Mulvihill lists new corporate bond ETF on the TSX
What's the deal? Mulvihill Capital Management has closed the initial public offering of ETF units for its Mulvihill Corporate Bond Fund, which began trading on the Toronto Stock Exchange on November 2 under the ticker CORP. The fund's size was not disclosed.
What's the endgame? CORP aims to deliver monthly distributions and the chance for modest capital gains. It does so by investing mainly in fixed-income securities issued by Canadian and US corporations.
Who's behind it? Mulvihill is a Canadian investment manager founded in 1995 that specialises in enhanced-yield equity strategies. Its six portfolio managers have more than 150 years of combined industry experience, and it serves retail, high-net-worth, and institutional clients through mutual funds, ETFs, and separately managed accounts.
Why now? Corporate-bond exposure is drawing strong demand in Canada. October ETF-flow data showed sizable inflows to investment-grade corporate funds, while major managers have expanded corporate-bond and target-maturity offerings.
The signal: CORP adds another income product to a crowded Canadian fixed-income ETF market. But with no fundraising total disclosed, it is too early to judge investor uptake or how the fund stacks up against established rivals.
Read more: stockwatch.com
Image credit: Timothy Neesam (GumshoePhotos)
