Toronto-based iA Clarington Investments Inc. has partnered with global fixed-income specialist Dan Janis, who has co-founded his own firm after more than two decades with Manulife Investment Management in the U.S. The partnership is expected to bring new products and growth for the two firms.
Last week, Janis and his team launched Florida-based Agile Investment Management LLC. Janis, Agile’s president and chief investment officer, is the lead portfolio manager of the iA Clarington Core Plus Bond Fund. The fund launched in 2014 and has a management expense ratio of 1.53% (Series A).
With Manulife, Janis was head of global multi-sector fixed income and managed more than US$30 billion in assets, including the multibillion-dollar award-winning Manulife Strategic Income fund.
Agile’s co-founder, Kai Sotorp, was president and CEO of Manulife Investment Management from 2014 to 2017. When Janis retired from Manulife early last year, the two discussed working together, Janis said.
Sotorp handles operations, and, in addition to Janis, Agile’s portfolio management team includes Peter Azzinaro (previously a managing director of the Manulife Strategic Income Fund), Jonathan Birtwell and Noelle Corum.
The partnership with iA also reunites Janis with Manulife veteran Catherine Milum. She became president and CEO of iA Clarington Investments last year, after heading Manulife’s retail distribution.
“There’s a comfort level for us to … work together,” Janis said.
The partnership reflects Milum’s vision to build on iA Clarington’s fixed-income offerings, as well as its core capabilities and alternatives.
“There was some serendipity around partnering with Agile,” she said. “We needed [fixed income]; they were there.… Dan’s capabilities are proven.”
Milum also noted her plan to expand distribution within iA’s full-service brokerage, iA Private Wealth; dealer, Investia Financial Services; and to other investment dealers.
“First of all, you’ve got to look in your own backyard,” Milum said. “But where I also see a massive opportunity is within the IIROC [Investment Industry Regulatory Organization of Canada] firms.… I think team Agile is going to help us do that.”
“The right setup,” said Janis in reference to distribution, “is the salesperson knows the client and helps the [portfolio manager] to understand what the client wants, because we have to listen to them. … It’s a partnership.”
Client communication is part of the mix. “We want to make sure … [clients] understand what we’re doing, in English, not in bond speak,” he said. He aims for “full transparency on our views on macro and on the performance of the product.”
As of April 30, the iA Clarington Core Plus Bond Fund had $720 million in assets and consisted largely of Canadian, U.S. and foreign investment-grade corporate credit, with about 12% high yield. (High-yield exposure can be a maximum of 25%.)
“We want to make sure that the volatility is low,” Janis said. “And right now, you can get five and three-quarters plus [in yield], if you pay attention, in this credit side.”
The team may further diversify the fund’s investment-grade credit, he said, away from Canadian financials and energy and into the U.S. market.
Janis expects substantial asset growth for Agile over the next several years in Canada and globally, he said, and he also noted the supporting role of tech.
“We don’t need to have such a sizable team, because technology and AI [artificial intelligence] has made us more efficient,” he said. “We have a better chance to make a better-informed decision.”
And with AI, “I’m learning a new market all over again,” Janis said.
Next up for the iA Clarington-Agile partnership will be a global total return income fund, he said, which is expected to launch in October. An alternative fund version may follow next year, he said.
IA Clarington also expanded its longstanding relationship with Boston-based global investment manager Loomis, Sayles & Company LP, which is now subadvisor on the IA Clarington Floating Rate Income Fund and IA Clarington U.S. Dollar Floating Rate Income Fund.
Product roundup
Here are some other recent product developments.
In August, the Manulife International Large Cap Fund launched, sub-advised by Mawer Investment Management. The fund provides access to “a diversified portfolio of large-cap companies located in developed markets outside of Canada and the United States,” a release said.
CI Global Asset Management added to its covered call lineup with launches in August: the CI Multi-Sector Covered Call Fund, CI U.S. Aggregate Bond Covered Call Fund and CI U.S. Aggregate Bond Covered Call ETF.
On Tuesday, alternative asset manager Sagard, which is majority-owned by Power Corp., opened its new Sagard Private Credit Fund for Canadian accredited investors. The fund launched in partnership with iCapital, an alternative investments platform, after concluding a first closing with more than $50 million in initial capital, a release said.
On Thursday, the Vanguard Canadian Ultra-Short Government Bond Index ETF launched. The fund’s portfolio of Canadian government bonds and T-Bills have maturities of less than one year, and the fund’s management fee is 0.10%.