Market month: Fund news and updates

Fund news from Global X, RBC, Desjardins, Arrow, and TD

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Fund news

Global X launches 17 new ETFs

Global X on May 1 announced it is launching 17 new ETFs throughout May. The new ETFs are included in four key suites:

• Equity Essentials: ETFs focused on providing essential Canadian, U.S., and global equity index exposure in partnership with the world’s leading index providers.
• Thematic/Sector: ETFs focused on providing exposure to nascent, innovative and difficult-to-access themes and sectors.
• Covered Calls & Options-Based: ETFs that offer equity and fixed income exposures and seek to generate additional income through actively-managed covered call and options programs.
• Enhanced Index & Enhanced Covered Call: ETFs that offer 1.25 times leverage on underlying ETFs to potentially amplify returns and covered call writing to enhance income.

RBC launches eight new Target Maturity bond ETFs

RBC iShares on April 24 expanded its Target Maturity bond ETF lineup with the launch of six RBC Target Maturity U.S. Corporate Bond ETFs, as well as RBC Target 2030 Canadian Government Bond ETF and RBC Target 2030 Canadian Corporate Bond Index ETF.

With maturities ranging from 2025 until 2030, each RBC Target Maturity U.S. Corporate Bond ETF seeks to provide income, for a limited period of time ending on its respective Termination Date (defined as on or about Sept. 30 of the applicable maturity year), by investing primarily in a portfolio of investment-grade fixed-income securities issued in the U.S. market by U.S. and foreign corporations that mature in the same calendar year as its respective Termination Date. Each RBC Target Maturity U.S. Corporate Bond ETF is available in U.S. dollar and Canadian dollar units.

IFIC releases March fund industry statistics

The Investment Funds Institute of Canada (IFIC) on April 23 announced investment fund net sales and net assets for March 2024.

Mutual fund assets totalled $2.055 trillion at the end of March, up by $43.1 billion, or 2.1% since February. Mutual fund net sales were $0.2 billion in March.

ETF assets totalled $417.1 billion at the end of March, up by $13.4 billion, or 3.3% since February. ETF net sales were $4.0 billion in March.

• Mutual fund and ETF assets increased for the fifth consecutive month. For mutual funds, assets increased by 13.5%, or by $244.4 billion, since October 2023. ETF assets increased by 20.8%, or by $71.8 billion.
• Bond funds have been the largest source of mutual fund inflows and the best-selling asset category for the past four months. Prior to December, money market funds saw the highest inflows each month going back to March 2023.
• For ETFs, inflows remained concentrated in equity funds. Year to date, equity funds accounted for 74.1% of total net sales.

The detailed report can be viewed on the IFIC website.

Desjardins debuts four new index ETFs

Desjardins Investments Inc. on April 18 debuted four new index ETFs.

• Desjardins Canadian Corporate Bond Index ETF (TSX: DCBC) tracks the Solactive Canadian Bond Universe Corporate TR Index. The fund invests primarily in corporate bonds issued in the Canadian Market.
• Desjardins Canadian Equity Index ETF (TSX: DMEC) tracks the Solactive Canada Broad Market Index. The fund invests primarily in large- and mid-cap securities of Canadian companies.
• Desjardins American Equity Index ETF (TSX: DMEU) tracks the Solactive GBS United States 500 CAD Index and invests primarily in large- and mid-cap securities of American companies.
• Desjardins International Equity Index ETF (TSX: DMEI) tracks the Solactive GBS Developed Markets ex North America Large & Mid Cap CAD Index and holds primarily large- and mid-cap securities of international companies.

Arrow winds up Exemplar Portfolios, merges funds

Arrow Capital Management Inc. on April 16 announced that it will wind up Exemplar Portfolios Ltd., impacting its suite of five corporate class funds. Each fund will merge into its corresponding trust fund equivalent, on a tax-deferred basis. The equivalent trust funds will have a substantially similar investment objective and will be managed by the same portfolio management team. The mergers will take place on or about Monday, June 24, 2024.

• Arrow Canadian Advantage Alternative Class merges into Arrow Long/Short Alternative Class.
• Arrow Global Advantage Alternative Class merges into Arrow Global Multi-Asset Alternative Class.
• Arrow Global Opportunities Alternative Class merges into Arrow Opportunities Alternative Class.
• Exemplar Global Growth and Income Class.
• WaveFront Global Diversified Investment Class.

Desjardins launches two new corporate bond funds

Desjardins Investments on April 15 debuted two new corporate bond funds.

The Desjardins Canadian Corporate Bond Fund, offered in Class I and W units aims for a high-level of interest income and some potential for capital appreciation in the long term. The fund invests primarily in investment-grade fixed-income securities issued by Canadian corporations.

The Desjardins Sustainable Canadian Corporate Bond Fund, also offered in Class I and W units targets a high-level of interest income and some potential for capital appreciation in the long term. It invests primarily in investment-grade fixed-income securities issued by Canadian corporations while employing a responsible investing approach.

TD expands active Target Maturity Bond ETF lineup

TD Asset Management Inc. on April 9 debuted the TD Target Maturity Bond ETFs with maturities between 2025 and 2027. 

Each of the new ETFs seeks to provide regular income and preserve capital by investing primarily in a portfolio of investment-grade corporate bonds, with the TD Target Maturity Canadian Bond ETFs focusing on investment-grade Canadian corporate bonds denominated in Canadian dollars, and the TD Target Maturity U.S. Bond ETFs on investment-grade U.S. corporate bonds denominated in U.S. dollars.

RBC terminates PH&N Inflation-Linked Bond fundF

RBC Global Asset Management Inc. on April 1 announced that it will terminate the Phillips, Hager & North Inflation-Linked Bond Fund on or about June 14, 2024. The fund is closed to new purchases effective immediately.

RBC rebrands HSBC Global Asset Management as RBC Indigo

Royal Bank of Canada announced that effective March 29, it is renaming HSBC Global Asset Management (Canada) Ltd. (recently acquired as part of RBC’s takeover of HSBC Canada) as RBC Indigo Asset Management Inc. In addition all HSBC mutual funds and HSBC pooled funds managed by RBC Indigo will be referred to as RBC Indigo Mutual Funds and RBC Indigo Pooled Funds and will be renamed.

RBC also announced that RBC Indigo Strategic Funds (formerly known as HSBC Wealth Compass Funds) are closed to new investors effective April 1, 2024. Existing investors will continue to be able to add to their existing holdings.

Premium Series and Premium T Series of RBC Indigo Mutual Funds (formerly known as HSBC Mutual Funds) will also be closed to new investors effective July 31, 2024.

HSBC funds will be renamed under the RBC Indigo brand. For more information, see the RBC press release.

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