Toronto-based Purpose Investments Inc. will be changing the name and subadvisor of one of its fixed income ETFs, the investment manager announced Friday.
Purpose Tactical Investment Grade Bond Fund will become Purpose Global Bond Fund, effective Dec. 3. The ticker symbol on the Toronto Stock Exchange (BND) will not change.
The investment subadvisor will change from to New York-based Neuberger Berman Investment Advisers LLC from Neuberger Berman Breton Hill ULC.
The name change is meant to illustrate the broadening of the fund’s investment strategy from a focus on North American investment-grade bonds to investments in global investment-grade fixed income securities, Purpose says in a news release.
“The biggest challenge facing investors and advisors in today’s rising-interest-rate environment is how to manage interest rate risk and credit risk in their fixed-income portfolios,” Som Seif, president and CEO, says in a statement.
“Passively holding bonds over the past 30 years has been extremely rewarding. However, today, the reward relative to the risk of a ‘buy and hold’ passive bond portfolio is no longer as attractive. With Purpose Global Bond Fund, we focus on maximizing the yield and managing the duration and credit risks by utilizing an active, fundamental approach to global fixed-income securities and combine that with attractive fees. The result should be a better reward per unit of risk in a bond portfolio.”