The Desjardins Group has created four new mutual funds and one new portfolio. The company says it is introducing the products in response to market volatility, a weak Canadian dollar, and stagnant interest rates.
The Desjardins American Equity Growth Currency Neutral Fund invests in American companies using Canadian dollars, which Desjardins says will help to minimize the effects of exchange rates on investment returns. The fund has been assigned a volatility risk rating of "medium" and is suitable for those who want long-term capital appreciation and wish to own U.S. equities while limiting the effect of currency fluctuations.
Global economic diversity
The Desjardins IBrix Global Bond Fund uses global economic diversity to increase income potential. Desjardins has rated the volatility of this fund as "low" and says it is suited to investors who have a low risk tolerance and want a fund that invests in global government and corporate bonds, and who would like to both earn income and achieve some long-term capital appreciation.
The Desjardins IBrix Low Volatility Emerging Markets Fund invests in companies that are located in or do business with emerging markets, while seeking to minimize the portfolio’s volatility. Despite the fund's name, Desjardins has rated the volatility of this fund as "high" and says it is appropriate for investors who have a high risk tolerance. It is suited to those who are looking for capital appreciation and want to own a basic emerging markets corporate equity fund.
The Desjardins Canadian Preferred Share Fund provides Canadian dividend income and as such is best suited to those investing outside of their registered savings plans. Desjardins has rated the volatility of this fund as "low to medium" and says it is meant for dividend investors who would also like to have some capital appreciation.
For all four mutual funds there is a $1000 minimum initial investment requirement and a $25 minimum for subsequent fund purchases.
Finally, the Melodia 100% Equity Growth Portfolio is meant for investors who want long-term growth. Desjardins says it is suited to those who would like an all-in one solution that will allow them to invest across a number of asset classes. This portfolio offers exposure to Canadian, U.S., and international markets and has a "medium" volatility rating. There is a $500 minimum initial investment requirement and a $25 minimum for subsequent purchases.
"The four new funds and the portfolio we are launching give advisors a wider range of options so they can better meet the needs of their members and clients who want more personalized investment solutions," comments Éric Landry, vice-president of investment solutions at Desjardins Wealth Management. "Given the market volatility we are seeing, the low Canadian dollar and stagnant interest rates, investors should take advantage of their advisors guidance to optimize their investment strategies so they can plan for the future."