Anthropic PBC has yet to launch its highly anticipated initial public offering (IPO), but Ninepoint Partners LP and LongPoint Asset Management Inc. are wasting no time trying to get ETFs that invest in the AI company to market.
Ninepoint announced on Friday that it’s filed a preliminary prospectus to launch the Ninepoint Anthropic HighShares ETF, once the AI startup behind the popular Claude chatbot goes public.
Though LongPoint hasn’t made an official announcement, the SEDAR+ database of filings shows that the company filed a preliminary prospectus earlier this month to launch the SavvyLong (2X) Anthropic ETF.
The proposed Ninepoint fund would seek to provide investors with long-term capital appreciation and high monthly cash distributions.
In an effort to achieve this objective, that fund would hold up to 100% of its assets in common shares of Anthropic and write covered call options on up to 50% of the holdings, with the covered call strategy reviewed monthly for “cash-flow sustainability,” a release said. The fund would also employ cash borrowing of up to 33% of its unlevered net asset value, the release noted.
If approved by securities regulators, the Ninepoint fund would be listed on the TSX under the ticker symbol ANHI and have a 0.29% management fee.
Meanwhile, the proposed LongPoint fund would seek to deliver daily investment results that correspond, before fees and expenses, to two times the daily return (on a percentage basis) of the common stock of Anthropic.
If approved, that ETF would be listed on the TSX under the ticker symbol ANTU and have a 1.55% management fee.
On June 1, Anthropic said it submitted its confidential S-1 filing with the U.S. Securities and Exchange Commission (SEC), officially setting the stage for it to become a publicly traded company.
As they did with SpaceX before it went public, it’s likely that a slew of Canadian asset managers will file prospectuses to launch products providing investors with exposure to Anthropic. Ninepoint and LongPoint were among the first asset managers to introduce SpaceX ETFs in Canada, while CIBC was the first to launch a Canadian Depository Receipt that invests in SpaceX.
OpenAI’s anticipated mega-IPO is the next one expected to cause waves in the global asset management industry. On June 8, the company announced that it “recently” submitted a confidential S-1 filing with the SEC but hadn’t decided on when to take the company behind ChatGPT public.
“[I]t may be a while because there are things we want to do that are likely easier as a private company,” OpenAI said in a statement. “But it’s a complicated set of tradeoffs and this gives us the option to go public sooner if that ends up being best.”
NBI introduces a batch of new funds
National Bank Investments Inc. (NBI) has added a batch of new funds to its lineup, including five new ETFs designed to function as core portfolio building blocks, and one mutual fund with a focus on sustainability.
Announced Tuesday, the new funds are:
- NBI Conservative ETF Portfolio (TSX: NCNS), which seeks to deliver “a high level” of current income and some long-term capital appreciation, a release said.
- NBI Balanced ETF Portfolio (TSX: NBLD), which seeks to ensure current income and long-term capital appreciation.
- NBI Growth ETF Portfolio (TSX: NGRW), which seeks to deliver long-term capital appreciation and “some” current income.
- NBI Equity ETF Portfolio (TSX: NEQT), which seeks to deliver long-term capital appreciation.
- NBI Thematic Rotation ETF (TSX: NTHM), which seeks to generate long-term capital growth by replicating, to the extent possible and before fees and expenses, the performance of a thematic rotation global equity index. It will aim to achieve this by primarily investing directly or indirectly in equity securities of corporations from around the world.
- NBI Sustainable Systematic World Equity Fund (available in advisor and F series units), which seeks to provide long-term capital growth “while following a sustainable approach to investing,” the release said. It primarily invests directly or indirectly in equity securities of companies located in developed markets around the world that are selected using quantitative models.
According to the release, the NBI ETF Portfolios invest primarily in a diverse mix of ETFs and in ETF series of mutual funds that invest in fixed-income and equity securities. They each have a 0.35% management fee.
NCNS, NBLD and NGRW have a low to medium risk rating, while NEQT has a medium risk rating.
The NBI Thematic Rotation ETF has a 0.55% management fee and a medium risk rating.
The NBI Sustainable Systematic World Equity Fund has a 1.4% management fee for its advisor series units, and a 0.4% management fee for its F series units. Both series also have a 0.1% administration fee.
“We’re excited to expand our offering with solutions that combine innovation, simplicity, and practical portfolio building blocks for every investor,” said Martin Felton, vice-president, national sales with NBI, in the release.
Mulvihill rolls out a Canadian bank ETF
Mulvihill Capital Management Inc. has rolled out a new ETF that invests in Canada’s big banks.
The Mulvihill Canadian Bank ETF (TSX: MBNK) began trading on Tuesday.
It seeks to provide investors with long-term capital appreciation through exposure primarily to the common shares of the Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada and Toronto-Dominion Bank.
The ETF also may employ a covered call strategy on a portion of the securities in its portfolio to generate additional income, a release said.
The fund has a 0.65% management fee and medium to high risk rating.
Hamilton introduces new bitcoin ETF
Hamilton Capital Partners Inc. (Hamilton ETFs) has introduced a new actively managed bitcoin ETF that employs options and modest leverage.
The Hamilton Enhanced Bitcoin DayMAX ETF (Cboe: BDAY) began trading on Thursday.
According to a release, the fund “seeks to deliver attractive income while providing exposure primarily to bitcoin. To supplement income earned from its holdings, mitigate risk and reduce volatility, BDAY employs an actively managed, primarily ultra-short-term, option strategy and employs modest 25% leverage.”
BDAY is the latest addition to Hamilton ETFs’ zero day to expiration (0DTE) options fund lineup. 0DTE options are contracts that expire on the same day they’re traded, offering investors a chance to potentially make quick gains based on intraday market fluctuations.
The new fund has a 0.85% management fee and high risk rating.
New ETF series expand access to existing strategies
Two asset management firms have announced expanded access to existing mutual funds.
Purpose Investments Inc. has launched new ETF series units for the Purpose Global Resource Fund, which is an actively managed global resource strategy with “exposure across the full breadth of the sector, from energy and metals to mining and infrastructure, guided by a disciplined, repeatable investment process,” a release said.
The ETF series of the fund began trading on the TSX on Tuesday, under the ticker symbol PGRX.
Meanwhile, BMO Investments Inc. has introduced ETF series units for the BMO Market+ International Equity Fund, which aims to achieve long-term capital growth by investing primarily in equity securities of companies located outside Canada and the United States “or other companies that benefit from international exposure,” a release said.
The BMO ETF series began trading on Cboe Canada on Thursday, under the ticker symbol ZMPI.
Fidelity provides update on fund terminations
This week, Fidelity Investments Canada ULC provided an update on some upcoming fund terminations.
In a release, the firm said it’s decided not to terminate the Fidelity Disruptors Class and Fidelity Disruptive Automation Class.
However, it’s still proceeding with terminations for the following fund offerings:
- Fidelity Canadian Monthly High Income ETF (TSX: FCMI)
- Fidelity Canadian Monthly High Income ETF Fund
- Fidelity Global Monthly High Income ETF (TSX: FCGI)
- Fidelity Global Monthly High Income ETF Fund
- Fidelity Long-Term Leaders Currency Neutral Fund
- Fidelity Long-Term Leaders Fund
Those funds are set to be terminated on July 24, as previously announced on March 31.