Investment firm launches new strategic beta fund

Developed in partnership with Morningstar, the fund aims for improved long-term returns at lower risk

Bridgehouse Asset Managers has announced the launch of its first product of its collaboration with Morningstar Associates, Inc., which is a unit of the industry-famous Morningstar Investment Management group.

A strategic beta fund that incorporates elements of passive and active investing through a rigorous rules-based process, the Morningstar Strategic Canadian Equity Fund “aims for improved long-term returns with a lower risk profile compared to the S&P/TSX Composite Index.” The fund is intended as a core Canadian equity solution, being offered to investors at management fee levels of 0.50% on Series F units, 0.65% on Series D units, and 1.50% on Series A units.

“The Fund’s multi-factor approach applies clear rules to stock selection,” said Carol Lynde, President & COO, Bridgehouse Asset Managers. She explained that the fund is meant to appeal to fee-conscious investors looking to build their portfolios around a core pure Canadian equity fund. “This solution is designed for investors concerned about generating alpha, reducing volatility and lowering fees.”

“Our goal is to deliver a focused portfolio of 30 to 40 companies using Morningstar, Inc.’s suite of proprietary equity ratings and exposure to diversified investment factors demonstrated to work in the Canadian equity market – such as value, quality, reasonable risk and momentum,” said Michael Keaveney, head of investment management for Morningstar Associates, Inc. in Canada.

According to Keaveney, the Canadian stocks included in the fund will be screened based on ratings proprietary to Morningstar research, such as the Morningstar Rating for Stocks, Quantitative Valuation, Quantitative Economic Moat, Quantitative Uncertainty and Quantitative Financial Health.

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