CIBC rolls out two actively managed global equity ETFs on TSX

Jul 28th, 2020 | By | Category: Equities

CIBC Asset Management has launched two new ETFs in Canada providing investors with actively managed strategies focused on global and global ex-North America equity markets.

David Scandiffio, President and CEO, CIBC Asset Management

David Scandiffio, President and CEO, CIBC Asset Management.

The CIBC Global Growth ETF (CGLO CN) and CIBC International Equity ETF (CINT CN) have listed on the Toronto Stock Exchange.

Each fund comes with a management fee of 0.85% and makes distributions on an annual basis.

David Scandiffio, President and CEO, CIBC Asset Management, said, “Diversification across global markets is essential for investors’ portfolios, and we are pleased to offer active ETF solutions to meet these needs.”

Each ETF gains its exposure by investing primarily in units of mutual funds that are issued by CIBC affiliate Renaissance Investments and managed by Walter Scott & Partners, an Edinburgh-based global investment manager.

The ETFs invest in share classes of the underlying mutual funds that have no operating expenses so investors will only be charged the management fees that are applicable to the ETFs.

The CIBC Global Growth ETF invests in the Renaissance Global Growth Fund which seeks long-term capital growth by selecting companies from around the world that are considered to have attractive valuations and strong prospects for earnings growth. Emphasis will be given to large- and mid-cap common stocks, while the fund may also invest in securities that are convertible into equities.

Meanwhile, the CIBC International Equity ETF invests in the Renaissance International Equity Fund which also seeks long-term capital growth but selects securities from Europe, the Far East, and the Pacific Rim. The strategy uses a bottom-up approach to identify growth companies that are undervalued relative to their long-term cash earnings potential, have the potential for significant business improvement, are financially sound, and possess sufficient liquidity.

The funds are CIBC’s first actively managed equity ETFs. The firm, which made its ETF debut in January 2019, also has three actively managed fixed income ETFs, offering access to global aggregate, Canadian corporate, and Canadian floating rate investment strategies, as well as three smart beta equity ETFs that provide multifactor exposure to Canadian or US equities.

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