Market month: Fund news and updates

Monthly fund launches, mergers and terminations, SIMA statistics

 

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Fund news

CIBC terminates CIBC 2026 investment grade bond funds

CIBC Global Asset Management on Aug. 13 announced it will terminate the CIBC 2026 Investment Grade Bond Fund and the CIBC 2026 U.S. Investment Grade Bond Fund on or about November. 27,

Effective immediately, except in limited circumstances, no further purchases of ETF Series units will be accepted. ETF Series units of the CIBC 2026 Investment Grade Bond Fund (Cboe Canada: CTBB) and the CIBC 2026 U.S. Investment Grade Bond Fund (Cboe Canada: CTUD.U) are expected to be voluntarily delisted with trading expected to end after the market close on or about November 25, 2026.

Mackenzie to merge funds

Mackenzie Investments on Aug. 7 announced the following six proposed fund mergers as part of its ongoing efforts to streamline its product shelf. The proposed mergers will be completed on a tax-deferred basis.

Mergers requiring investor approval:

• Mackenzie Ivy European Fund to merge into Mackenzie GQE International Equity Fund.
• Mackenzie Bluewater North American Equity Fund to merge into Mackenzie Bluewater US Growth Fund.
• Mackenzie Bluewater North American Balanced Fund to merge into Mackenzie Global Strategic Income Fund.
• Mackenzie Tax-Managed Global Equity Fund to merge into Mackenzie Global Dividend Fund.

If approved, the mergers are expected to be executed on or about November 13, 2026.

Mergers not requiring investor approval:

• Mackenzie Ivy International Fund to merge into Mackenzie GQE International Equity Fund.
• Mackenzie Ivy International Fund II to merge into Mackenzie GQE International Equity Fund.

No investor action is required for these two mergers, which are expected to occur on or about November 13, 2026.

BMO launches new ETF focusing on credit stress

BMO Asset Management Inc. on July 30 announced the launch of BMO Credit Stress Opportunities ETF (TSX: ZCDX), also available in USD units.

The BMO ETF seeks to provide exposure to changes in the credit conditions associated with a broad, diversified portfolio of U.S. high yield corporate issuers, while minimizing the effects of interest rate fluctuations, primarily by taking a short position on credit default index derivatives (CDX).

Currently, the fund provides such investment opportunities primarily through CDX referencing the Markit CDX North America High Yield Index. By taking a short position on CDX, the BMO ETF will pay a premium to enter into the CDX and will receive default payments under the CDX when there is a credit event. The BMO ETF may also use other derivatives such as swaps (including credit default swaps), options or other derivatives to meet its investment objectives.

The CDX and other derivatives used by the BMO ETF will reference the HY CDX Index or the individual issuers referenced in this index. These derivative positions offer opportunities to benefit from the deterioration of the creditworthiness of the referenced issuers, including the widening of credit spreads or the occurrence of credit events such as defaults.

The fund may receive payments in such circumstances and, as a consequence, may increase in value. On the other hand, if the creditworthiness of the referenced issuers improves and credit spreads narrow, the value of the CDX held by the BMO ETF may decline in value and, as a consequence, the BMO ETF may decline in value.

BMO launches 12 new mutual funds

BMO Investments Inc., on July 27 announced the following ETF-based mutual fund launches:

• BMO Asset Allocation All-Equity ETF Fund
• BMO Asset Allocation Balanced ETF Fund
• BMO Asset Allocation Conservative ETF Fund
• BMO Asset Allocation Growth ETF Fund
• BMO AAA CLO ETF Fund
• BMO Broad Commodity ETF Fund
• BMO Canadian Bank Income ETF Fund
• BMO Canadian Equity 60 ETF Fund
• BMO Core U.S. Equity ETF Fund
• BMO Discount Bond ETF Fund
• BMO Equal Weight U.S. Equity ETF Fund
• BMO Short-Term Discount Bond ETF Fund

iA Clarington launches International Multifactor Equity Fund

iA Clarington Investments Inc. on July 27 announced the launch of the IA Clarington International Multifactor Equity Fund and its sister ETF series (TSX: IIME). Managed by iA Global Asset Management Inc., the fund seeks to provide investors with access to a sophisticated quantitative approach to international equity investing.

The fund aims to deliver consistently strong performance through diversified exposure to international stocks. Key features include:

• A powerful multifactor framework that seeks to capture return potential and diversification benefits from more than 30 factors across quality, momentum, and value themes.
• Dynamic factor allocation that adjusts exposure as market leadership evolves, helping to provide a smoother investment experience across changing market environments.
• Disciplined quantitative process that removes emotion and cognitive biases from investment decisions, leveraging rigorous research and systematic portfolio construction to pursue consistent long-term outcomes.

