Investors Group plans a number of enhancements to its fixed income offering in order to address the current low interest rate environment and provide the appropriate diversification opportunities for its clients.

These are in conjunction with its recently announced introduction of the Investors Fixed Income Flex Portfolio.

“If interest rates begin to rise, fixed income investors will need more diversification options to help ensure they achieve the investment growth and income they are looking for,” said John Wiltshire, senior vice president, product and financial planning at Winnipeg-based Investors Group.

New Canadian corporate bond fund to launch in May

Investors Canadian Corporate Bond Fund will aim to provide current income by investing primarily in investment grade fixed income securities issued by Canadian corporations, along with other securities such as high yield debt instruments and mortgages. This fund complements the risk and return characteristics of our existing fixed income funds.

Subject to regulatory approval, this new fund is expected to be available in early May 2011.

Fund Merger

Investors Group also intends to merge its Investors Government Bond Fund into the Investors Canadian Bond Fund, pending regulatory and unitholder approvals. This is expected to provide investors in the merging fund with the benefits of the broader investment mandate available with the Investors Canadian Bond Fund, which in turn provides the potential for more stable and improved long term performance.

In addition, the merger will result in the Investors Canadian Bond Fund reducing its annual management fee by 0.15%.

Unitholders of record (as of March 10, 2011) holding units of Investors Government Bond Fund will receive a Notice of Meeting, Proxy and Management Information Circular detailing the changes and will be asked to approve the merger at a unitholder meeting scheduled for April 28, 2011.

Portfolio Allocation Enhancements

Investors Group is also enhancing the make-up of some of its Allegro Portfolios, Alto Portfolios, Alto Monthly Income Portfolios, as well as Investors Income Portfolio, Investors Income Plus Portfolio, Investors Retirement Plus Portfolio, and Investors Growth Plus Portfolio.

Some of these changes are in conjunction with the introduction of the new Investors Canadian Corporate Bond Fund and the planned merger of the Investors Government Bond Fund into Investors Canadian Bond Fund.

In addition, diversification to global equities will be enhanced, most notably by expanding exposure in Asia, in a number of Investors Group Portfolio Funds.

For a complete list of the proposed enhancements, click here.

IE