Desjardins Investments Revamps Mutual Fund Approach
Desjardins Investments Updates Mutual Fund Lineup
Desjardins Investments Inc. (DI), the manager behind the Desjardins Funds, has recently announced significant updates to their mutual fund range. These updates include the replacement of a portfolio sub-manager and revisions to investment strategies specifically concerning the Desjardins Global Corporate Bond Fund and the Desjardins Sustainable Global Corporate Bond Fund.
Overview of Changes in the Mutual Fund Lineup
Through regular assessments, DI ensures that its funds align with the evolving needs of financial advisors and investors. The current changes reflect an effort to enhance the performance and adaptability of the funds under management.
Replacement of the Portfolio Sub-Manager
DI has decided to replace the existing portfolio sub-manager with Amundi Canada Inc. and Amundi (UK) Limited, who will now share the responsibility for managing the assets of both corporate bond funds. This change is viewed as a positive step towards improving investment efficiency and responding effectively to market conditions.
Amundi's Role and Strategy
Amundi, a well-regarded name in investment management, focuses on securities and derivatives with its Canadian and UK branches. Their approach will incorporate dynamic asset allocation based on macroeconomic data and bottom-up fundamentals, allowing for a balanced examination of credit market risks and specific issuer vulnerabilities.
Adjustments to Investment Strategies
The investment strategies for the Funds are set to undergo modifications that align with Amundi's new mandate and philosophy. Notably, the maximum exposure to emerging markets and high-yield bonds will be reduced to 10%, down from 20%. Despite these changes, the fundamental objectives and risk ratings of the Funds will remain unchanged.
About Amundi and Its Operations
Amundi operates out of major financial hubs and provides crucial investment management services. The firm is dedicated to enhancing investment strategies for their clientele, specifically focusing on fixed-income securities and emerging markets, making them an asset for DI's updated offerings.
Desjardins Investments: An Entity of Growth
As a major player in Canada's investment landscape, Desjardins Investments Inc. manages approximately $44.6 billion in assets. The firm is committed to offering a diverse portfolio of funds while also advancing responsible investment practices across the country, emphasizing their role as a leader in the financial sector.
Commitment to Responsible Investing
Desjardins emphasizes the significance of responsible investing and sustainability, reflected in their various funds that meet the increasing demand for ethical investing solutions. Their approach not only addresses financial goals but also considers societal and environmental impacts, thereby aligning with the values of many contemporary investors.
Significance of the Updates
The strategic changes are expected to take effect shortly, on or around a specified date in the upcoming months. With Amundi at the helm of managing the corporate bond funds, investors can look forward to refined management and improved resource allocation. The intention is to maximize returns while maintaining a focus on relative risk.
Frequently Asked Questions
What changes has Desjardins Investments made to its mutual fund lineup?
Desjardins Investments has replaced the sub-manager of certain funds and revised their investment strategies to better suit market demands.
Who is the new sub-manager for the corporate bond funds?
Amundi Canada Inc. and Amundi (UK) Limited will be jointly managing the portfolio assets of the funds.
How does the strategy change affect exposure to certain securities?
The maximum exposure to emerging market securities and high-yield bonds will decrease to 10% from the previous limit of 20%.
Will the risk ratings of the Funds change?
No, the fundamental investment objectives and risk ratings of each Fund will remain unchanged after the updates.
What is the primary goal of these changes?
The main objective of the changes is to enhance fund performance and better align with the evolving financial environment.
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