Desjardins fund mergers and terminations

Desjardins Investments Inc. on July 23 announced a number of fund mergers and terminations.

The Desjardins Dividend Growth Fund will merge with the Desjardins Canadian Equity Income Fund after the close of business on or about November 13, 2026.

The Desjardins Target 2026 Investment Grade Bond Fund and the Desjardins Sustainable Global Balanced Fund will be terminated effective with the close of business on or about November 27, 2026.

Capital Group launches three new active non-domestic ETFs

Capital International Asset Management (Canada) Inc. on July 23 announced the launch of three new active exchange-traded funds. The three equity strategies are designed for investors looking to diversify their portfolios with non-domestic exposures including U.S., international, and developed market securities.  

• Capital Group U.S. Equity Select ETF (Canada) (TSX: CAPU) seeks long-term growth of capital and income through investments primarily in common stocks of U.S. issuers.
• Capital Group International Developed Equity Select ETF (Canada) (TSX: CAPN) aims to provide prudent growth of capital through investments primarily in equity securities of issuers in developed markets outside North America.
• Capital Group Global Developed Equity Select ETF (Canada) (TSX: CAPQ) seeks to provide prudent growth of capital through investments primarily in equity securities of issuers in developed markets.

SIMA releases June fund industry statistics

The Securities and Investment Management Association (SIMA) on July 20 announced investment fund net sales and net assets for June 2026.

Mutual fund assets totalled $2.782 trillion at the end of June, up by $45.9 billion, or 1.7%, since May. Mutual fund net sales were $5.0 billion in June.

ETF assets totalled $883.4 billion at the end of June, up $23.8 billion, or 2.8%, since May. ETF net sales were $17.5 billion in June.

June insights

• Mutual fund and ETF assets reached all-time highs in June and the third consecutive month of growth. Since March, mutual fund assets increased by $234.6 billion and ETF assets by $112.4 billion.
• Mutual funds recorded their 14th consecutive month of positive net sales. All four long-term asset classes saw inflows, led by equity funds.
• ETF net sales more than doubled the June 2025 level, with equity ETFs accounting for three-quarters of the sales.
• In the first half of 2026, mutual fund net sales were 58% higher than during the same period last year, while ETF net sales rose by 86%.

Visit the SIMA website to view the full report.

NBI announces new Canadian equity fund under SmartData brand

National Bank Investments Inc. on July 9 debuted the NBI SmartData Canadian Equity Fund and its sister ETF series (TSX: NSDC).

“By combining a systematic, data-driven approach with the expertise of our portfolio sub-advisor, we are offering an innovative way to access the Canadian market, with the flexibility of an actively managed ETF series,” said Martin Felton, Vice-President, National Sales at National Bank Investments.

The fund’s investment objective is to provide long-term capital growth by investing in securities of other mutual funds, in a portfolio mainly composed of equities of Canadian companies.

NBI acts as portfolio manager for the NBI Fund and has retained the services of Goldman Sachs Asset Management, L.P. as portfolio sub-advisor.

Madison Investments enters Canadian market with two ETFs

Madison Investments (Canada) Ltd., on July 8 announced the launch of two new actively-managed exchange-traded funds.

Madison US Mid Cap ETF (TSX: MMID) seeks long-term capital appreciation by investing primarily in or gaining exposure to equity securities of medium-capitalization companies located in the United States using a bottom-up fundamental analysis approach. The strategy focuses on high-quality companies with durable growth characteristics, supported by rigorous business model analysis and valuation discipline. The US Mid Cap Equity strategy defines mid-cap companies as those with market capitalizations between US$0.5 billion and US$70 billion.

Madison US Large Cap ETF (TSX: MLRG) aims for long-term capital appreciation by investing primarily in common stock of large-capitalization companies located in the United States using a bottom-up fundamental analysis approach. The strategy is supported by a disciplined investment process applied consistently over multiple market cycles, focusing on high-quality companies with durable growth characteristics, backed by rigorous business model analysis and valuation discipline.

Steven Carl, Chair of the Executive Committee at Madison Investments, said, “The launch of ETFs in Canada represents an important milestone for our firm and reinforces our commitment to serving Canadian investors with the same disciplined investment approach that has guided Madison Investments for decades.”

Madison Investments (Canada) Ltd. has appointed its affiliate, Madison Asset Management, LLC, as sub-advisor to the ETFs.

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The foregoing is for general information purposes only and is the opinion of the writer. No guarantee of investment performance is made or implied. It is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice.

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