AGF Investments (AGF) has, through AGFiQ Asset Management (AGFiQ), launched the AGFiQ Enhanced Core Global Multi-Sector Bond ETF (QGB). QGB is now trading on the Aequitas NEO Exchange with a management fee of 0.45 per cent.
“Given the current environment in fixed income and longer-term projections for interest rates, investors are looking to diversify existing bond portfolios into strategies that offer access to different areas of the market,” says Kevin McCreadie, President and Chief Investment Officer, AGF. ”While fixed income investing has its roots in mathematics, we are excited to be the first in Canada to apply quantitative factor models to the asset class, focused on better understanding and managing of risk as we seek out opportunities for total return and income across the global bond market.”
QGB utilises the expertise of AGF’s in-house quantitative investment management team – AGFiQ – and its proprietary factor and risk models to rank global bonds using factors such as growth, value, quality and risk characteristics.
QGB provides exposure to a diversified portfolio of investment grade corporate bonds, high yield corporate bonds and government bonds issued by developed and emerging market countries. Foreign currency exposure is expected to be hedged back to Canadian Dollars, which reflects an update to the investment strategy.
“While fixed income ETFs now account for close to a third of ETF assets in Canada, we are proud to launch the first Canadian ETF to use a multi-factor based approach to fixed income investing,” says Florence Narine, Senior Vice-President, Head of Product, AGF. “This ETF was designed for investors looking to gain access to global fixed income securities seeking enhanced returns with an explicit focus on risk-management.”
