Mackenzie Investments has launched the actively managed Mackenzie Global Leadership Impact ETF (MWMN CN) on NEO Exchange in Canada. The ESG-focused fund invests primarily in companies that promote gender diversity and women’s leadership within their organizational structure.
Mackenzie Investments celebrated the fund’s launch by ringing the opening bell on NEO Exchange.
Michael Cooke, senior vice president and head of ETFs at Mackenzie Investments, commented: “Mackenzie Investments is committed to delivering products that drive positive social, environmental and governance impact. The Mackenzie Global Leadership Impact ETF provides investors with a progressive product, promoting the benefits of gender diversity.”
Sub-advised by PAX Ellevate Management, an impact investing asset manager focused on women in leadership, the ETF’s portfolio managers assess potential investments based criteria including proportional representation of women on boards of directors and the presence of women in leadership positions such CEOs and CFOs.
Investors can access the strategy for a management fee of 0.60%. The fund’s performance benchmark is the MSCI World Index.
The new ETF positions Mackenzie Investments to capture market share resulting from a growing trend towards ethical investing. According to a survey conducted by Canadian polling and market research firm Environics, 91% of Canadian investors expect to increase or maintain their exposure to socially responsible investments in the next two to three years.
The fund is Mackenzie’s second ETF to be launched on NEO, following the launch of the Mackenzie Global High Yield Fixed Income ETF (MHYB CN) in April 2017.
“We are proud to list our new socially responsible product on NEO as we expand our product suite to provide Canadians with solutions that reflect their investment values,” added Cooke. “Not only will this new ETF seek to provide long-term capital growth, it is a socially responsible investment product that risk-averse Canadians looking to invest with impact can confidently add to their portfolio.”
“We are exceptionally excited by the investment approach of Mackenzie’s new ETF because, at NEO, we readily embrace and foster female employees throughout each level of our organization,” added Jos Schmitt, president and CEO, NEO Exchange. “Like Mackenzie, we are dedicated to achieving balance and real change that will benefit companies and investors alike, and we are proud to see our partnership grow.”
The fund will compete with Evolve Funds’ North American Gender Diversity Index ETF (HERS CN) which launched on Toronto Stock Exchange in September. HERS tracks the Solactive Equileap North American Gender Equality Index, which targets North American companies that have demonstrated a commitment to gender diversity as part of their corporate social responsibility strategy. The fund has a management fee of 0.40%. It is also offered in a CAD-hedged share class under the ticker code HERS.B.
Just last month in Europe, Lyxor launched the Lyxor Gender Equality ETF (ELLE FP), Europe’s first ETF to focus on companies leading the field in gender equality. Developed in partnership with index provider Solactive, and backed by analytics powered by gender equality foundation Equileap, the fund tracks the Equileap Global Gender Equality Index and has a total expense ratio of 0.35%.