Arrow Capital Management has launched its second actively managed ETF on Toronto Stock Exchange (TSX).
The fund provides multi-asset exposure with up to half the portfolio’s weight allowed in foreign securities.
The Exemplar Growth and Income Fund (EGIF CN) offers investors a balance of growth and income, making strategic asset class shifts based on where the fund’s managers believe the best opportunities exist.
It will typically invest in equities and fixed income securities, primarily through the purchasing of other funds including ETFs, with up to half the portfolio exposure allowed in foreign securities.
The ETF aims to provide capital preservation during times of market turmoil through the deployment of various hedging strategies including short selling and holding cash.
It currently has approximately a quarter of its total weight in cash as well as around 5% in gold exposure.
The fund comes with a management expense ratio (MER) of 1.00%.
Similar to the firm’s debut ETF launch, EGIF represents a repackaging of an existing mutual fund strategy which has been in existence since April 2015.
Since inception, the fund has provided a cumulative return of 33.8% (as of 30 June 2018), outperforming its blended benchmark which has returned 15.4% over the same period.
“We will continue to invest to expand our product line up, providing investors greater accessibility to our strategies” said Mark Purdy, managing director and chief investment officer of Arrow Capital Management. “We have entered an era where investors are looking for better access to well-structured investment solutions and this ETF fits that criteria.”
Arrow Capital launched its first ETF in December of last year: the Exemplar Investment Grade ETF (CORP CN). This fund, which is also actively managed, is aimed at investors looking to protect their portfolios during periods of rising interest rates.
The fund focuses on investment grade bonds primarily in Canada and employs a macro overlay to enhance returns and reduce volatility. The unconstrained nature of the fund allows the fund’s managers the flexibility to manage duration and mitigate risk.
CORP is slightly cheaper than EGIF with a MER of 0.80%.