Product news: AQR strategy comes to Canada

Canadian investors are getting access to a fund from Greenwich, Conn.-based AQR Capital Management LLC as the firm’s Apex strategy becomes available through the iCapital platform.

Co-founder Cliff Asness’s AQR, which manages US$99 billion in assets, is known for its quantitative investment strategies. Apex is a multi-strategy alternative fund that incorporates macro, stock selection and arbitrage strategies.

“Apex represents the culmination of our research process that has been honed over our 25-year history and reflects our foundational belief in generating attractive, diversifying returns,” said AQR co-founder David Kabiller in a release.

The Apex strategy, launched in 2020, posted net returns of 16.2% in 2023 and 17.1% in 2022, according to a person familiar with the fund’s performance who asked not to be identified. Its annualized return since inception is 18.5%.

The fund will be available to accredited investors through investment platform iCapital as the iCapital AQR Apex Canadian Access Fund.

NEI goes alternative

NEI Investments has launched its first alternative fund, a long-short strategy subadvised by Picton Mahoney Asset Management that maintains NEI’s responsible investing focus.

The NEI Long Short Equity Fund adds exclusionary screens, ESG integration and stewardship to Picton Mahoney’s active long-short equity strategy.

John Bai, senior vice-president and chief investment officer with NEI, said investors are looking to alternative strategies for lower correlations, risk and volatility.

“I think the combination of our in-house responsible investing expertise combined with Picton Mahoney’s specialized experience in alternatives addresses an important gap in the market,” he said in a release.

The management fee is 1% for series F and 2% for series A.

CIBC introduces target-maturity bond funds

CIBC Asset Management is the latest firm to offer target-maturity bond funds, with three new products that mature in 2025, 2026 and 2027.

The three CIBC Investment Grade Bond Funds invest primarily in Canadian government and investment-grade corporate bonds, prioritizing bonds trading at a discount to their maturity value. Foreign issuers aren’t expected to make up more than 10% of the funds.

“This is the first time in decades that a considerable amount of bonds within the Canadian bond market are trading at a discount to par,” said David Scandiffio, president and CEO of CIBC Asset Management, in a release.

The funds operate like individual bonds, terminating at a defined maturity date with net assets distributed to investors. Firms including CIBC are pitching target-date funds as a more convenient way to build bond ladders for clients.

The management fee on the three CIBC funds is 0.15% for series F and 0.40% for series A.

CI releases mutual fund versions of dividend ETFs

CI Global Asset Management introduced three dividend mutual funds that invest in existing ETFs.

The funds target quality large-cap, dividend-paying companies that grow their dividends over time, CI said.

The CI WisdomTree Canada Quality Dividend Growth Index Fund (management fees of 0.16% for series F and 1.16% for series A), the CI WisdomTree U.S. Quality Dividend Growth Index Fund (0.30% and 1.30%) and the CI WisdomTree International Quality Dividend Growth Index Hedged Fund (0.43% and 1.43%) each invest in the underlying ETF of the same name.