Vancouver-based HSBC Global Asset Management (Canada) Ltd. has expanded its lineup of emerging-markets funds with its new HSBC Emerging Markets Debt Fund. The fund invests primarily in investment-grade or non-investment-grade bonds issued by governments or corporations in developing countries, or by other issuers that have a significant business or investments in emerging markets. The fund will be subadvised by HSBC Global Asset Management (USA) Inc. of New York. Advisor commissions for front-end sales are 0%-5%, up to 4.9% for deferred sales or up to 1% for the low-load option. Redemption fees begin at 6% in Year 1 and end at zero after Year 6 for the regular DSC schedule; or begin at 2% in Year 1 and end at zero after Year 2 of the low-load schedule. Trailing commissions are up to 0.5% for front-end sales, up to 0.25% for deferred sales and up to 0.5% for low-load sales. Management fees are 1.5% for A-class units. The minimum investment is $500.
BMO Asset Management launches ETFs
Toronto-based BMO Asset Management Inc. has added four new exchange-traded funds to provide more income-generating investment products at different risk levels. At the higher-risk end of the spectrum, BMO Covered Call Utilities ETF invests in a portfolio of Canadian utility companies, including those in the telecommunications and pipeline sectors, while seeking returns on call-option premiums. BMO Covered Call Dow Jones Industrial Average Hedged to CAD ETF invests in 30 U.S. blue-chip companies listed in the Dow Jones industrial average while seeking returns on call-option premiums. Management fees for both ETFs are 0.65%. For clients with lower risk profiles, BMO Canadian Dividend ETF seeks exposure to a yield-weighted portfolio of Canadian dividend stocks. BMO Low Volatility Canadian Equity ETF aims to provide low-risk, long-term capital growth in a weighted portfolio of lower-beta Canadian stocks. Management fees for both funds are 0.35%.
Advisor class added to Horizons ETFs
Toronto-based Horizons Exchange Traded Funds Inc. and its affiliate, AlphaPro Management Inc., have unveiled advisor classes on two ETFs with alternative investment strategies: Horizons Seasonal Rotation ETF and Horizons Gartman ETF. Horizons Seasonal Rotation ETF seeks exposure to equities, fixed-income, commodities and currencies during periods that have historically demonstrated seasonal trends. This fund’s seasonal rotation investment strategy was developed by research analysts Don Vialoux and Brooke Thackray. Horizons Gartman ETF invests in equities, futures contracts and ETFs to provide exposure to multiple asset classes that may include but are not limited to global equities, commodities, fixed-income and currencies. This fund’s subadvisor is the Gartman Letter LC in Suffolk, Va. Management fees for both ETFs are 0.75%.
Fund mergers at Manulife Mutual Funds
Toronto-based Manulife Mutual Funds, a subsidiary of Manulife Asset Management Ltd., has completed four fund mergers and two corporate-class fund mergers after receiving the approval of the funds’ unitholders and regulators. These changes seek to lower the administrative costs for investors by spreading operating costs and expenses across a larger pool of assets. In the trust fund lineup, Manulife Diversified Canada Fund has merged into Manulife Canadian Focused Fund; Manulife Canadian Balanced Growth Fund has merged into Manulife Value Balanced Fund; Manulife Global Monthly Income Fund has merged into Manulife Diversified Income Portfolio; and Manulife U.S. Mid-Cap Fund has merged into Manulife U.S. All Cap Equity Fund. Within the tax-deferred corporate class lineup, Manulife Diversified Canadian Class has merged into Manulife Canadian Focused Class, while Manulife Global Leaders Class has merged into Manulife Global Opportunities Class.
Claymore ETFs add advisor class
Toronto-based Claymore Investments Inc. has introduced advisor-class units on Claymore 1-10 Year Laddered Government Bond ETF and Claymore 1-10 Year Laddered Corporate Bond ETF. The Claymore 1-10 Year Laddered Government Bond ETF aims to correspond with the price and yield of the DEX 1- to 10-year laddered government bond index. Management fees are 0.65% for A-class units. The Claymore 1-10 Year Laddered Corporate Bond ETF aims to correspond to the price and yield of the DEX 1- to 10-year laddered corporate bond index. Management fees are 0.75% for A-class units.
Compiled by Olivia Li (oli@investmentexecutive.com)