Guardian Capital LP is making waves in the investment world with the launch of two new actively managed ETFs on CBOE Canada: the Guardian i3 International Quality Growth Fund (GIQI) and the Guardian Strategic Income Fund (GSIF). These innovative funds provide investors a cost-effective route to replicate the performance of existing mutual funds. Let’s dive into how these ETFs work and why they could be a perfect addition to your investment portfolio.
Understanding the ETFs: How They Work
Guardian i3 International Quality Growth Fund (GIQI)
The Guardian i3 International Quality Growth Fund (GIQI) focuses on growing your wealth over the long term. It invests primarily in well-established mid- to large-sized companies outside of North America.
- Diversification: GIQI spreads its investments across various sectors and regions. This reduces risk and offers a balanced approach.
- Quality Over Quantity: The goal here is to identify high-quality companies with strong growth potential rather than simply riding market trends.
As of August 2024, GIQI’s highest sector allocations include:
- Technology: 22.5%
- Financials: 17.6%
- Healthcare: 16%
- Industrials: 14.5%
- Consumer Discretionary: 14%
Country Allocations:
- France: 21.6%
- Germany: 18%
- Netherlands: 13%
- UK: 9.4%
- Japan: 8.7%
The fund’s top 10 holdings account for a hefty 57% of its assets, featuring names like Novo Nordisk (7.4%), ASML Holdings (6.7%), and Schneider Electric (6.5%). These holdings are subject to change, so staying updated is key.
Guardian Strategic Income Fund (GSIF)
The Guardian Strategic Income Fund (GSIF) is tailored for those looking to grow or preserve capital while receiving steady monthly income. This fund invests in securities that can benefit from shifts in interest rates and credit spreads.
- Lower Volatility: GSIF aims for lower volatility and correlation with traditional equity and fixed-income markets, making it an excellent option for portfolio diversification.
- Adaptable Strategy: The fund’s flexible approach allows it to respond to yield curve and credit spread dynamics, making it suitable for income-seeking investors.
As of August 2024, GSIF’s holdings include:
- US 5-Year Note: 21%
- Canadian Treasury Bill: 11%
- USDM Futures Adjustment: 5%
- US 10-Year Note: 4.7%
Why You Should Consider These ETFs
Investing in GIQI and GSIF offers multiple benefits:
For GIQI Investors:
- Quality and Growth: GIQI targets factors historically linked to superior risk-adjusted returns over the last 30 years.
- Data-Driven Insights: By utilising big data and machine learning, GIQI predicts sustainable earnings growth, enhancing its alpha generation potential.
- Diversification: Exposure to innovative and disruptive companies across various geographies enhances your portfolio’s growth potential.
- Management Fees: The fund charges a competitive 0.65%, making it a cost-effective option.
For GSIF Investors:
- High Monthly Income: GSIF aims to deliver monthly income that can surpass traditional investment-grade fixed-income securities.
- Risk Mitigation: The fund focuses on capital preservation, hedging against systemic risks while maintaining low volatility.
- Flexible Security Selection: This adaptability allows the fund to adjust based on market conditions.
- Management Fees: GSIF charges 0.85% in management fees.
About Guardian Capital LP
Guardian Capital LP is a leading asset management firm under Guardian Capital Group Limited, with approximately USD $118.8 billion in total assets under management as of July 2024. Established in 1962, Guardian has built a reputation for authenticity, integrity, stability, and trustworthiness.
Guardian’s investment management activities are carried out through subsidiaries like Guardian Capital LP (GCLP), GuardCap Asset Management, Alta Capital Management, Agincourt Capital Management, and Sterling Capital Management. This extensive network allows Guardian to deliver diverse asset management solutions across global markets.
Conclusion: Your Next Investment Move
With the launch of GIQI and GSIF, Guardian Capital LP is offering investors innovative and strategic options to grow wealth and income. Whether you’re looking for long-term growth through quality investments or steady income with lower volatility, these ETFs could fit well in your portfolio.
Explore these options today and make informed decisions for a financially secure future.
