First Asset Investment Management announced July 31 that the First Asset Enhanced Government Bond ETF has begun trading on the TSX under the ticker symbol FGO. The US$ common units will trade on the TSX under the ticker symbol FGO.U.
The new ETF will primarily invest in government debt, but may also invest in other debt instruments across the credit spectrum including cash, corporate debt, and debt and credit derivatives, says the company.
The ETF's investment portfolio will be co-managed by Marret Asset Management's Barry Allan, President and Chief Investment Officer; Paul Sandhu, Vice President and Portfolio Manager and Adam Tuer, Portfolio Manager.
Capitalizing on the credit cycle phases
"The First Asset Enhanced Government Bond ETF is designed to provide investors true, active management across the duration spectrum. The key to providing our investors with a solution to capitalize on both the current and upcoming phases of the credit cycle rests on the flexibility of actively shortening the portfolio's duration in periods of rising interest rates, while also having the option to rotate to longer duration government bonds, for additional recession protection," stated Barry Allan.