Amid waning investor demand, two firms have announced upcoming terminations of ESG product offerings.
In a release Monday, PIMCO Canada Corp. said the $23-million PIMCO Climate Bond Fund is now closed to new purchases and will be terminated on or around Aug. 28.
Per PIMCO Canada’s website, the fund “seeks to be a global climate action leader in fixed income, giving special investment consideration to long-term climate risks and opportunities, consistent with prudent investment management, while seeking optimal risk-adjusted returns.”
Investors will be able to redeem their units of the fund or switch those units for the same series of another mutual fund offered by PIMCO Canada up to the close of business on or around Aug. 28, the release noted. They will also receive a notice about the termination.
A spokesperson said the firm is closing the fund because it hasn’t grown for a few years, while noting that PIMCO Canada still offers the PIMCO ESG Income Fund in Canada.
Meanwhile, CIBC said it will de-list the ETF series of several ESG funds from Cboe Canada on or around Nov. 25, with those offerings to be terminated on or around Nov. 27.
The product offerings include the:
- CIBC Sustainable Canadian Core Plus Bond Fund – ETF Series (Cboe: CSCP)
- CIBC Sustainable Canadian Equity Fund – ETF Series (Cboe: CSCE)
- CIBC Sustainable Global Equity Fund – ETF Series (Cboe: CSGE)
- CIBC Sustainable Conservative Balanced Solution – ETF Series (Cboe: CSCB)
- CIBC Sustainable Balanced Solution – ETF Series (Cboe: CSBA)
- CIBC Sustainable Balanced Growth Solution – ETF Series (Cboe: CSBG)
In a release Thursday, CIBC said the ETF series units held by investors at the time of the termination will be subject to mandatory redemption. It added that it will send a notice in the mail to investors at least 60 days before the termination date and issue another release confirming details about the upcoming terminations.
“The ETF Series of the CIBC Sustainable Investment Solutions experienced low trading volume, and the decision was made to terminate this share class,” a spokesperson said in a statement. “CIBC Global Asset Management remains committed to offering clients the opportunity to grow their wealth in a manner that aligns with their personal values through the mutual funds and separately managed accounts of the CIBC Sustainable Investment Strategies.”
These moves follow a slew of other ESG fund terminations, which have ramped up in recent years due to several factors including a shift in investor interest toward other fund themes and categories, the politicization of ESG and a lack of confidence in ESG investing due to inconsistent and unclear ESG standards. Just last month, Franklin Templeton Canada de-listed the ETF series of the Franklin ClearBridge International Growth Fund (TSX: FCSI).
Purpose, LongPoint announce SpaceX ETF liftoff
Purpose Investments and LongPoint Asset Management Inc. have joined other Canadian asset managers in announcing the launch of products that invest in newly listed Space Exploration Technologies Corp. (SpaceX).
The Purpose SpaceX Yield Shares ETF (Cboe: SPXY) began trading on Monday. The fund offers single-stock exposure to SpaceX and seeks to generate enhanced monthly income through a diversified covered call strategy on approximately 50% of the portfolio as well as approximately 25% leverage.
SPXY is also hedged to the Canadian dollar, reducing currency risk for investors, and has a 0.4% management fee.
Purpose’s new fund is the first single-stock SpaceX ETF to be listed on Cboe Canada. Two competing single-stock SpaceX funds — Harvest SpaceX Enhanced High Income Shares ETF and SpaceX HighShares ETF — are trading on the TSX, under the ticker symbols SPXE and SXHI, respectively. Those funds also began trading earlier this week.
On the other hand, LongPoint rolled out the SavvyLong (2X) SpaceX ETF (TSX: ORBU), along with two other double-leveraged single-stock ETFs — SavvyLong (2X) AMD ETF (TSX: AMDU) and SavvyLong (2X) Micron ETF (TSX: MUU), on Wednesday.
Those funds seek to achieve daily investment results that correspond, before fees and expenses, to two times the daily return (on a percentage basis) of their respective target common stock, LongPoint said in a release. They’re also hedged to the Canadian dollar and have a 1.55% management fee.
