Sun Life Global Investments and Excel close 2 ETFs

Sun Life Global Investments (Canada) Inc. and Excel Funds Management Inc. are closing two Excel ETFs with the goal of refining the firm’s ETF strategy.

Effective at close of business on or about May 30, Sun Life Global Investments and Excel will close Excel Global Balanced Asset Allocation ETF and Excel Global Growth Asset Allocation ETF. The funds were launched in May 2017.

“We see great opportunity in the ETF market but have made the decision to take a more measured approach to evaluating the launch of ETFs at Sun Life Global Investments to ensure we’re bringing our clients the best solutions to help them reach their financial goals,” said Sadiq S. Adatia, chief investment officer at Sun Life Global Investments, in a release. “We continue to assess the ETF market and our clients’ needs as we explore the best potential approach for entering the ETF space.”

SLGI and Excel announced earlier this month that they were merging and changing administration fees for a number of other funds.

Read: Sun Life and Excel merge funds, announce other changes

Read: How active beat passive in 2017

Effective immediately, no further direct subscriptions for units of the ETFs will be accepted. May 24 is expected to be the last date for redemption requests for the ETFs. Units of the ETFs are expected to be de-listed from the Toronto Stock Exchange at the close of business on or about May 25, with all units still held by investors being subject to a mandatory redemption as of the termination date.

Any remaining unitholders of either ETF at the termination date will receive net proceeds from liquidation of the assets, less liabilities and expenses incurred in connection with the dissolution of that ETF, on a pro rata basis.

Effective at the close of business on or about Mar. 27, Alken Asset Management Limited will cease as sub-advisor to the ETFs. Excel Investment Council Inc. will continue to be responsible for the management of the ETFs until the termination date.

Also read:

Evolve Funds files preliminary ETF prospectus

Horizons resumes subscriptions for HVI

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.