What’s new from fund manufacturers

Advisor’s Edge regularly lists notable developments in Canada’s investment product landscape. Here are some newly released funds.

• IG Wealth Management launched three target-date mutual funds intended for RESP accounts. The IG Target Education Portfolio 2030, 2035 and 2040 have different time horizons, depending on when the clients’ children expect to start post-secondary studies. Sub-advised by BlackRock, the portfolios invest primarily in investment funds, gradually shifting the asset mix from equities to fixed income, money market and cash-equivalent as the target date approaches. Once a fund matures, its assets go into the IG Graduation Portfolio, sub-advised by Mackenzie Investments and designed to produce income and preserve capital. Management fees are 0.55%, 0.58% and 0.60% for the 2030, 2035 and 2040 portfolios, respectively. All three have a low to medium risk rating.
• BMO Asset Management Inc. introduced new sector-based equity ETFs and passive U.S. fixed-income ETFs that it says will help mitigate risk with covered calls and offer inflation protection.
  • The BMO Covered Call Energy ETF (TSX: ZWEN) invests in energy firms, including clean energy. The management fee is 0.65% and the risk rating is high.
  • The BMO Covered Call Health Care ETF (TSX: ZWHC) invests in health care companies. The management fee is 0.65% and the risk rating is medium.
  • The BMO Global Agriculture ETF (TSX: ZEAT) invests in agricultural firms including chemicals, farm machinery, food distribution and packaging. The management fee is 0.35% and the risk rating is medium.
  • The BMO US Aggregate Bond Index ETF (TSX: ZUAG) tracks the Bloomberg US Aggregate Bond Index, which includes government and corporate bonds, mortgage-backed securities and others. The hedged and U.S. dollar units trade as ZUAG.F and ZUAG.U respectively. The management fee is 0.08% and the risk rating is low to medium.
  • The BMO US TIPS Index ETF (TSX: TIPS) tracks the Bloomberg US Treasury Inflation-Linked Bond Index (Series-L), whose bonds have at least a year to maturity. The hedged and U.S. dollar units trade as TIPS.F and TIPS.U respectively. The management fee is 0.15% and the risk rating is low to medium.
• Fidelity Investments Canada ULC has released a U.S. large-cap equity fund with put options. The Fidelity SmartHedge U.S. Equity Fund, launched on Jan. 25, aims “to balance risk while offering potential for savings to grow, helping to support investor resiliency during challenging conditions,” said Kelly Creelman, senior vice-president, products and marketing with Fidelity, in a release. The fund invests mainly in U.S. stocks with market caps similar to firms in the S&P 500, managing downside risk with a ladder of put options. The management fee is 0.7% for Series F and the risk rating is medium.
• Counsel Portfolio Services Inc. is offering a gross rate of 4.75% on its new cash deposit product, the IPC High Interest Savings Fund, launched on Jan. 30. Effective rates, as of the launch date, were 4.47% for Series A and 4.58% for Series F, I and C, while the actual rate varies according to the prevailing interest rate. “When ready, investors have the flexibility to return to the markets systematically,” Counsel vice-president of product management Blair Setford said in a release. The fund is not insured by the Canada Deposit Insurance Corporation.
• Russell Investments Canada Limited has added tax management features to two of its existing funds as of Jan. 3. The Russell Investments Tax-Managed Global Equity Pool (started in 2013 as the Russell Investments Focused Global Equity pool), and the Russell Investments Tax-Managed US Equity Pool (started in 2011 as the Russell Investments Focused US Equity Pool) now use methods such as tax-loss harvesting, reducing offsetting trades, reducing portfolio turnover and seeking tax-efficient equities, Russell said in a release on Jan. 31. Management fees for both are 0.9% for Series F. The risk rating is medium.