Mississauga, Ont.-based Excel Funds Management Inc., a mutual fund provider specializing in emerging markets, announced on Thursday that the firm expects its two new ETFs to be available for trading next week.
Regulatory authorities have approved the final prospectus for Excel Global Balanced Asset Allocation ETF and Excel Global Growth Asset Allocation ETF, and the units are conditionally approved for listing on the Toronto Stock Exchange on May 17.
The investment objective of Excel Global Balanced Asset Allocation ETF is to seek a targeted annul return of 2.5 percentage points over the Bank of Canada’s (BoC) overnight lending rate during a rolling two- to three-year period, before fees. The ETF targets volatility in a range of 4% to 6% for the same period.
Excel Global Growth Asset Allocation ETF has a targeted return in excess of five percentage points over the BoC overnight lending rate for a rolling three- to five-year period before fees, while targeting volatility in a range of 8% to 9%.
Excel is the first Canadian fund manager to leverage the expertise and proprietary mathematical models of Alken Asset Management of London, England. The firm’s subsidiary, Cabestan Quant Research Ltd., uses sophisticated quantitative models to make asset allocation decisions and manage risk. The two ETFs will be dynamically rebalanced to meet the defined risk and return targets.
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