Market week: Unlocking ignites stock indices
Invesco revamps lineup, Sun Life renames fund, CI debuts liquid alt
The main North American stock indices posted solid gains on the week, boosted mainly by growing optimism that the restrictions on economic activity forced by the Covid-19 lockdown will gradually be lifted and that the first-quarter earnings slump will be short-lived as businesses reopen. In addition, sentiment was buoyed by early indications that the major global research push for vaccine by companies like Moderna Inc. (NSD: MRNA) could bear fruit within a year.
Ahead of the U.S. Memorial Day weekend, with U.S. markets closed on Monday, stock indices ended the week higher, with the S&P 500 Composite Index gaining 3.2% on the week, and the Nasdaq Composite Index climbing 3.4%.
Toronto’s S&P/TSX Composite Index also ended the week higher, gaining 1.9% week-over-week, as an easing of the global oil glut and the 12.7% weekly jump in the price of crude oil helped boost the S&P/TSX Capped Energy Index to a 7.1% weekly gain. A 10% slump in March retail sales with an estimate from Statistics Canada that April could be even worse held the index back from even bigger gains.
Fund news and updates
* Invesco revamps fund lineup. Invesco Canada Ltd. on May 22 proposed several changes to its mutual fund product line.
Also effective Aug. 7, Invesco plans to terminate the following funds:
- Invesco Canadian Core Plus Bond Class
- Invesco Short-Term Income Class
- Invesco Energy Class
- Invesco Resources Fund
In addition, subject to investor approval, the Invesco Indo-Pacific Fund will be the renamed Invesco Emerging Markets Fund. The investment objective and strategies will change, as will the portfolio management team, with the changes effective Aug. 21.
Two other name changes will also take place, effective June 8: Invesco Canada Money Market Fund – Series DCA Heritage will be renamed Invesco Canada Money Market Fund – Series Default and will not be available for direct purchase by investors.
* Sun Life renames funds. Sun Life Global Investments (Canada) Inc. announced on May 20 that effective June 1, 2020, Sun Life MFS International Growth Fund will be renamed Sun Life MFS International Opportunities Fund. In addition Sun Life MFS International Growth Class will be renamed Sun Life MFS International Opportunities Class. The investment objectives and strategies of the two funds will not change.
* CI debuts fourth liquid alt fund. CI Investments Inc. on May 19 launched its fourth liquid alternative fund, CI Marret Alternative Enhanced Yield Fund, which aims to provide income with low volatility over a market cycle regardless of market conditions or general market direction, while targeting low correlation to equity and traditional income. The portfolio is managed by Marret Asset Management Inc. led by President and CEO Paul Sandhu, and co-managers Adam Tuer and Adrian Prenc.
The fund is also available as an ETF trading on the Toronto Stock Exchange with the ticker symbol CMEY. Both mutual fund and ETF are available in Canadian dollar and U.S. dollar hedged versions.
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