Desjardins Global Asset Management has launched a family of four "smart beta" mutual funds.
These hybrid funds aim to outperform the market while still offering the efficiency and transparency associated with benchmark indices. Desjardins first began offering strategic beta management in 2008 to meet the needs of institutional investors, and has now rolled out four retail products:
- The Desjardins IBrix Canadian High Dividend Equity Fund
- The Desjardins IBrix Canadian Equity Focus Fund
- The Desjardins IBrix Low Volatility Global Equity Fund
- The Desjardins IBrix Global Equity Focus Fund
Nicolas Richard, Vice-President of Investment Strategies at Desjardins Global Asset Management, says there are three components to the funds' investment approach.
“First, to limit the risk of overweighting overvalued securities, Desjardins Global Asset Management builds its portfolios independent of the market capitalization that indices have traditionally been based on,” he explains. “Next, the portfolio manager identifies the specific characteristics deemed to be long-term sources of value or that meet the investor's needs, such as high dividend payments or environmental criteria. Finally, the portfolio construction process maximizes efficiency.”