iA Clarington Investments is an established investment firm within Canada and is deftly building an ETF product shelf that provides investors with foundational exposure to differing asset classes. In this ETF Issuer article, we will look at the existing ETF product offerings of iA Clarington, highlighting their diverse investment solutions and how they can be of benefit to investors.
iA Clarington Investments background
iA Clarington Investments is a wholly owned subsidiary of iA Financial (TSX:IAG) Group, one of the largest insurance and wealth management groups in Canada. iA Clarington Investment was birthed from a friendly corporate takeover, in which iA Financial Group (formerly known as Industrial Alliance Insurance and Financial Services Inc.) made a $273 million cash offer for all the issued and outstanding common shares of Clarington Corp, an independent wealth management company.
iA Clarington Investment Philosophy
iA Clarington’s investment approach is grounded in active management, as the firm believes investors are best served by having solutions that are managed with the discipline and conviction of skilled portfolio managers. Rather than having a house view or specific investment style, iA Clarington Investments believes in partnering with skilled portfolio managers who have their own unique approach to helping investors reach their goals. In identifying these managers, the firms ensure three core attributes are evident:
- Skill: Preference is given to research-driven portfolio managers who have a long track record of skilled, effective security selection and vigilant risk management.
- Conviction: Unafraid to challenge conventional wisdom, portfolio managers who have the conviction to follow through on their best investment ideas.
- Opportunity: Portfolio managers that can identify opportunities that many investors, including some professional investors, are unable to perceive.
iA Clarington’s ETF Offerings
Presently, iA Clarington has eight ETF offerings, with mandates reflecting equity, fixed income, and balanced solutions. The focus of each ETF is detailed below:
- iA Clarington Core Plus Bond Fund (Ticker: ICPB) will invest in a combination of fixed income securities including government bonds, investment grade bonds, high yield bonds, asset-backed securities and senior loans and other income-producing securities, such that the overall weighted average credit rating of the Fund’s portfolio is “BBB-” or higher.
- iA Wealth Enhanced Bond Pool Fund (Ticker: IWEB) will invest primarily in a diversified portfolio of domestic and foreign investment grade and non-investment grade fixed income securities, which may also include senior loans, non-related securities, floating rate debt instruments, asset-backed and mortgage-backed securities and private placements.
- iA Clarington Floating Rate Income Fund (Ticker: IFRF) will invest in floating rate debt instruments that pay interest, at a margin or spread above a reference base lending rate (often the London Interbank Offered Rate or LIBOR or some other benchmark rate), resulting in higher payments to investors as the benchmark interest rate increases (and lower payments if the benchmark rate decreases).
- iA Clarington Loomis Global Multisector Bond Fund (Ticker: ILGB) invests primarily in investment grade and non-investment grade fixed income securities with a focus on U.S. corporate bonds, convertible securities, foreign debt instruments, including those in emerging markets and related foreign currency transactions and U.S. government securities.
- iA Clarington Strategic Corporate Bond Fund (Ticker: ISCB) will invest primarily in fixed income securities of North American companies. Generally, investments in corporate bonds are expected to have a weighted average credit rating of between “B-” and “BBB+”.
- iA Clarington Strategic Income Fund (Ticker: ISIF) will invest primarily in Canadian equity and fixed income securities. Regarding the selection of equity securities, the manager employs a bottom-up security selection process combined with a top-down overlay to determine the risk-reward opportunity for each investment and the Fund’s overall positioning. The fund’s fixed income exposure is inclusive of bonds, debentures, notes and other obligations, whether secured or unsecured, convertible or not, issued or guaranteed by Canadian or foreign governments. Generally, investments in corporate bonds are expected to have a weighted average credit rating in a range of “B-” to “BBB+”.
- iA Clarington Loomis Global Allocation Fund (Ticker: IGAF) will invest primarily in equity and fixed income securities of global issuers, including securities of issuers located in countries with emerging securities markets. The equity portion of the portfolio in common shares, preferred shares, depository receipts, warrants, and other equity securities is deemed appropriate. The fund’s fixed income portfolio will invest in investment grade and non-investment grade debt securities issued by corporations, governments and government-related entities.
- iA Clarington Loomis Global Equity Opportunities Fund (Ticker: IGEO) will invest in equity securities of companies located anywhere in the world of any market capitalization. The manager uses a fundamental, bottom-up approach to investing and generally looks to purchase quality companies at attractive valuations with the potential to grow intrinsic value over time.
Conclusion
While iA Clarington’s ETF product line-up has a fixed income slant, the breadth of their investment offerings does provide sufficient optionality for investors seeking solutions capable of managing their wealth. For investors who are seeking ETF solutions capable of being core solutions for their portfolio, iA Clarington’s line-up would be a starting point to consider.
This content was originally published by our partners at the Canadian ETF Marketplace.