Market month: Fund news and updates

Fund news from Dynamic, BMO, NEI, National Bank, iA Clarington

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Fund news

Dynamic rolls out three new active ETFs

Dynamic Funds on July 2 announced three additions to its active ETF lineup.

Dynamic Active Global Gold ETF (TSX: DXAU) aims for long-term capital appreciation by investing primarily in equity securities of gold companies based anywhere in the world. The fund is managed by Robert Cohen and Nawojka Wachowiak, who collectively have more than 60 years of industry experience with a focus on metals and mining.

Dynamic Active Mining Opportunities ETF (TSX: DXMO) seeks long-term capital appreciation by investing primarily in global equity securities of companies engaged in the exploration, development, and production of precious metals, base metals, rare earths and/or other commodities. This ETF is also managed by Mr. Cohen and Ms. Wachowiak.

Dynamic Active Real Estate ETF (TSX: DXRE) aims for long-term capital appreciation and income primarily through investment in a diversified portfolio of businesses around the world with potential for increased value due to ownership, management, or other investment in real estate assets. This fund is managed by Maria Benavente and Tom Dicker, who collectively have more than 30 years of industry experience, primarily in real estate.

BMO launches structured outcome ETF

BMO Asset Management Inc. on July 2 launched its new BMO US Equity Buffer Hedged to CAD ETF – July (CBOE CA: ZJUL).  The fund aims for income and appreciation by tracking the S&P 500 Hedged to Canadian Dollars Index, designed to measure the large-cap segment of the U.S. equity market while providing a buffer against the first 15% of a decrease in the market price of the Reference Index, over a period of approximately one year from the first business day of July of each year to on or about the last business day of June of the following year, referred to as the Target Outcome Period.

The fund may also invest in Converge Options that reference the price return of the Reference ETF to employ a “target outcome strategy.” Target outcome strategies seek to produce predetermined investment outcomes based upon the performance of the Reference ETF during the applicable Target Outcome Period. The predetermined outcomes sought by the fund include a buffer against the first 15% of decrease in the market price of Reference ETF and a predetermined upside cap are based on the return of the Reference ETF over the Target Outcome Period.

NEI debuts new global equity fund

NEI Investments on June 27 debuted its new NEI Global Corporate Leaders Fund, which aims for long-term capital growth by investing primarily in equity and equity-related securities of companies that provide products and services benefitting society, including housing, education, and health. The fund includes businesses that demonstrate a strong corporate culture that have often been correlated with stock price outperformance, including low employee turnover, gender-diverse leadership, and inclusive business practices. The fund is sub-advised by Impax Asset Management.

Dynamic adds Global Growth Opportunities fund to alternatives lineup

Dynamic Funds on June 25 added its new Dynamic Global Growth Opportunities Fund to its liquid alternatives lineup. The fund aims for long-term equity-related returns, and is managed by Dynamic’s veteran manager Noah Blackstein. The fund has been managed by Mr. Blackstein for nearly 10 years and was previously available only to accredited high net worth investors and institutions. It is now accessible to more investors, as it is being converted to an alternative mutual fund. The fund’s investment strategies will not change as a result of the conversion.

National Bank debuts five new target date bond funds

National Bank Investments Inc. on June 25 debuted five new funds: NBI Target 2025 Investment Grade Bond Fund; NBI Target 2026 Investment Grade Bond Fund; NBI Target 2027 Investment Grade Bond Fund; NBI Target 2028 Investment Grade Bond Fund; and the NBI Target 2029 Investment Grade Bond Fund.

The funds’ investment objective is to provide current income and preserve capital over a predetermined period. Each fund invests, directly or indirectly through investments in securities of other mutual funds, in portfolios comprised primarily of investment-grade bonds of North American companies with an effective maturity date. As target maturity funds, the funds have a predetermined, specified lifespan. Therefore, it is anticipated that the bonds held in these NBI funds will mature the same year as they are expected to terminate.

IFIC releases May fund statistics

The Investment Funds Institute of Canada (IFIC) on June 24 announced investment fund net sales and net assets for May 2024.

Mutual fund assets totalled $2.058 trillion at the end of May, up by $44.4 billion or 2.2% since April. Mutual fund net redemptions were $1.8 billion in May.

ETF assets totalled $429.2 billion at the end of May, up by $15.6 billion or 3.8% since April. ETF net sales were $4.4 billion in May.

May insights

• Mutual fund total assets reached their second highest monthly level ever (the highest level was in December 2021). The increase in assets was driven by positive market performance.
• For mutual funds, bond funds saw the highest net sales at $1.35 billion, while equity funds had net redemptions of $920 million.
• Money market mutual fund net sales turned positive after three consecutive months, with just over half of all money market funds experiencing positive inflows. Despite this positive trend, year-to-date net sales are 92% lower than the same period in 2023.
• Year-to-date ETF assets grew by $47.2 billion or 12.4%, which is close to double the growth in absolute terms compared with 2023.
• For ETFs, equity funds led with net sales of $2.8 billion, while bond funds also saw substantial inflows of $1.3 billion.

View the full report on the IFIC website.

iA Clarington launches three new global funds

iA Clarington Investments Inc. on June 17 launched three new funds:

IA Clarington Global Equity Plus Portfolio is a pure equity solution that consists of three underlying funds:

• iA Clarington Loomis Global Equity Opportunities Fund, sub-advised by Loomis Sayles.
• iA Clarington Global Equity Fund, sub-advised by QV Investors Inc.
• iA Clarington Global Dividend Fund, managed by iA Clarnington’s Dan Rohinton.

iA Clarington Global Balanced Plus Portfolio offers an additional layer of diversification by incorporating approximately 40% exposure to fixed income. The portfolio consists of four underlying funds:

• iA Clarington Loomis Global Allocation Fund and iA Clarington Loomis Global Multisector Bond Fund, sub-advised by Loomis Sayles.
• iA Clarington Strategic Income Fund and iA Clarington Strategic Corporate Bond Fund, managed by iA Clarington’s Dan Bastasic.

iA Clarington Loomis International Growth Fund aims a differentiated, alpha-focused investment solution driven by a disciplined and repeatable bottom-up investment process. The fund is managed by founder of Loomis Sayles, Aziz Hamzaogullari.

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The foregoing is for general information purposes only and is the opinion of the writer. No guarantee of investment performance is made or implied. It is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice.

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