Montreal, September 2, 2020 - Desjardins Investments Inc. ("DI"), the manager of the Desjardins Funds, today announced a number of changes to its mutual funds. The changes, described in detail below, include fund name change, portfolio sub-manager appointments, investment strategies change and fee reductions. DI regularly reviews its mutual fund's offer to ensure they continue to meet the evolving investment needs of financial advisors and investors.
(New) Global balanced growth investment strategy
The existing Desjardins Tactical Balanced Fund will be renamed Desjardins Global Balanced Growth Fund effective October 13, 2020 to better reflect its new mandate and investment strategy.
Wellington Management will become the fund's new portfolio sub-manager effective October 13, 2020. With over USD 1.1 trillion in client assets under management as of 30 June 2020, it is one of the world's largest independent investment management firms. With multi-asset investors in Asia, Europe, and the US, Wellington Management brings diverse perspectives to investment research with more than 100 multi-asset investment professionals, including specialist portfolio managers and analysts.
"Successful multi-asset investing is not just a function of capabilities, it's about culture. We believe in the power of sharing and collaboration as this can deliver a constant flow of innovative and differentiated investment ideas from around the world", said Peter Wilke, Managing Director & Multi-Asset Portfolio Manager at Wellington Management. "We believe successful multi-asset investing is a function of two major skills, sourcing unique insights from all asset classes and combining them effectively in a well-diversified portfolio".
"Wellington Management is a highly respected global investment manager, and Desjardins is proud to expand our relationship. Wellington's multi-asset team has also been managing the Desjardins Global Balanced Strategic Income Fund since 2016", said Sébastien Vallée, General Manager, Investment Solutions Development and Management at DI.
The investment strategy of the Desjardins Global Balanced Growth Fund will be amended to reflect the new mandate. Key investment characteristics include the following:
- dynamic multi-asset diversified growth strategy with a long-term investment horizon
- 60% equity/40% fixed income target between core growth assets and thematic allocations with flexibility to adjust as market environments change
- structurally diversified across sectors, regions, factors, and asset types with a tilt towards developed markets growth
- leverages the breadth and depth of Wellington Management resources to generate attractive investment ideas
Desjardins Canadian Equity Income Fund
Desjardins Global Asset Management ("DGAM") will become the sole fund's portfolio manager effective October 13, 2020. The investment strategy of the Fund will be amended to reflect the new investment approach selecting dividend-paying Canadian equities while maximising risk-adjusted returns and utilizing fundamental analysis integrating ESG factors. There are no changes to its investment objective.
Management fee reductions for 39 Desjardins Funds
DI announced that it will be reducing management fees by up to 20 basis points for some unit classes of 39 Desjardins Funds, effective October 1, 2020. These changes reflect DI's commitment to offering competitively priced actively managed investment funds with access to world-class portfolio managers.
Here's a list of the Desjardins Funds unit classes affected:
Trailing commissions changes
DI announced that it will be making changes to the percentages of the trailing commissions by up to 5 basis points for some unit classes of 3 SocieTerra Portfolios, as follows:
About Wellington Management
Tracing its history to 1928, Wellington Management is one of the world's largest independent investment management firms, serving as a trusted investment adviser to more than 2,200 institutional clients and mutual fund sponsors in 60 countries. Wellington had over US$1 trillion of client assets under management as of 30 June 2020. To learn more, please visit wellington.com and/or its Canadian client site.
Desjardins Funds are not guaranteed, their value fluctuates frequently and their past performance is not indicative of their future returns. Commissions, trailing commissions, management fees and expenses may all be associated with mutual fund investments. Please read the prospectus before investing. Desjardins Funds are offered by registered dealers