NexGen Financial Limited Partnership today announced that its funds are now available for purchase on FundServ through registered dealers and financial advisors in Ontario, Quebec, Alberta and British Columbia.
NexGen began operation in May 2006 with 13 registered and 13 tax-managed mutual funds and has opened the funds for sale effective today.
NexGen’s fund structure is designed to provide investors and their advisors with a number of tax planning enhancements using four unique tax planning share classes. Taxable investors are also able to switch between each tax class and each mutual fund in the structure on a tax deferred basis, a first for the industry.
“While traditional mutual funds have been a wonderful investment vehicle for many Canadian investors over the past 20 years, they are not tax efficient” said CEO of NexGen, Jim Hunter, in a news release. “NexGen’s new fund structure allows taxable investors and their advisors to self-select taxable investment income and deferral preferences which should ultimately provide them with better after-tax returns.”
When investors select a NexGen Tax Managed Fund (other than NexGen Canadian Cash Tax Managed Fund), they have the added flexibility of making a second decision, selecting one of four tax class options. For taxable investors seeking monthly income, they can choose the Return of Capital Class or the Dividend Tax Credit Class. Investors with special tax objectives and seeking long-term growth are able to choose the Capital Gains Class or Compound Growth Class.
“NexGen’s fund structure delivers its sophisticated investment income and tax planning options through special tax classes that are not available from competitors. NexGen Fund investors can switch, on a tax-deferred basis, between fund investment mandates and tax classes depending on their individual investment and tax planning needs,” added President of NexGen, Laurie Munro.
NexGen commenced operations in May 2006 following the completion of a private placement of $24 million from private equity investors in Canada.
The firm was founded by Jim Hunter, former CEO and chairman of Mackenzie Financial Corp. In addition to Hunter, NexGen has assembled a strong and very experienced senior management team which has significant fund industry expertise.
NexGen funds are managed by both an internal investment manager and external sub advisors. Selective Asset Management Inc., led by principal Robert McWhirter and J.Zechner Associates Inc. will act as sub-advisors on five and six mandates respectively. Two fund mandates will be managed by NexGen’s investment manager, Jeffrey Young.
The funds will initially be available for purchase in the provinces of British Columbia, Alberta, Ontario and Quebec. NexGen anticipates the funds will be available in the remaining provinces and territories in mid 2007.
NexGen launches new mutual fund family
New fund structure focused on improving after-tax returns
- By: IE Staff
- September 5, 2006 September 5, 2006
- 09:10