New cost-effective Mackenzie ETF seeks to offer yield-focused investors strong returns and increased diversification
TORONTO, July 25, 2019 /CNW/ - Mackenzie Investments today announced the launch of Mackenzie Emerging Markets Bond Index ETF (CAD-Hedged), a new Exchange Traded Fund (ETF), which provides Canadian investors with exposure to emerging market debt and opportunities for higher yield and better diversification in a tax-efficient manner.
The new ETF will invest primarily in U.S. denominated emerging market government bonds and government-related bonds. It has a management fee of 0.45% – the lowest among Canadian-domiciled emerging markets bond ETFs.
"Our new ETF is a strong option for investors seeking to diversify their portfolios and access the impressive growth taking place in the bond markets of emerging countries," said Michael Cooke, Senior Vice President and Head of ETFs, Mackenzie Investments. "Our prudent and measured investment approach helps minimize risk while offering investors a broad, competitively priced solution."
The initial offering of the ETF has closed and the ETF will begin trading today on the Toronto Stock Exchange, under the ticker symbol QEBH.
The attractiveness of emerging markets debt bonds in a low-yield environment
Mr. Cooke noted that emerging markets debt products are particularly attractive in a low interest rate environment as they tend to generate, on average, higher yields than returns on bond products from developed markets, including Canada.
Mackenzie's new ETF hedges foreign currency back to the Canadian dollar. It will seek to replicate the performance of the Solactive EM USD Govt & Govt Related Bond Select CAD Hedged NTR Index, offering broad diversification as compared to other comparable indices tracked by Canadian domiciled emerging ETFs.
Mackenzie Emerging Markets Bond Index ETF (CAD-Hedged) is the latest addition to the firm's comprehensive suite of Active, Strategic Beta and Traditional Index ETFs which offer investors innovative choices for building diversified portfolios. These innovative solutions cover the spectrum of investment strategies to meet the different needs of advisors and investors.
About Mackenzie Investments
Mackenzie Investments was founded in 1967 and is a leading investment management firm providing investment advisory and related services. With approximately $139 billion in assets under management as of June 30, 2019, Mackenzie Investments distributes its investment services through multiple distribution channels to both retail and institutional investors. Mackenzie Investments is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of Canada's premier financial services companies with approximately $162 billion in total assets under management as of June 30, 2019. For more information, visit mackenzieinvestments.com.
About Solactive AG
The Mackenzie Emerging Markets Bond Index ETF (CAD-Hedged) is not sponsored, promoted, sold or supported in any other manner by Solactive AG nor does Solactive AG offer any express or implicit guarantee or assurance either with regard to the results of using the Index, Index trade mark and/or the Index Price at any time or in any other respect. The Solactive EM USD Govt & Govt Related Bond Select CAD Hedged NTR Index is calculated and published by Solactive AG. Solactive AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards the Issuer, Solactive AG has no obligation to point out errors in the Index to third parties including but not limited to investors and/or financial intermediaries of the Mackenzie Emerging Markets Bond Index ETF (CAD-Hedged). Neither publication of the Index by Solactive AG nor the licensing of the Index or Index trade mark for the purpose of use in connection with the Mackenzie Emerging Markets Bond Index ETF (CAD-Hedged) constitutes a recommendation by Solactive AG to invest capital in said Mackenzie Emerging Markets Bond Index ETF (CAD-Hedged) nor does it in any way represent an assurance or opinion of Solactive AG with regard to any investment in the Mackenzie Emerging Markets Bond Index ETF (CAD-Hedged).
SOURCE Mackenzie Investments
For further information: Nini Krishnappa, Mackenzie Investments, 647-828-2553, Nini.Krishnappa@igmfinancial.com