Canadian asset management company, Evermore Capital Inc has launched the Evermore Retirement ETFs, a set of target date ETFs.
The Evermore Retirement ETFs have closed their respective initial offering of units and will begin trading on the Neo Exchange. The firm writes that the Evermore Retirement ETFs use a glide path approach, in which each ETF’s asset allocation gradually changes over time.
Designed to correspond to an investor’s life stage, from the beginning of their working life through their retirement, Evermore Retirement ETFs initially focus on growth and then become more conservative as the investor approaches retirement. By introducing a low-cost, accessible, and goal-based retirement investment solution, Evermore Retirement ETFs take the hassle out of deciding what to buy, sell, or when to rebalance an investor’s retirement portfolio, the firm says.
“Until now, target date funds have only been available as higher fee mutual funds, or to select Canadians through group RRSP plans, making it difficult for the average Canadian to easily invest for their retirement,” says Myron Genyk, Co-Founder and CEO of Evermore. “We wanted to close this gap and are on a mission to bring more accessibility to the market, ultimately empowering Canadians to more easily and effectively invest for retirement. We are proud to introduce Evermore Retirement ETFs to the Canadian market.”
Evermore recently commissioned leading Canadian research firm, Pollara Strategic Insights, to conduct an online survey amongst a sample of 1,000 Canadian investors aged 25 to 65 who self-direct at least some of their investments. The survey revealed an education gap in the market, with only half of Canadians understanding the benefits of ETFs. Additionally, based on the survey, many Canadians currently do not have access to a low-cost retirement solution, as they cannot access corporate pension plans, afford to hire a financial advisor, or buy high-fee products. Survey results found:
Less than half (46 per cent) of Canadian self-directed investors hold ETFs
Only about half (49 per cent) of self-directed investors say they are knowledgeable about ETFs
42 per cent of self-directed investors who are not investing in ETFs say it is because they do not know enough about ETFs
Evermore Retirement ETFs writes that it intends to simplify retirement investing using established portfolio management methodologies to best allocate between stocks and bonds and across geographies at different points in an investor’s lifecycle.