Canada-based asset manager Excel Funds has announced that it is to launch its first actively managed exchange-traded funds, the Excel Global Balanced Asset Allocation ETF (EXGB) and the Excel Global Growth Asset Allocation ETF (EXGG). The ETFs will begin trading on the Toronto Stock Exchange on 17 May 2017.

Bhim D. Asdhir, president & CEO of Excel Funds.

Bhim D. Asdhir, president & CEO of Excel Funds, commented: “As a pioneer in actively-managed core and specialty emerging market funds, the launch of these ETFs reaffirms our commitment to providing our investors with a diverse suite of actively managed solutions to meet their unique investment objectives. These first of a kind quantitative ETFs in Canada combine behavioral science and big data to facilitate the most effective asset allocation decisions.

The Excel Global Balanced Asset Allocation ETF aims to achieve a targeted annual return of 2.5% over the Bank of Canada Overnight Lending Rate over a rolling two to three-year period, before deduction of fees and expenses, while targeting portfolio volatility to, approximately, a range of 4-6%.

The Excel Global Growth Asset Allocation ETF Excel Global Growth Asset Allocation ETF aims to achieve a targeted annual return in excess of 5% over the Bank of Canada Overnight Lending Rate over a rolling three to five-year period, before deduction of fees and expenses, while targeting portfolio volatility to, approximately, a range of 8-9%.

In addition to a positive target upside return, each of the two ETFs will also have a risk budget and will be dynamically rebalanced to ensure adherence to the defined risk and targets.

The funds will leverage the proprietary models of London-based Alken Asset Management as well as the quantitative models of the firm’s subsidiary Cabestan Quant Research to make asset allocation decisions and manage risk.

Each ETF is expected to have a management fee of 0.60%.