Two new active funds give fixed income investment opportunities
Canadian investors are gaining further access to the BlackRock investment platform with the launch of two new exchange traded funds.
The active ETFs launched by RBC iShares offer opportunities to invest in fixed income, managed by experienced BlackRock portfolio managers.
The iShares Flexible Monthly Income ETF (XFLI, XFLI.U) invests in the BlackRock Flexible Income ETF (BINC) and the strategy will also be available hedged to the Canadian dollar with the listing of the iShares Flexible Monthly Income ETF (CAD-Hedged) (XFLX).
The funds will be managed by BlackRock’s chief investment officer of Global Fixed Income, Rick Rieder, and will seek to deliver monthly income through allocations primarily to hard-to-reach global fixed income sectors, such as high yield, emerging markets debt and securitized assets.
“Today’s investment environment presents a golden age for fixed income. Investors can achieve high yields without taking on excessive risk,” said Rieder. “By staying active, agile, and well-diversified, these ETFs aim to capture historic opportunities across fixed income markets whenever and wherever they become available.”
iShares Flexible Monthly Income ETF’s units were listed on the TSX on Thursday having closed their initial offering of units while the Canadian dollar option is expected to be listed when markets open on October 1, 2024. Management fees for both ETFs are 0.55%.
the ETFs are managed by BlackRock Asset Management Canada Limited, an indirect wholly-owned subsidiary of BlackRock, Inc.
“The launch of these ETFs brings the alpha generation capabilities of BlackRock’s global fixed income platform to Canadian investors,” said Helen Hayes, Head of iShares Canada, BlackRock. “The deep resources and specialized market insights of our Fundamental Fixed Income Team will provide investors exposure to less accessible sectors of fixed Income, further enabling opportunities to capitalize on the strong yield environment.”
