Seeking to deliver higher yield from 'sweet spot' of the yield curve
Giroux and his team also manage two other ETFs – the Manulife Smart Corporate Bond ETF (CBND) and the Manulife Smart Core Bond ETF (BSKT). Both ETFs combine the same systematic and active approach as TERM and seek to match the volatility of the benchmark while delivering a higher yield. But given the market environment, TERM has seen the most interest – attracting over $600M since launch in November 2020 – as investors seek to preserve capital by reducing duration risk.
With the team having been around since 1998, and with members coming from insurance, pension fund and quant side, the model, tools, and algorithms are well developed over the past 20-plus years. Marry that with reputation and its huge footprint in the Canadian fixed-income markets, and it’s no surprise TERM benefits from opportunities in the market, either on the secondary market or from new issues. TERM offers investors the prospect of short-end optimization in these volatile times.
Sponsored by Manulife Investment Management, as of May 2022.
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