BlackRock Canada announces fund changes
BlackRock Asset Management Canada Limited (BlackRock Canada) has announced index changes for some of its ETFs.
In a release issued Monday, it said it’s planning to switch the underlying indices of the following ETFs on or around Aug. 6:
- iShares Canadian Fundamental Index ETF (TSX: CRQ) will track the RAFI Fundamental Select Canada 100 Index, instead of the FTSE RAFI Canada Index
- iShares International Fundamental Index ETF (TSX: CIE) will track the RAFI Fundamental Select Developed ex US 1000 Index, instead of the FTSE RAFI Developed ex US 1000 Index
- iShares Japan Fundamental Index ETF (CAD-Hedged) (TSX: CJP) will track the RAFI Fundamental Select Japan 250 CAD Hedged Index, instead of the FTSE RAFI Japan Canadian Dollar Hedged Index
- iShares Emerging Markets Fundamental Index ETF (TSX: CWO) will track the RAFI Fundamental Select Emerging Markets 350 Index, instead of the FTSE RAFI Emerging Markets Index
- iShares US Fundamental Index ETF (Hedged Units) (TSX: CLU) will track the RAFI Fundamental Select US 1000 CAD Hedged Index, instead of the FTSE RAFI US 1000 Canadian Dollar Hedged Index
- iShares US Fundamental Index ETF (Non-Hedged Units) (TSX: CLU.C) will track the RAFI Fundamental Select US 1000 Index, instead of the FTSE RAFI US 1000 Index
“These changes are being made following Research Affiliates, LLC’s announcement that, effective September 2026, it will cease to provide inputs to certain indices provided by FTSE International Limited, including the indices … that the iShares ETFs (or class of units thereof) seek to replicate,” the firm said in a release.
As well, due to the index changes, “at their next scheduled rebalance, the iShares ETFs may experience higher than normal transaction costs and are expected to realize net capital gains,” BlackRock Canada added.
A sub-advisor switch
BMO Private Investment Counsel Inc. is switching the sub-advisor for one of its funds, making it the latest firm to bring a fund’s investment management responsibilities in-house.
Effective on or around Aug. 21, BMO Asset Management Inc. will replace Vontobel Asset Management, Inc. as the sub-advisor for the BMO Private U.S. Equity Portfolio.
The move follows a similar one by Global X Investments Canada Inc. to insource the sub-advisory responsibilities of two of its investment funds, the Global X Active Canadian Dividend ETF (TSX: HAL) and Global X Active Global Dividend ETF (TSX: HAZ).
Risk rating tweaks
After a review of their respective fund lineups, two firms have announced fund risk rating changes.
CIBC said it’s upping the risk rating of the CIBC Dividend Income Fund to “medium” from “low to medium.”
Separately, BlackRock Canada said it has downgraded the risk rating for the iShares US Fundamental Index ETF (Hedged Units) (TSX:CLU) to “medium” from “medium to high.” It noted that the tweak is not a direct result of the index change the fund is undergoing.
BMO partners with GreenShield for health and dental coverage
BMO Insurance partnered with GreenShield to launch health and dental insurance, the insurer announced Monday.
The policies are distributed by BMO Insurance and underwritten by GreenShield.
All plans include up to four virtual general practitioner visits per year, virtual counselling and emergency travel medical coverage for trips up to 30 days, among other services.
Depending on the plan, health coverage can include prescription drug benefits, paramedical services like massage therapy, eye exams and prescription glasses. Dental coverage can include major dental services and orthodontic coverage.
Lysander seeks new buyers for redeemed fund units
Lysander Funds Ltd. says it plans to recirculate redeemed class A units of the Canso Credit Income Fund through RBC Dominion Securities Inc. to find new buyers for the units.
“Pursuant to the recirculation agreement, RBC DS shall use commercially reasonable efforts to find purchasers for 973,491 Class A units of the Fund tendered for redemption on July 2, 2026, until 4:00 p.m. EST,” it said in a release issued Wednesday.
— With files from Jonathan Got