Canada-based Mackenzie Investments has received final approval from securities regulators to launch a fixed income ETF on Aequitas NEO Exchange. The Mackenzie Global High Yield Fixed Income ETF (MHYB) will be the fifth fund in Mackenzie Investment’s series of active fixed income ETFs and is expected to begin trading on 26 April 2017.
The Mackenzie Global High Yield Fixed Income ETF will seek income and capital appreciation by investing in global high yield bonds.
Michael Cooke, senior vice president and head of ETFs at Mackenzie Investments, commented: “We continue to provide the best offerings to Canadian advisors, helping them meet the needs of their investing clients. This new ETF complements our robust and innovative fund line-up, and the active management allows investors to benefit from our deep fund management expertise, with the structural benefits not available in other investment vehicles.”
The ETF, which will pick securities from within the global high yield universe, aims to provide a steady flow of income with the potential for long-term capital growth to help meet cash-flow and investment goals. According to Mackenzie Investments, the fund’s manager will apply disciplined criteria including rigorous credit analysis, and ongoing assessment of relative and absolute valuations to help uncover the most attractive risk-adjusted opportunities within the high yield asset class.
The fund, which will have a management expense ratio of 0.60%, will be Mackenzie Investment’s first listing on NEO Exchange.
“We have been observing the efficiencies and competition NEO has brought to the Canadian ETF space and are impressed by their liquidity and top-notch execution,” said Cooke. “NEO’s exceptional support, service and depth of knowledge will play a key role in bringing this innovative product to a broader audience. We have been awaiting this launch with enthusiasm and look forward to strengthening our partnership with NEO.”
Mackenzie Investments becomes the fifth ETF provider to list on NEO. The new listing will join 13 ETFs which began trading on NEO in 2016 and 2017, bringing the total number of NEO ETF listings to 30.
“At NEO, we are dedicated to accomplishing real change that will benefit companies, investment products and investors alike. We embody the passion and patience required to innovate and enhance the Canadian capital markets, and it is clear that Mackenzie Investments shares this passion,” stated Jos Schmitt, president and CEO, NEO Exchange. “We are proud to solidify this significant partnership today as it serves to validate our innovative solutions which are levelling the playing field and ensuring the necessary liquidity required for public companies and listed products to succeed.”