Product roundup: J.P. Morgan rolls out new fixed-income ETF  

J.P. Morgan Asset Management Canada (JPMAM) has rolled out a new actively managed fixed-income ETF.

Launched May 27, the JPMorgan Income Active ETF (TSX: JPIE) invests in a diverse range of fixed-income and floating-rate debt securities from around the world, particularly those from the U.S., with the aim of generating income.

“We’ve had a roadmap for about two and a half years, when we launched the advisor business, to bring the best, most successful ETFs from around the world to Canadian investors, and JPIE was one of them,” said Jay Rana, head of Canadian advisor business at JPMAM, in an interview.

“Also, the timing reflects the demand from investors and financial advisors in Canada for income, and that’s why we’re super excited to bring this to Canada.”

JPIE joins two other actively managed fixed-income ETFs in JPMAM’s roster: the JPMorgan Ultra-Short Income ETF (TSX: JPST) and JPMorgan Active Bond ETF (TSX: JBND).

Rana said JPIE differs from JPST and JBND, which were designed to be short-dated, core fixed-income products, because it is designed primarily to generate income through a globally diversified fixed-income portfolio while maintaining a risk profile similar to that of core bond funds.

The new fund has a 0.39% management fee. It’s also hedged to the Canadian dollar to help mitigate currency risk.

Vanguard’s new ETFs are all about dividends

Vanguard Investments Canada Inc. has added two new dividend-focused funds to its ETF roster.

The Vanguard Developed ex-North America Dividend Appreciation Index ETF (TSX: VIGG) and Vanguard U.S. High Dividend Yield Index ETF (CAD-Hedged) (TSX: VUDH) began trading on the TSX on Monday.

VIGG seeks to track a market cap-weighted index that is focused on companies in developed markets outside of Canada and the U.S. “with a history of increasing dividends over time,” a release said. Currently, it seeks to track the performance of the S&P Developed ex-North America Dividend Growers Index.

VUDH, on the other hand, seeks to track a market cap-weighted index, the FTSE High Dividend Yield Index (CAD hedged), which is focused on common stocks of U.S. companies “that are characterized by higher-than-average dividend yields.” It’s also hedged to the Canadian dollar.

“These ETFs can serve different portfolio objectives whether it’s higher current income, longer-term dividend growth or reduced currency volatility,” said Sal D’Angelo, head of product and marketing with Vanguard Canada, in the release.

“Our goal is to provide financial advisors and investors with a full breadth of tools to build resilient and low-cost portfolios that can help their clients achieve long-term investment success.”

Both funds have a management fee of 0.28%.

Fidelity launches funds with exposure to various markets

Fidelity Investments Canada ULC has introduced several new funds that provide investors with exposure to alternative, Canadian and global markets.

Specifically, on May 20, it launched four new mutual funds and corresponding ETF series, along with a new mutual fund version of an existing ETF.

The new products include:

• Fidelity Emerging Markets Opportunities Fund and a corresponding ETF Series (TSX: FEMO). The actively managed fund offers exposure to emerging markets to help diversify a global equity portfolio.

• Fidelity Global Concentrated Value Fund and its corresponding ETF Series (TSX: FGCV). The fund seeks to provide exposure to undervalued global equities.

• Fidelity Alternative Bond Fund and its corresponding ETF Series (TSX: FFAB). The fund uses both long and short positions to help navigate the ever-changing bond markets.

• Fidelity Multi-Alt Balanced Fund and its corresponding ETF Series (TSX: FMAB). The fund invests in a diverse mix of equity- and fixed income-focused liquid alternative strategies to offer diversification benefits.

• Fidelity All-Canadian Equity ETF Fund, which is a mutual fund version of the existing Fidelity All-Canadian Equity ETF (TSX: FCCA). The fund invests in a diversified portfolio of Canadian equities.

“In an increasingly crowded ETF marketplace, it can be hard to choose products for your portfolio. What sets Fidelity apart is our portfolio management expertise, global research, and long-term performance,” said Kelly Creelman, executive vice-president, products and innovation with Fidelity, in a release on May 20.

“Today’s launch gives investors and advisors access to these strengths, and new ways to invest in Canada, emerging and developed markets, and alternatives.”

The release also noted that Fidelity has seen its ETF assets under management grow by 1,221% between December 2021 and April 2026.

Global X brings new active ETF to market

Global X Investments Canada Inc. has launched an actively managed ETF that focuses on both dividends and share buybacks.

The Global X Active U.S. Dividend ETF (TSX: DIVY) and a corresponding U.S.-dollar version of the fund (TSX: DIVY.U) started trading on May 27. Currency hedging is not employed in either of the ETF units.

According to a release, the fund is actively managed and “focused on total shareholder return from U.S. companies, evaluating both dividends and share buybacks rather than dividend yield alone.”

The fund is sub-advised by Global X’s parent company, Mirae Asset Global Investments (USA) LLC, also known as Mirae Asset USA.

“Too many dividend strategies are still chasing yield, and in our view, that’s the wrong starting point,” said Ryan Coyle, senior portfolio manager with Mirae Asset USA, in the release.

“The companies we want to own are the ones with the discipline to grow their returns over time — not the ones with the highest yield today. That’s the lens we apply every month when we review the portfolio, and it’s what we believe sets DIVY apart.”

The ETF also uses a Mirae Asset USA affiliate’s proprietary AI technology to identify businesses that can sustain and grow returns over time. With active portfolio management oversight, the tech evaluates some 1,000 U.S.-based companies each trading day, parsing through more than 100,000 data points, the release noted.

