Recent investment product launches

Investment Executive regularly lists notable new investment products launched in Canada. Here’s what has come out recently:

• Accredited investors looking to put their money into something other than publicly traded securities have another option with the new Mackenzie Northleaf Global Private Equity Fund. With a minimum investment of $25,000, the fund will invest 75% to 80% of the fund’s assets into institutional private equity funds, with the remaining assets in the Mackenzie Private Equity Replication Fund for liquidity. Mackenzie Investments partnered with Toronto-based Northleaf Capital Partners Ltd., a private investment fund manager, in 2020 and has since launched infrastructure and private credit funds. The new private equity fund generally provides annual redemptions on 120 days’ notice. Units redeemed within three years are subject to an early redemption fee of 5%. The fund’s management fee is 1.35% and its risk rating is high.
• IG Wealth Management launched two new product suites last month for Canadians with U.S. ties.
  • The IG U.S. Taxpayer Portfolios are for Canadian residents who are U.S. taxpayers. The BlackRock-managed portfolios try to limit annual client Internal Revenue Service reporting to a single passive foreign investment company, a release said, simplifying U.S. tax reporting. As a result, the portfolios invest primarily in U.S.-domiciled equity and fixed income ETFs.
    • The portfolios come in four versions with different asset allocations: Global Fixed Income Balanced, Global Neutral Balanced, Global Equity Balanced and Global Equity. The management fees range from 0.54% to 0.68%.
  • The IG Mackenzie U.S. Dollar Funds, sub-advised by Mackenzie Investments, are meant for clients who want to put their money into U.S.-dollar investments. The funds come in the same four asset allocation versions with risk ratings reflected. The fees range from 0.65% to 0.8%.
• Four new RBC iShares “Megatrends” ETFs started trading May 2 on the TSX.
  • The iShares Exponential Technologies Index ETF (TSX: XEXP) invests in companies that operate in big data and analytics, cloud computing, energy transition, fintech innovation and health-care innovation. The fund’s risk rating is medium and it’s management fee is 0.39%.
  • The iShares Global Clean Energy Index ETF (TSX: XCLN), which has a high risk rating, provides exposure to securities in the clean energy and clean power generation sectors. Its management fee is 0.35%.
  • The iShares Genomics Immunology and Healthcare Index ETF (TSX: XDNA) gives clients exposure to securities that could benefit from the long-term growth and innovation in genomics, immunology and bio-engineering. Its risk rating is high and its management fee is 0.39%.
  • The iShares Cybersecurity and Tech Index ETF (TSX: XHAK) focuses on cybersecurity and technology firms. Its risk rating is medium to high and its management fee is 0.39%.
• Manulife Investment Management introduced the Manulife United States Mid-Cap Equity Fund on March 22, along with a U.S.-dollar version. “U.S. large caps may not provide investors with as much diversification as they used to do, as the S&P 500 Index has become more concentrated than ever in recent years,” Manulife’s fund description said. The fund invests primarily in U.S. mid-cap equities; Treasury bills or short-term investments, not exceeding three years to maturity, may also be used from time to time. Calgary-based Mawer Investment Management Ltd. is the sub-advisor. The management fee is 0.83% and the risk rating is medium.
• Invesco Canada Ltd. launched two new asset allocation mutual funds on April 25 that use a fund-of-funds structure for a 60% equities/40% fixed income allocation.
  • The Invesco Global Select Balanced Fund has a risk rating of low to medium. The management and advisory fees are 2% for Series A and 0.70% for Series F.
  • The Invesco Global Balanced ESG ETF Fund invests primarily in ETFs with ESG-oriented strategies. With a low-to-medium risk rating, the fund has management and advisory fees of 1.35% for Series A and 0.35% for Series F.
• PenderFund Capital Management Ltd. launched the Pender Emerging Markets Impact Fund last month. The fund focuses on high-quality emerging market companies but is also partially invested in “impact-type holdings” that address ESG issues. The risk rating is medium. The management fee for Class F is 0.80%. Pender said the fund is not suitable for investors with a short or medium time horizon.

If you would like us to consider your launch, email Greg Meckbach at greg@newcom.ca.