Evolve launches actively managed bond ETF on NEO

Apr 11th, 2018 | By | Category: Fixed Income

Evolve Funds has launched the Evolve Active Core Fixed Income ETF (FIXD CN) on the Canadian Aequitas NEO Exchange.  

Raj Lala, President and CEO of Evolve ETFs

Raj Lala, president and CEO of Evolve ETFs.

The actively managed fund, sub-advised by Foyston, Gordon & Payne, invests primarily in high-quality domestic fixed income securities. It seeks to provide a stable rate of return, primarily through producing income and, to a lesser extent, through capital appreciation.

The fund may also invest a small portion of its assets in international fixed income securities, emerging market debt, preferred shares, convertible bonds and non-investment grade bonds in an effort to enhance returns.

The fund has a management expense ratio (MER) of 0.60% and is currently yielding 3.90% (as at 9 April 2018).

It is currently exposed almost exclusively to Canada at 98%, with the US making up the additional 2%. The Evolve Active Canadian Preferred Share ETF is the fund’s largest holding at 10.0%, followed by Province of Ontario at 4.4% and Canada Housing Trust No. 1 at 3.9%. There are 68 holdings in total.  

“We are excited to partner with Foyston, Gordon & Payne and the NEO Exchange in bringing this actively managed fixed income ETF to the Canadian market,” said Raj Lala, president and CEO of Evolve ETFs. “In our effort to continue providing best-in-class investment solutions, the Evolve Active Core Fixed Income ETF addresses investors’ need for fixed income strategies which help mitigate market risk and lower volatility in their investment portfolios. We are also looking forward to building our relationship with NEO.”

Jos Schmitt, president and CEO, NEO, added, “We are pleased to partner with Evolve ETFs, the tenth and newest ETF provider to launch products on NEO. Today’s launch comes almost exactly two years after the launch of our very first ETF listing. The rapid uptake of our exchange in a relatively short time is evidence that the industry needed a national exchange driven by fairness, liquidity and transparency, and a listing venue focused on the best interests of investors. Like Evolve ETFs, we are committed to transparency, innovation, delivering value to our respective clients, and we look forward to continued growth in the coming years.”

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