Drawing on the expertise of portfolio manager Desjardins Global Asset Management (DGAM), Lévis, Que.-based Desjardins Funds has launched a family of strategic beta funds.
The four new IBrix Funds are: Desjardins IBrix Canadian High Dividend Equity Fund; Desjardins IBrix Canadian Equity Focus Fund; Desjardins IBrix Low Volatility Global Equity Fund; and Desjardins IBrix Global Equity Focus Fund.
“Strategic beta or smart beta management is based on a methodology designed to generate substantial additional value over a three- to five-year investment horizon,” explains Nicolas Richard, vice president, Investment Strategies, DGAM. “IBrix Funds use hybrid management, which strikes a balance between traditional active management and aims to outperform the market, and passive management, which aims to efficiently and transparently match the returns of a benchmark index. The IBrix Funds benchmark indices have been built by portfolio managers for long-term performance.”
DGAM started offering strategic beta management in 2008 to respond to the specific needs of institutional investors, developing an innovative methodology designed to capitalize on market inefficiencies while meeting specific client needs.
“Desjardins Global Asset Management’s strategic beta management approach is threefold,” explains Richard. “First, to limit the risk of overweighting overvalued securities, Desjardins Global Asset Management builds its portfolios independent of the market capitalization that indices have traditionally been based on. Next, the portfolio manager identifies the specific characteristics deemed to be long-term sources of value or that meet the investor’s needs, such as high dividend payments or environmental criteria. Finally, the portfolio construction process maximizes efficiency.”
Desjardins Funds has also added Desjardins IBrix Low Volatility Global Equity Fund to its Melodia Income Portfolios.
Desjardins Group is the leading cooperative financial group in Canada and the fifth largest cooperative financial group in the world with assets of more than $229 billion.