Evolve launches actively managed fixed-income ETF

Morningstar Canada 29 March, 2018 | 5:00PM

Evolve Active Core Fixed Income (symbol: FIXD), managed by Toronto-based Foyston, Gordon & Payne Inc., opened for trading today on the NEO Exchange.

Sponsored by Evolve Funds Group Inc., the exchange-traded fund has as its benchmark the FTSE TMX Canada Universe Bond Index, whose constituents are exclusively domestic investment-grade securities.

However, FGP has the flexibility to diversify outside Canada in both developed and emerging markets. And while the average credit quality of the portfolio will be in line with the ETF's benchmark, the managers may also hold high-yield and unrated securities. At the managers' discretion, holdings may also include other income-paying investments such as preferred shares, convertible bonds and senior secured loans.

"In the currently low and potentially rising interest-rate environment, the flexibility provided by this active approach should deliver significant value to a client's portfolio," Ryan Domsy, vice-president and portfolio manager, fixed income at FGP, said in a release.

The new ETF's management fee is 0.45%. In addition, Evolve charges an administration fee of 0.15% that covers most expenses.

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