Market month: Fund news and updates

Fund launches and terminations from iA Clarington, Horizons, Dynamic, and Franklin Templeton

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Fund news

iA Clarington launches three new ETFs

IA Clarington Investments Inc. on Oct. 31 announced the addition of three ETFs to the firm’s exchange-traded series:

• IA Clarington Loomis Global Equity Opportunities Fund (TSX: IGEO), sub-advised by Loomis, Sayles & Company, L.P. The fund holds a diversified portfolio of shares of companies located anywhere in the world.
• IA Clarington Strategic Corporate Bond Fund (TSX: ISCB), managed by iA Clarington’s Dan Bastasic, the fund invests primarily in fixed-income securities with an emphasis on corporate and other higher-yielding fixed-income securities.
• IA Wealth Enhanced Bond Pool (TSX: IWEB), managed by Sébastien Mc Mahon and Tej Rai of iAGAM, the invests primarily, either directly or indirectly, in Canadian fixed-income securities.

Horizons changes robotics ETF’s name

Horizons ETFs Management (Canada) on Oct. 25 announced that it will change the name of the Horizons Robotics and Automation Index ETF to the Horizons Robotics & AI Index ETF (TSX: RBOT). Horizons says the name of the ETF has been changed to more closely correspond to the name of the ETF’s underlying index, the Indxx Global Robotics & Artificial Intelligence Thematic Index.

Dynamic launches four new active ETFs

Dynamic Funds on Oct. 24 announced the expansion of its Active ETF lineup with the launch of four new ETFs.

• Dynamic Active Canadian Bond ETF (TSX: DXBC) invests in an actively managed and diversified portfolio of primarily Canadian fixed income securities. This ETF is managed by Dynamic’s Derek Amery.
• Dynamic Active Global Equity Income ETF (TSX: DXGE) invests primarily in stocks globally that pay a dividend or distribution. The ETF is managed by Dynamic’s Equity Income Team’s Ryan Nicholl, Thomas Dicker, and Jason Gibbs.
• Dynamic Active U.S. Equity ETF (TSX: DXUS) holds a broad range of U.S. stocks and is managed by Dynamic’s Vishal Patel.
• Dynamic Active U.S. Investment Grade Corporate Bond ETF (TSX: DXBU) invests primarily in U.S. dollar denominated investment-grade corporate bonds and is managed by Dynamic fixed-income managers Domenic Bellissimo and William Lytwynchuk.

Dynamic winds up DMP

Dynamic Funds announced on Oct. 23 that it will wind up Dynamic Managed Portfolios Ltd. mutual fund corporation, to streamline its product shelf and more closely align with client preferences. The mergers of the terminating funds are expected to take effect on or about Nov. 17.

DMP Resource Class and DMP Power Global Growth Class will be merged into DynamicEdge Balanced Growth Portfolio.

DMP Value Balanced Class will be merged into Dynamic Value Balanced Fund.

IFIC releases September fund statistics

The Investment Funds Institute of Canada (IFIC) on Oct. 20 released fund statistics for September 2023.

Mutual fund assets totalled $1.836 trillion at the end of September, while assets decreased by $64.8 billion, or 3.4%, compared with August. Mutual funds recorded net redemptions of $7.6 billion in September.

ETF assets totalled $346.5 billion at the end of September, and assets decreased by $8.5 billion, or 2.4%, from August. ETFs recorded net sales of $2.9 billion in September.

Year to date, mutual fund assets increased by $26.5 billion, or 1.5%, and ETF assets increased by $32.8 billion, or 10.5%.

Similar to last month, money market fund sales were highest across all major asset classes for both mutual funds and ETFs, with the majority going into high-interest saving account (HISA) funds.

Thirty per cent of mutual funds had positive net sales and 51% of ETFs had positive net sales.

Franklin Templeton terminates two active ETFs

Franklin Templeton Canada on Oct. 12 announced that it will terminate its Franklin Core Balanced Active ETF (TSX: FLBA) and Franklin Risk Managed Canadian Equity Active ETF (TSX: FLRM), on or around December 13. Voluntary delisting will occur at the close of business on or around December 7. Unitholders who do not sell or redeem their units before the close of business on December 7, 2023, will receive cash representing their proportionate share of the ETF’ assets on or around December 14.

Dynamic debuts new liquid alternative fund

Dynamic Funds on Oct. 11 debuted its new liquid alternative solution, Dynamic Credit Opportunities Fund. The fund seeks to generate absolute returns over a complete market cycle through long and short positions in primarily corporate debt securities. It seeks enhanced risk-adjusted returns by investing in multiple assets classes in the credit spectrum including investment-grade corporate bonds, high yield bonds, preferred shares, hybrids, and loans. The fund is actively managed by Dynamic’s Marc-André Gaudreau.

Horizons launches six new ETFs

Horizons ETFs Management (Canada) Inc. on Oct 11 announced four new ETFs within its Asset Allocation Suite, as well as two ETFs within its Equity Essentials suite.

New ETFs in Asset Allocation Suite

• Horizons Enhanced All-Equity Asset Allocation ETF (TSX: HEQL) provides 1.25 times leverage exposure to an all-equity asset allocation portfolio. It invests in exchange traded funds that provide exposure to a globally diversified portfolio of equity and fixed income securities.
• Horizons Growth Asset Allocation Covered Call ETF (TSX: GRCC) uses a covered call approach to asset allocation investing. It invests in exchange traded funds that provide exposure to a globally diversified portfolio of equity securities. To mitigate downside risk and generate premiums, GRCC will be exposed to a dynamic option writing program.
• Horizons Enhanced All-Equity Asset Allocation Covered Call ETF (TSX: EQCL) combines enhanced and covered call exposures in an all-equity asset allocation portfolio. It invests, directly or indirectly, in exchange traded funds that provide exposure to a globally diversified portfolio of equity securities. To generate premiums, the fund will be exposed to a dynamic covered call option writing program. EQCL will also employ leverage through cash borrowing and will generally endeavour to maintain a leverage ratio of approximately 125%.
• Horizons Growth Asset Allocation ETF (TSX: HGRW) invests in exchange traded funds that provide exposure to a globally diversified portfolio of equity and fixed income securities.

New ETFs in Equity Essentials Suite

• Horizons Enhanced NASDAQ-100 Covered Call ETF (TSX: QQCL) provides 1.25x and covered call exposure to the Nasdaq-100 index and aims for high monthly distributions of dividend income and call option premiums. To generate premiums, QQCL will be exposed to a dynamic covered call option writing program. The fund will also employ leverage through cash borrowing and will generally endeavour to maintain a leverage ratio of approximately 125%.
• Horizons Enhanced Canadian Oil and Gas Equity Covered Call ETF (TSX: ENCL) provides 1.25x and covered call exposure to Canadian Oil & Gas companies. The fund tracks the Solactive Equal Weight Canada Oil & Gas Index and aims to provide high monthly distributions of dividend income and call option premiums. To generate premiums, ENCL will be exposed to a dynamic covered call option writing program. The fund will also employ leverage through cash borrowing and will generally endeavour to maintain a leverage ratio of approximately 125%.

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