The funds leverage the experience of Mackenzie’s global quantitative equity (GQE) team, “which aims to generate alpha and manage risk by using a holistic quantitative approach that combines human insight and data science,” the firm said in a release.
In an interview, Arup Datta, senior vice-president and head of the Mackenzie GQE team in Boston, said the new funds are meant to build on Mackenzie’s success with institutional investors, which span from Canada to Asia and elsewhere in the world.
“I’m just very happy to bring more offerings to Canadian retail [space],” he said. “Institutionally, we run about 20 strategies, and now there will be 14 or 15 available to the Canadian retail investor.”
The Mackenzie GQE Canadian Balanced Fund and Mackenzie GQE Global Balanced Fund combine equity and fixed-income components to provide investors with a diversified portfolio and a target strategic asset mix that will be adjusted based on emerging risks and opportunities. Both funds have a 0.7% management fee.
Meanwhile, the Mackenzie GQE Canadian Equity Fund provides investors with exposure to both Canadian and U.S. companies. It has a 0.75% management fee.
Lastly, the Mackenzie GQE US Alpha Extension Fund seeks to enhance core U.S. equity exposure with both long and short equity positions “to create greater alpha potential,” the release said. It has a 1.15% management fee.
The use of short selling was born out of Mackenzie’s desire to offer a unique U.S. equity fund to retail investors in Canada, Datta said.
“We just thought that could be a differentiator in the U.S. large cap category in Canadian retail, and hopefully [it can] deliver even more consistent alpha, a little bit more alpha and so on,” he said.
BMO to terminate ARK innovation funds
BMO Investments Inc. (BMOII) has announced the upcoming termination of three funds it launched in partnership with Cathie Wood’s ARK Investment Management LLC (ARK).
The BMO ARK Genomic Revolution Fund (Cboe: ARKG), BMO ARK Innovation Fund (Cboe: ARKK) and BMO ARK Next Generation Internet Fund (Cboe: ARKW) are slated to be terminated on or around July 11.
The funds launched in late 2022 with the aim of capitalizing on “technology-enabled innovation across economic sectors with the potential for long-term growth,” a release said at the time. But the funds struggled to attract significant inflows, and the tech sector has been through a few market slumps since ARK launched the Canadian versions of its innovation funds in the U.S.
As of April 16, no direct subscriptions for units of the terminating funds will be accepted by BMOII, a release said. And once the funds are terminated, all units of the funds held by investors will be subject to a mandatory redemption.
As well, BMOII said it will request the voluntary delisting of ETF series units of the funds from Cboe Canada on or about July 7. Until then, units of ARKG, ARKK and ARKW will continue to be listed and traded on the exchange.
More information is available here.
A new financial health score calculator
Kitchener, Ont.-based Kindred Credit Union and Guelph, Ont.-based market research firm PMG Intelligence have launched a financial health score calculator, the firms announced in a release on April 15.
The calculator is a “a simple, secure, and free tool that gives you personalized insights into your financial health and offers practical next steps,” the release said.
Users will have to answer a series of questions and based on their responses, they will receive their overall financial health score, along with recommendations of ways to improve their score.
Interactive launches FHSA
Interactive Brokers, an automated global electronic broker, has launched a First Home Savings Account (FHSA) for eligible Canadian residents, the firm announced on Tuesday.
In a release, the firm said the new FHSA gives clients access to a broad range of tradable instruments through Interactive Brokers Canada.
Contributions to and income growth from the account are tax-deductible, clients can invest in U.S. bonds, along with U.S. and Canadian stocks and options using the broker’s trading platforms, and clients can transfer their funds tax-free to a Registered Retirement Savings Plan if they haven’t been used for a home purchase within 15 years.
Desjardins simplifies its mutual fund lineup
Desjardins Group has announced a slew of changes to its investment fund lineup, which it says “will mean a simpler, more accessible experience and competitive pricing for clients.”