The fund has a 0.35% management fee.

Desjardins debuts U.S. fixed-income ETF

Desjardins Investments Inc. has launched a new U.S. fixed-income ETF.

The Desjardins US Investment Grade Corporate Bond Index ETF (TSX: DUIG) began trading on May 19.

Currently, the fund seeks to replicate, to the extent reasonably possible, the performance of the Solactive Quarterly Select USD Investment Grade Corporate CAD Hedged TR Index.

“Under normal market conditions, the ETF will primarily invest in investment-grade corporate bonds denominated in U.S. dollars,” a release said.

The fund has a 0.15% management fee. It’s managed by Desjardins Global Asset Management Inc.

Manulife launches mutual fund versions of its all-in-one ETF lineup

Manulife Investments has launched mutual fund versions of its existing “Manulife All-in-One ETFs” lineup, offering investors another way to get access to the same multi-asset strategies.

The Manulife Conservative ETF Portfolio Fund, Manulife Balanced ETF Portfolio Fund and Manulife Growth ETF Portfolio Fund are designed for a range of risk profiles.

CIBC GAM expands its ETF lineup

CIBC Global Asset Management (CIBC GAM) is expanding its product offerings with the launch of six new ETFs, including four growth-focused equity funds developed with Morgan Stanley Investment Management’s Counterpoint Global team and two actively managed bond funds.

The new funds from CIBC GAM and Counterpoint Global include:

• Counterpoint Global CIBC Global Permanence ETF (TSX: CCGP), which has a 0.6% management fee
• Counterpoint Global CIBC International Permanence ETF (TSX: CCIP), which has a 0.6% management fee
• Counterpoint Global CIBC U.S. Large Cap Growth ETF (TSX: CCUL), which has a 0.5% management fee
• Counterpoint Global CIBC U.S. Small Cap Growth ETF (TSX: CCUS), which has a 0.6% management fee

And the new bond funds, which are designed to be core fixed-income holdings and are diversified across a range of sectors and maturities, include:

• CIBC Short-Term Income Fund – ETF Class (Cboe: CSTB), which has a 0.17% management fee
• CIBC Canadian Bond Fund – ETF Class (Cboe: CCBA), which has a 0.2% management fee

The funds began trading on May 28.

Not-for-profit mutual fund provider rolls out new products

Not-for-profit Montreal-based mutual fund company FÉRIQUE Fund Management has debuted four new products.

This includes the FÉRIQUE ETF Moderate+ Portfolio, FÉRIQUE ETF Balanced Portfolio, FÉRIQUE ETF Growth+ Portfolio and FÉRIQUE ETF 100% Equity Portfolio. The mutual funds began trading on Monday.

They’re structured as funds of funds and provide exposure to Canadian and foreign fixed-income securities, Canadian and foreign equities, along with money market instruments, through ETFs selected by FÉRIQUE Fund Management.

The four portfolios range in equity and fixed-income allocation (from 60% fixed income, 40% equities to solely equity exposure) in order to meet different investor risk profiles.

Founded in 1999, FÉRIQUE serves engineering professionals and their families. As of April 30, the not-for-profit company offers 22 mutual funds with nearly $5.3 billion in assets.

Lower fees

Some asset managers have also announced fee reductions.

On May 20, Capital Group Canada announced that it’s lowering its management fees for most of its investment funds on July 1.

The new management fee rates will be applied to seven mutual funds and two ETFs, with fee reductions ranging between 10 and 24 basis points. More details are available here.

The changes will apply to 90% of the firm’s mutual fund and ETF assets under management, said Rick Headrick, president of Capital Group Canada, in a release.

BMO Investments Inc., for its part, has announced fee reductions and risk rating changes for certain BMO mutual funds.

It said it’s reducing the management and administration fees for select series of the BMO Global Dividend Fund and the management fees and operating expenses for select series of the BMO International Equity Fund,

Meanwhile, the risk rating changes affect the BMO Ascent Income Portfolio, BMO Canadian Banks ETF Fund, BMO Canadian Small Cap Equity Fund and BMO Equity Growth ETF Portfolio. A full breakdown of BMO’s fund changes is available here.

Fund management changes

In other product news, a couple of asset managers have announced changes in the portfolio management of their funds.

Following his appointment as chief economist of iA Financial Group, Sébastien McMahon will no longer serve as portfolio manager on iA Clarington Investments Inc. (iA Clarington) funds managed by the iA Global Asset Management Inc. asset allocation team. A list of impacted funds is available here.

Separately, iA Clarington has announced that Steven Kim, portfolio manager with QV Investors Inc. and lead portfolio manager for the IA Clarington QV Canadian Small Cap Fund and IA Clarington QV Canadian Small Cap Class, will be leaving QV Investors on July 3. Amit Shah, portfolio manager with QV Investors, has taken over as the lead portfolio manager for the funds as of May 15.

The iGAN Investment Fund I, LP has also undergone a change in management.

As of May 21, AGP Ltd. is taking over as the general partner of the fund from iGAN Management I, LP. AGP is indirectly wholly owned and controlled by an affiliate of AGP7, BV, which owns roughly 99.6% of the limited partnership interests of the fund. There will be no impact to the ongoing operations of the fund and its investments as a result.

According to private capital market data provider PitchBook, the iGAN Investment Fund I, LP is a 2017 vintage early-stage venture capital fund that targets the health care, digital health and AI and machine learning sectors in Canada.