Market month: Fund news and updates

Fund news from Manulife, Fidelity, RBC, NBI, and Vanguard

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Fund news

Manulife launches ETF series of alternative funds

Manulife Investment Management announced on Oct. 1 three new ETF series of alternative mutual funds:

• Manulife Alternative Opportunities Fund – ETF Series (CBOE CAN: OPPS) provides an ETF version of the alternative mutual fund that aims to generate attractive long-term total returns through income and capital appreciation while mitigating potential volatility through hedging strategies..
   
• Manulife Strategic Income Plus Fund – ETF Series (CBOE CAN: PLUS) provides an ETF version of the alternative mutual fund that seeks to maximize total return through income generation and capital appreciation.
   
• Manulife Strategic Income Fund - ETF Series (CBOE CAN: STRT) provides an ETF version of the mutual fund with an investment objective to generate income with an emphasis on capital preservation.

Fidelity debuts Premium Yield ETF

Fidelity Investments Canada on Sept. 26 launched Fidelity Equity Premium Yield ETF (CBOE CAN: FEPY). This aims to provide investors with cash flow and to potentially achieve long-term growth while mitigating portfolio volatility.

The fund invests in stocks, such as companies in the S&P 500 or Russell 1000. At the same time, it sells call options on a stock index representative of the stocks in the portfolio. When the ETF sells these call options, it collects premiums to help generate cash flow. How much cash flow it generates depends on the implementation of the call writing strategy. The portfolio manager selects which call options to sell, choosing different ones with distinct prices and expiration dates. This strategy helps to spread out the risk and aims to increase potential returns.

IFIC releases August fund statistics

The Investment Funds Institute of  Canada (IFIC) on Sept. 20 announced investment fund net sales and net assets for August 2024.

Mutual fund assets totalled $2.145 trillion at the end of August, up by $7.7 billion, or 0.4%, since July. Mutual fund net sales were $2.4 billion in August.

ETF assets totalled $464.0 billion at the end of August, up by $5.9 billion, or 1.3%, since July. ETF net sales were $4.3 billion in August.

August insights

• Mutual fund net sales were positive for the second consecutive month.
• Year to date, mutual funds experienced inflows of $3.6 billion, compared to outflows of $23.2 billion over the same period last year.
• Money market funds experienced the largest single month of outflows since November 2021, largely the result of outflows from high-interest saving account funds.
• Year to date, ETFs experienced inflows of $41.6 billion, which is 82% higher than inflows over the same period last year.

To view the full report, visit the IFIC website.

RBC launches two ETF series

RBC iShares on Sept. 18 announced the launch of two new ETF Series of RBC Funds, which are managed by RBC Global Asset Management Inc.

RBC Life Science and Technology Fund – ETF Series (CBOE CAN: RLST) aims to provide investors with long-term capital growth by investing primarily in equity securities of U.S. companies whose businesses relate to life sciences and technology.

RBC U.S. Mid-Cap Growth Equity Fund – ETF Series (CBOE CAN: RUMG) aims to provide investors with long-term capital growth by investing primarily in equity securities of U.S. mid-cap companies.

NBI terminates two funds

National Bank Investments Inc. on Sept. 12 announced the termination of the NBI Canadian Family Business ETF (TSX: NFAM) and the NBI Canadian Preferred Equity Private Portfolio. In a release, the company said the terminations were “part of its ongoing efforts to simplify its investment solutions offering.”

Vanguard’s new ultra-short bond ETF

Vanguard Investments Canada Inc. on Sept. 12 announced the launch of a new domestic fixed-income ETF.

Vanguard Canadian Ultra-Short Government Bond Index ETF (TSX: VVSG) tracks the Bloomberg Canadian Short Treasury 1-12 month Float Adjusted Index. It invests primarily in public, investment-grade government fixed-income securities with maturities of less than 365 days issued in Canada.

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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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