iA Clarington launches three bond ETFs on TSX

Oct 23rd, 2018 | By | Category: Fixed Income

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iA Clarington Investments has launched ETF share classes on Toronto Stock Exchange for three actively managed bond strategies previously only available in mutual fund format.

Eric Frape, Senior Vice-President, Product & Investments, iA Clarington.

Eric Frape, Senior Vice-President, Product & Investments, iA Clarington.

“With the launch of Active ETF Series, three of iA Clarington’s differentiated, high-conviction fixed income solutions are now available in an attractively priced exchange-traded investment vehicle,” said Eric Frape, Senior Vice-President, Product & Investments, iA Clarington.

The IA Clarington Core Plus Bond Fund (ICPB CN) seeks to balance income and long-term capital growth while actively mitigating the effects of interest rate fluctuations. It invests in government bonds, investment grade bonds and high-yield bonds, as well as other income-producing securities, including asset-backed securities and senior floating-rate loans.

The fund primarily holds investment-grade issues but may seek enhanced yield potential from high-yield exposure up to a quarter of the fund’s weight.

The manager applies an investment process that considers macro factors such as economic output, inflation and interest rates and bottom-up fundamentals such as credit risk, cash-flow generation, management strength and franchise value.

The ETF comes with management fees of 0.50%.

The IA Clarington Global Bond Fund (IGLB CN), sub-advised by PineBridge Investments, seeks to provide income and some capital appreciation by investing in fixed income securities around the world.

The fund offers an unconstrained strategy that will invest across multiple asset classes, sectors, regions, countries and currencies for greater total return potential.

PineBridge portfolio managers use a combination of top-down and bottom-up analysis to select constituents they believe will realize their pricing potential over nine to eighteen months.

The management fee for the ETF is 0.70%.

The IA Clarington Emerging Markets Bond Fund (IEMB CN), also sub-advised by PineBridge, seeks to provide income long-term capital appreciation by investing in emerging market sovereign and corporate bonds.

PineBridge utilizes a top-down approach that considers multiple macroeconomic scenarios to produce return probabilities across asset classes. This is combined with a bottom-up analysis of individual securities including USD sovereign bonds, local currency bonds, and corporate bonds.

The managers then produce an asset allocation while constraining the weight of any asset class to within 15% of its weight in the fund’s benchmark – an equally weighted combination of the JP Morgan EMBI Global Diversified Index, JP Morgan GBI EM Global Diversified Index, and CEMBI Broad Diversified Index.

The fund’s management fee is 0.80%.

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