The new fund on the Cboe Canada exchange marks an expansion of the firm's ETF focus
AGF Investments has announced the launch of a new actively managed income fund which comes as a mutual fund with an ETF series.
The new AGF Enhanced U.S. Equity Income Fund offers “exposure to a diversified portfolio of dividend-paying U.S. equity securities combined with an actively managed option writing strategy that seeks to provide enhanced income potential and mitigate volatility.” It will pay a tax-efficient monthly distribution and has a medium risk rating.
The firm has also signalled that it intends to add ETF series options to some of its existing mutual funds – AGF Total Return Bond Fund, AGF Global Real Assets Fund and AGF U.S. Small Mid Cap Fund – as a part of plans to expand its ETF offering in Canada.
“This fund seeks to provide investors long-term capital appreciation while mitigating volatility and generating consistent income through the use of a dynamic option overlay strategy,” said Karrie Van Belle, chief marketing & innovation officer, AGF Investments.
“Further, as we take a more vehicle agnostic approach, this is the first in a series of strategies we expect to launch, allowing investors to access our capabilities in a mutual fund with ETF series.”
Return to Cboe
The AGF Enhanced U.S. Equity Income Fund also sees the firm’s return to Cboe which acquired the NEO Exchange last year and now operates as Cboe Canada. The fund is listed with the ticker AENU.
“We are always honoured to welcome an ETF issuer back to Cboe Canada. AGF’s return confirms the value of the exceptional support and enhanced reach we offer our issuers as we continue to bring more choice and innovation to investors and the Canadian ETF market,” commented Jos Schmitt, President & CEO of Cboe Canada.
