from MCDS. Their names and CUSIPs remain unchanged.
The changes are set to take effect on Aug. 4.
RBC GAM to terminate fund
RBC Global Asset Management Inc. has announced the upcoming closure of a fund “due to its limited growth potential.”
The RBC Private Global Growth Equity Pool is slated for closure on or around Oct. 8, and is closed to purchases effective immediately, the asset manager said in a release on Thursday.
Walter Scott & Partners Ltd. will continue to serve as sub-advisor for the fund until it closes.
Investors can redeem or switch their holdings in the fund until markets close on Oct. 7. Any remaining units will be redeemed, and the proceeds distributed to unitholders.
For units held in a non-registered account, the fund closure may result in a taxable capital gain or loss. Investors are encouraged to contact their advisor to discuss the closure and their options.
IG announces sub-advisor change
IG Wealth Management has announced a sub-advisor change.
Fidelity Investments Canada ULC will replace Aristotle Capital Boston, LLC as sub-advisor to the U.S. Small Cap Mandate of the iProfile U.S. Equity Private Pool on or around Aug. 21. The mandate will also be renamed the U.S. Small-Mid Cap Mandate.
“Fidelity was selected following IG’s rigorous manager evaluation process, reflecting its extensive expertise in U.S. small-mid cap equities, disciplined investment approach and strong long-term investment capabilities,” IG said in a release.