In a release Wednesday, the firm said it’s now offering new A-class units for six Desjardins ETF portfolios and launched a new fund called the Desjardins Tactical Asset Allocation Fund. It’s also merging certain portfolios on or around Sept. 12, lowering management fees for certain classes of Desjardins fund units and changed the names of two portfolios, among other changes.
A full breakdown of the changes is available here.
RBC GAM announces fund changes
RBC Global Asset Management Inc. (RBC GAM Inc.) has announced several fund changes, including fee reductions and a sub-advisor appointment.
Management fees for the RBC India Equity Fund and RBC International Equity Index Fund have been reduced in certain cases and their operating expenses have changed from a floating operating expense to a fixed administration fee as of April 17.
The custodian, auditor and valuation and/or administrative services providers of those two funds have also changed.
Meanwhile, BlackRock Asset Management Canada Ltd. has been appointed as the sub-advisor for the RBC International Equity Index Fund.
“This appointment continues the long-standing relationship between RBC GAM Inc. and BlackRock Asset Management Canada Limited,” a release said.
A full breakdown of the changes is available here.
CI GAM announces risk rating change
CI Global Asset Management (CI GAM) has changed the risk rating for the unhedged common units of the CI U.S. Minimum Downside Volatility Index ETF (TSX: CUDV.B).
The firm announced in a release that the risk rating for the fund has been upped from “low-to-medium” to “medium” as of Monday.
“The risk rating change is based on the risk classification methodology mandated by the Canadian Securities Administrators to determine the risk level of mutual funds, including ETFs,” the release said. “CI GAM reviews the risk rating for each of the funds it manages at least on an annual basis, as well as when a fund undergoes a material change.”
The firm noted that the risk change is the result of “ongoing internal reviews” and not due to any changes to the investment objectives, strategies or management of the ETF.
The hedged common units of the CI U.S. Minimum Downside Volatility Index ETF (TSX: CUDV) will continue to have a risk rating of “medium.”
BMO announces changes to its ETN lineup
Bank of Montreal (BMO) has issued a reminder of changes to its leveraged exchange-traded notes (ETNs) linked to the NYSE FANG+ Index, which includes major tech companies like Meta Platforms, Inc., Apple Inc., Amazon.com, Inc., Netflix Inc., and Nvidia Corp.
In a release, BMO said it “intends to exercise its call right” and redeem the outstanding securities of its MicroSectorsTM FANG+TM Index 3× Leveraged ETNs (FNGA ETNs), due Jan. 8, 2038. The redemption is scheduled for May 15.
The bank noted that it launched the FNGA ETNs in January 2018, but the costs associated with supporting the leverage in the ETNs have increased and “no longer reflect the current market environment.”
However, BMO said it’s launched a new set of ETNs to replace the old ones.
The MicroSectorsTM FANG+TM 3× Leveraged ETNs (FNGB ETNs), due Feb. 17, 2045, have been trading on the NYSE Arca since this February.
“The FNGB ETNs are meant to replace the FNGA ETNs and provide investors continued access to an ETN with three times leveraged, daily resetting, exposure to the [NYSE FANG+ Index], but with fees and charges that reflect the current market environment,” the bank said in a release.
The total return index is equally weighted and tracks the performance of “10 highly-traded growth stocks of technology and tech-enabled companies in the technology, media & communications and consumer discretionary sectors,” the release noted.
Scotia announces fund change
Scotia Global Asset Management has appointed a new sub-advisor to its 1832 AM Emerging Markets Equity Pool.
New York-based Pzena Investment Management, LLC will be a sub-advisor of the fund, effective on or about May 13, a release said.
No changes will be made to the investment objectives of the fund.
BMO announces change to fixed-income fund
BMOII has announced the upcoming termination of the series T6 units of the BMO Fixed Income ETF Portfolio.
The series is set to be terminated on or about July 11, 2025, a release said.
No further direct subscription for units of the series are accepted as of Thursday.
Unitholders of the series will no longer be able to exchange or redeem units once the series is terminated. All units held by investors after the series is terminated will be subject to a mandatory redemption, meaning they will receive redemption proceeds equal to the net asset value of those units on that date.