The termination comes a few months after the fund's launch
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Excel Funds Management received a notice from Alken Asset Management announcing its intention to terminate the sub-advisory agreement in respect of two exchange-traded funds (ETF).
Early this year, Excel made its entry into the Canadian ETF space with the launch of Excel Global Balanced Asset Allocation ETF (EXGB) and Excel Global Growth Asset Allocation ETF (EXGG).
EXGB targets to achieve an annual return of 2.5% over a rolling two to three-year period with controlled volatility. It will be investing in globally listed ETFs and equity and fixed income securities.
On the other hand, EXGG aims to have a total return in excess of 5% over a rolling three to five-year period by investing in global ETFs.
"As a pioneer in the actively-managed core and speciality emerging market funds, the launch of these ETFs reaffirms our commitment to providing our investors with a diverse suite of actively managed solutions to meet their unique investment objectives," Excel Funds CEO and president Bhim Asdhir said in an earlier statement.
With these ETFs, Excel was the first Canadian fund manager to leverage the expertise and models of Alken Asset Management.
Following Alken Asset Management's notice, Excel intends to search other options for the management of the said ETFs.
Additionally, Excel Investment Counsel will take over the responsibility for overseeing the ETFs investment strategies.
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