Market month: Fund news and updates

Fund news from IFIC, Fidelity, Arrow, Invesco, Global X, Guardian, RBC

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Fund news

IFIC releases 2024 fund statistics

The Investment Funds Institute of Canada (IFIC) on Jan. 31 released its 2024 Investment Funds Report, offering data and comprehensive analysis of mutual fund and ETF sales and assets under management as well as industry trends.

“This report is the definitive source for investment fund data. IFIC is proud to provide this invaluable tool which helps us to understand the factors and trends shaping the investment landscape in Canada,” said Andy Mitchell, IFIC’s President and CEO.

Mutual fund assets reached record highs in the second half of 2024, and by year-end, increased by 15.7% (compared with 7.1% in 2023). In a notable milestone, ETF assets crossed the $500 billion mark in 2024, achieving a dramatic 35.5% increase in assets.

Data highlights

• At the end of 2024, Canadian mutual fund assets reached $2.242 trillion, while ETF assets reached an all-time high of $518 billion.
• Mutual fund net sales totalled $15.2 billion, which was the first year of positive net sales since 2021, and ETF net sales totaled $75 billion, the highest total ever and more than the previous two years combined.
• Alternative mutual fund assets totaled $28.4 billion and alternative ETF assets totaled $19.3 billion, representing 1.3% of total mutual fund assets and 3.7% of total ETF assets, respectively.
• Balanced funds comprised approximately 44% of total mutual fund assets, the largest portion of Canadian mutual fund assets while equity funds accounted for 63% of total ETF assets.

View complete monthly statistics on IFIC’s website.

Fidelity launches three new quantitative funds

Fidelity Investments Canada on Jan. 28 launched three new funds that use Fidelity’s proprietary quantitative and fundamental research.

Fidelity Absolute Income Fund

• The fund aims to achieve a high level of current income and the potential for capital gains.
• It invests primarily in a mix of fixed income securities of U.S. issuers and other issuers from around the world.
• The fund uses a proprietary quantitative model based on advanced research capabilities in the construction of its portfolio.
• ETF series trades on the TSX under the symbol FCAB.

Fidelity Advanced U.S. Equity Fund

• The fund aims to achieve long-term capital growth.
• It invests primarily in equity securities of U.S. companies.
• The fund uses a proprietary quantitative model based on advanced research capabilities in the construction of its portfolio.
• It also uses quantitative techniques that analyze fundamental research to systematically construct a broadly diversified portfolio.
• ETF series trades on the TSX under the symbol FAUS.

Fidelity Core U.S. Bond ETF (TSX: FCUB)

• The fund aims to provide a steady flow of income with the potential for capital gains.
• It invests primarily in U.S. fixed income securities, with an emphasis on investment grade fixed income securities.
• The fund uses a proprietary quantitative model based on advanced research capabilities in the construction of its portfolio.

Arrow Capital Management debuts new liquid alternative fund

Arrow Capital Management on Jan. 15 debuted its new liquid alternative mutual fund, WaveFront All-Weather Alternative Fund. It’s also available as an ETF series, listed on the TSX under the ticker symbol WAAV.

The fund uses a multi-asset, multi-strategy approach that aims for superior returns across diverse market conditions. It diversifies investments across all major asset classes – real estate, equities, commodities, fixed income, and diversified currency exposure, including gold.

Invesco renames three funds

Invesco Canada on Jan. 13 announced name changes to three Invesco funds. Effective on or about March 24, 2025.

• Invesco FTSE RAFI Global Small-Mid ETF (TSX: PZW) to be renamed Invesco RAFI Global Small-Mid ETF. The change also applies to U and F units.
• Invesco FTSE RAFI Global+ ETF Fund to be renamed Invesco RAFI Global+ ETF Fund.
• Invesco FTSE RAFI U.S. ETF Fund to be renamed Invesco RAFI U.S. ETF Fund.

The investment strategies of these Invesco funds will also be updated to align with the new investment strategies of the Invesco ETFs currently held by these Invesco funds.

Global X to terminate three ETFs

Global X Investments Canada on Jan. 10 announced that it will be terminating four of its exchange traded funds, effective at the close of business on or about March 24, 2025.

• Global X Carbon Credits ETF (TSX: CARB).
• Global X ReSolve Adaptive Asset Allocation Corporate Class ETF (TSX: HRAA).
• Global X S&P Green Bond Index ETF (TSX: HGGB).
• Global X Metaverse Index ETF (TSX: MTAV).

Guardian terminates two GuardPath funds

Guardian Capital Group on Jan. 10 announced that it will terminate GuardPath Managed Decumulation 2042 Fund and GuardPath Modern Tontine 2042 Trust, effective on or about March 28, 2025.

Guardian no longer accepts further direct subscriptions of mutual fund units or ETF units of the funds, including switches in from other funds. The monthly switches of the Decumulation Fund’s Hybrid Tontine Series Units into units of the Tontine Trust will also cease effective immediately.

The ETF units of the Decumulation Fund (TSX: GPMD) are anticipated to be voluntarily delisted from the Toronto Stock Exchange  at the request of the manager, and to cease trading, following market close on or about March 27, 2025.

RBC Indigo revamps fund lineup, announces wind-up plans

RBC Indigo Asset Management Inc. on Jan. 7 announced changes to the RBC Indigo Mutual Funds and/or RBC Indigo Pooled Funds, including proposed fund mergers, closures, and additional changes, effective on or about April 17, 2025.

On March 28, 2024, Royal Bank of Canada completed the acquisition of HSBC Bank Canada. Upon the completion of the acquisition, HSBC Global Asset Management (Canada) Limited became a wholly owned subsidiary of RBC and a member of the RBC Global Asset Management group of companies and was renamed RBC Indigo Asset Management Inc. RBC Indigo continued to operate as the manager of the RBC Indigo Funds and the funds were renamed.

Following the acquisition of HSBC assets, RBC Indigo and RBC Global Asset Management Inc. conducted a review of all fund offerings, which highlighted a high degree of overlap between funds offered by RBC Indigo and RBC GAM. In many cases, RBC Indigo and RBC GAM offer similar types of funds that provide the same exposure to underlying asset classes or that meet specific investment objectives.

Where there is overlap, the RBC Indigo Fund will merge into a substantially similar RBC GAM-managed fund. RBC Indigo Funds that are unique and where no suitable or comparable RBC GAM Fund exists will be either fully transitioned to RBC GAM or closed. Following the implementation of the fund mergers, transitions, and closures, RBC Indigo will be wound-up and dissolved.

See the RBC Indigo press release for complete details of the extensive restructuring.

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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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