Vanguard ETFs form the equity core, while NEI keeps every investment decision on the portfolios
NEI Investments has launched three single-ticket ETF portfolios carrying management fees of 0.15 percent on Series F and ETF Series units, pairing Vanguard equity ETFs with NEI’s actively managed fixed income strategies.
NEI’s advisor product guide dated October 13 lists a management fee of 1.15 percent for Series A units.
An administration fee of 0.15 percent applies across all three series. Series A includes a 1.00 percent advisor-compensation structure. The guide does not state a total MER.
The portfolios trade as NECP for the NEI Conservative Income ETF Portfolio, NEBP for the NEI Balanced ETF Portfolio, and NEGP for the NEI Growth ETF Portfolio. Each offers Series A, Series F and ETF Series units.
The mutual fund series carry a minimum initial investment of $500.
Target allocations are approximately 40 percent equity and 60 percent fixed income for Conservative Income, approximately 60/40 for Balanced, and approximately 85/15 for Growth.
Each portfolio operates within defined ranges measured at the time of purchase or allocation. Fixed income and money market ranges run 55 to 65 percent for Conservative Income, 35 to 45 percent for Balanced, and 10 to 20 percent for Growth, the guide states.
Conservative Income pays a 4 percent fixed annual distribution rate monthly. Balanced and Growth pay quarterly variable distributions. All three carry a low-to-medium risk rating, with CIFSC categories of Global Fixed Income Balanced, Global Neutral Balanced, and Global Equity Balanced respectively.
Each portfolio holds approximately six to 10 underlying positions.
The guide states the portfolios invest exclusively in Vanguard-managed equity and fixed income ETFs and NEI-managed funds, and will minimise exposure to sub-asset classes and actively managed equities to keep deviation from the benchmarks low.
It does not name the individual Vanguard ETFs used.
Vanguard Investments Canada Inc. does not manage, sponsor, endorse, or make investment decisions for the portfolios, and is not responsible for their management, operation, or performance.
NEI remains portfolio manager and is responsible for all investment decisions, including setting the strategic asset allocation.
The portfolios may reference certain Vanguard trademarks under licence.
