Excel Funds Management has filed the final prospectus to launch its actively managed exchange traded funds (ETFs), the Excel Global Balanced Asset Allocation ETF (EXGB) and the Excel Global Growth Asset Allocation ETF (EXGG).
Units of the ETFs have been conditionally approved for listing by the Toronto Stock Exchange (TSX) and are slated to begin trading on 17 May 2017, under the ticker symbols EXGB and EXGG.
“As a pioneer in actively-managed core and specialty emerging market funds, the launch of these ETFs reaffirms our commitment to providing our investors with a diverse suite of actively managed solutions to meet their unique investment objectives,” says Bhim D Asdhir, president and CEO of Excel Funds Management. “These first of a kind quantitative ETFs in Canada combine behavioural science and big data to facilitate the most effective asset allocation decisions.”
The Excel Global Balanced Asset Allocation ETF aims to achieve a targeted annual return of 2.5 per cent over the Bank of Canada Overnight Lending Rate over a rolling two to three-year period, before deduction of fees and expenses, while targeting portfolio volatility to, approximately, a range of 4-6 per cent.
The Excel Global Growth Asset Allocation ETF Excel Global Growth Asset Allocation ETF aims to achieve a targeted annual return in excess of 5 per cent over the Bank of Canada Overnight Lending Rate over a rolling three to five-year period, before deduction of fees and expenses, while targeting portfolio volatility to, approximately, a range of 8-9 per cent.
In addition to a positive target upside return, each of the two ETFs will also have a risk budget and will be dynamically rebalanced to ensure adherence to the defined risk and targets.
In launching its ETFs, Excel is the first Canadian fund manager to leverage the expertise and proprietary mathematical models of the London, England headquartered firm, Alken Asset Management. The firm’s subsidiary, Cabestan Quant Research, uses quantitative models to make asset allocation decisions and manage risk, differentiating it from its peers.