Toronto-based Russell Investments Canada Ltd. has announced subadvisory changes to Russell U.S. Equity Pool, which is under the Russell Sovereign Investment Program; and Russell U.S. Equity Fund, in the Lifepoints Portfolio. For Russell U.S. Equity Pool, Schneider Capital Management Corp., Suffolk Capital Management Inc., Legg Mason Capital Management Inc. and Russell Implementation Services (in respect of Russell Select Holdings only) have been removed. Levin Capital Strategies LP has been added as a market-oriented specialist, with an 11% target weighting. For Russell U.S. Equity Fund, Aronson+Johnson+Ortiz LP, MFS Institutional Advisors Inc., Suffolk Capital Management Inc., Legg Mason Capital Management Inc. and Russell Implementation Services (in respect of Russell Select Holdings only) have been removed. Levin Capital Strategies LP has been added, with a 20% target weighting. Institutional Capital LLC also has been added as a large-cap value specialist and will manage 26% of the fund.

New income ETF from Jovian

Toronto-based Jovian Capital Corp., together with subsidiary AlphaPro Management Inc., has launched Horizons AlphaPro Enhanced Income Equity ETF. The exchange-traded fund’s investment objective is to provide exposure to the performance of an equal-weighted portfolio of large-cap Canadian companies and offer monthly distributions of dividend and call-option income. JovInvestment Management Inc. will act as investment advisor, with Eden Rahim as the ETF’s portfolio manager. Annual management fees are 0.65%, and there is a redemption charge of up to 0.25% of exchange or redemption proceeds.

New advisors for several SAM mandates

Toronto-based Scotia Asset Management LP has appointed new subadvisors and portfolio advisors for several mutual fund mandates. Goodman & Co. Investment Counsel Ltd. is now subadvisor on several SAM mandates, including
Scotia Global Opportunities Fund, Scotia International Value Fund, Scotia Global Small Cap Fund, Scotia Money Market Fund, Scotia US$ Money Market Fund and Scotia T-Bill Fund. As well, State Street Global Advisors Ltd. is now portfolio advisor on Scotia Nasdaq Index Fund and Scotia CanAm Index Fund.

Excel reduces risk ratings for two funds

Toronto-based Excel Funds Management Inc. has lowered investment-risk ratings to “low to medium” from “medium to high” for two of its newest funds, Excel EM High Income Fund and Excel EM Capital Income Fund. Excel EM High Income Fund’s portfolio covers sovereign and corporate emerging-markets fixed-income instruments, such as fixed- and floating-rate debt securities issued by corporations, governments or government-related entities. Excel EM Capital Income Fund aims to generate tax-efficient returns, primarily through exposure to its reference fund, Excel EM High Income Fund. Excel EM Capital Income Fund seeks to provide investors with a higher-yielding fixed-income solution in which its monthly distribution is characterized as a capital gain rather than ordinary income.

Desjardins makes changes to some funds

Lévis, Que.-based Desjardins Group has amended the investment strategies of some of the mutual funds in its fund family. The changes to the objectives for Desjardins Canadian Balanced Fund’s international equities component now allows the fund to invest in stock market securities, other than those in Canada and the U.S., through the acquisition of units through the Desjardins Overseas Equity Growth Fund. Desjardins American Equity Value Fund’s changed objective focuses primarily on investing in large-cap corporations that have a debt/equity ratio lower than industry average, are leaders in their market, have durable operational advantages and whose securities are undervalued. The changed objective for Desjardins Overseas Equity Value Fund focuses on identifying corporations that show stable or high profit growth, have debt lower than industry average and whose securities are traded at a reasonable price compared with other corporations that share similar characteristics. Furthermore, Desjardins has announced that it is proposing changes to the investment objective of Desjardins Global Equity Value Fund that are intended to increase the fund’s potential for dividend income. Desjardins Group is seeking the approval of unitholders, in a meeting to be held on or around May 17, to implement the changes to Desjardins Global Equity Value Fund.

Compiled by Olivia Li (oli@investmentexecutive.com).