The alternative investment momentum appears strong in 2025, with two asset management companies rolling out new funds — on the same day — that give Canadian investors exposure to alternative investment strategies.
On Thursday, AGF Capital Partners, AGF Management Ltd. (AGF)’s multi-boutique alternatives business, and Sagard, a global alternative asset manager, announced the launches of funds for investors interested in alternative strategies.
The AGF NHC Tactical Alpha Fund aims to deliver an absolute return-oriented strategy and allocates to a fund with “a diverse range of alternative investment strategies within a risk-managed framework,” a release said.
Namely, the fund invests in the New Holland Tactical Alpha Offshore Fund Ltd., a Cayman Islands exempted company, which in turn will invest substantially all of its assets in the New Holland Tactical Alpha Master Fund LP, a Cayman Islands exempted limited partnership, managed by New Holland Capital (NHC).
The fund’s launch signifies the next step in AGF’s partnership with NHC, which was announced in February 2024, as the firm continues to build and grow its alternative investments business, said Ash Lawrence, head of AGF Capital Partners, in the release.
Sagard’s evergreen private equity fund, on the other hand, was specifically designed for Canadian accredited investors and invests in a diversified portfolio of secondaries, co-investments and primaries.
The Sagard Private Equity Strategies Fund has targeted long-term annual net returns of 14–18%, a release said, and its first closing will include $50 million in initial capital.
Eligible accredited investors can subscribe to the Sagard fund through their advisors every month, with quarterly redemptions available, subject to certain conditions. The minimum investment threshold for the product is $25,000.
The news comes after the launch of the Sagard Private Credit Fund in fall 2024.
TD launches new ETFs, NVCC offering
TD Asset Management Inc., a subsidiary of Toronto-Dominion Bank, has expanded its ETF lineup, with two new U.S.-dollar offerings and three target-maturity bond ETFs hitting the Toronto Stock Exchange (TSX) on Tuesday.
They include:
- TD Q U.S. Small-Mid Cap Equity ETF (TSX: TQSM.U), which uses a quantitative investment approach to invest primarily in, or gain exposure to, equity securities of small or medium-sized issuers located in the United States. The ETF has a management fee of 0.40%. It is the U.S.-dollar version of the original TD Q U.S. Small-Mid Cap Equity ETF, which launched in November 2019.
- TD U.S. Cash Management ETF (TSX: TUSD.U) invests primarily in high-quality debt securities such as money market and short-term fixed income securities denominated in U.S. dollars. Its management fee is 0.15%. The fund is the U.S.-dollar version of the TD U.S. Cash Management ETF, which has an inception date of February 2024.
- TD Target 2028 Investment Grade Bond ETF (TSX: TBCH), TD Target 2029 Investment Grade Bond ETF (TSX: TBCI) and TD Target 2030 Investment Grade Bond ETF (TSX: TBCJ). These funds are set to terminate in the years 2028, 2029 and 2030, respectively, and invest primarily in a portfolio of investment-grade Canadian corporate bonds denominated in Canadian dollars. They each have a management fee of 0.20%.
TD also announced on Tuesday that it is issuing €750 million of fixed-rate reset subordinated notes (non-viability contingent capital or NVCC).
The NVCC offering will bear interest at a fixed rate of 4.03% each year until Jan. 23, 2031, and at the five-year mid-swap rate plus 1.5% after that, until it matures on Jan. 23, 2036, a release said.
The bank said it may, with the prior approval of the Office of the Superintendent of Financial Institutions, redeem the notes on Jan. 23, 2031, “in whole but not in part, at par plus accrued and unpaid interest on not more than 60 nor less than 10 days’ notice to holders.”
The offering is expected to close on Jan. 23, 2025.
Global X updates some ETF tickers
Ticker symbols for certain BetaPro ETFs managed by Global X Investments Canada Inc. will be updated “to better reflect their respective exposures,” the firm said on Tuesday.
However, the investment objectives, strategies and existing names of the funds will remain the same.
A full list of the affected ETFs is available here.
The ticker updates are expected to be reflected on the TSX this upcoming Monday.
Invesco announces changes to seven funds
On Monday, Invesco Canada Ltd. announced proposed changes to four ETFs and three mutual funds.
Three funds are set to have “FTSE” dropped from their names on or about March 24. They include:
- Invesco FTSE RAFI Global Small-Mid ETF (TSX: PZW, PZW.U), subject to the acceptance of the TSX
- Invesco FTSE RAFI Global+ ETF Fund
- Invesco FTSE RAFI U.S. ETF Fund
In a release, Invesco said there would be no changes to the investment objectives or tickers, where applicable, for these funds.
As well, subject to investor approval and investor meetings that will be held on or about March 20, Invesco is proposing to change the investment objectives of the following funds.
- Invesco FTSE RAFI Canadian Index ETF (TSX: PXC), which is proposed to track the RAFI Fundamental Select Canada 100 Index. The fund currently tracks the FTSE RAFI Canada Index. Invesco is also proposing to rename the fund to Invesco RAFI Canadian Index ETF.
- Invesco FTSE RAFI U.S. Index ETF (TSX: PXU.F), which is to track the RAFI Fundamental Select US 1000 Index. The fund currently tracks the FTSE RAFI US 1000 Index. Invesco is also proposing to rename the fund to Invesco RAFI U.S. Index ETF.
- Invesco FTSE RAFI U.S. Index ETF II (TSX: PXS and PXS.U), which is proposed to track the Invesco RAFI U.S. Index ETF II. It currently tracks the FTSE RAFI US 1000 Index. Invesco is also proposing to rename the fund to Invesco RAFI U.S. Index ETF II.
- Invesco FTSE RAFI Canadian Index ETF Class, which is to track the RAFI Fundamental Select Canada 100 Index. The fund currently tracks the FTSE RAFI Canada Index. It is proposed to be renamed to Invesco RAFI Canadian Index ETF Class.
The proposed changes would allow the funds to track indices provided by Research Affiliates, LLC instead of indices provided by FTSE International Ltd. (in conjunction with Research Affiliates, LLC).
Invesco said the implementation of the investment objective changes is subject to the acceptance of the TSX. There are no set changes to the tickers, where applicable, for these funds.
Canadian Western Bank terminates dividend reinvestment plan
Canadian Western Bank (CWB) announced on Thursday that it has decided to terminate its dividend investment plan (DRIP), in connection with the acquisition of CWB by National Bank of Canada.
More details on what will happen to plan accounts are available here.