Oakville, Ont.-based Pro-Financial Asset Management Inc. has launched Pro FTSE NA Dividend Index Fund. The fund is designed to provide investors with steady cash flow and is suitable for investors who are seeking income and have a moderate tolerance for risk and a short- to medium-term investment horizon. The fund will track an index — custom-designed and developed by FTSE Group — that applies a screening methodology to focus the index on securities with the highest forecasted dividend yields. Based on the FTSE custom North American dividend index, the fund is designed to provide monthly income to investors through a portfolio of North American dividend-paying securities. The composition of the fund will include 35 constituents of the FTSE RAFI Canada index and 15 constituents of the FTSE RAFI U.S. 1000 index, with each security equally weighted on the annual rebalancing date. The methodology is designed to generate a high level of income for investors and provide them with some protection from market bubbles by underweighting overpriced stocks and placing a greater emphasis on undervalued companies, says Pro-Financial. A monthly distribution will be paid as dividend income and return of capital. Distrubutions will commence on Jan. 31, 2011. To minimize currency risk, the fund will hedge its U.S.-dollar exposure. Advisor commissions for front-end sales are 0%-4%. The trailing commissions are 0.8% for front-end sales. Management fees are 1.6% for A-class units and 0.65% for F-class units. Minimum investment is $1,000.

Stone changes investment fund manager

Toronto-based Stone & Co. Ltd. and Stone & Co. Corporate Funds Ltd. have announced that Stone Asset Management Ltd. has been appointed investment fund manager of Stone & Co. Dividend Growth Class Canada Fund, Stone & Co. Resource Plus Class Fund, Stone & Co. Flagship Growth & Income Fund Canada, Stone & Co. Flagship Stock Fund Canada, Stone & Co. Flagship Global Growth Fund, Stone & Co. Growth Industries Fund, Stone & Co. Flagship Money Market Fund Canada and Stone & Co. EuroPlus Dividend Growth Fund. In addition to the Stone mutual funds, Stone Asset Management will also act as investment fund manager for the Stone 2009 Flow-Through Limited Partnership, the Stone 2010 Flow-Through Limited Partnership and Stone Agribusiness Fund.

Horizons expands ETF lineup

Toronto-based Jovian Capital Corp. and its subsidiary, BetaPro Management Inc. — manager of the Horizons BetaPro exchange-traded funds — have expanded their ETF offering with the newly launched Horizons BetaPro S&P 500 Index (C$ Hedged) ETF. In September 2010, BetaPro had launched Horizons BetaPro S&P/TSX 60 Index ETF, which tracks the S&P/TSX 60 index; following in its footsteps, Horizons BetaPro S&P 500 Index ETF is the second ETF launched by BetaPro that will track an index already available to Canadian investors through another Toronto Stock Exchange-listed, index-tracking ETF. The new S&P 500 ETF will provide inves-tors with a low-cost and tax-efficient total-return structure, providing exposure to the S&P 500 composite index and seeking to replicate, to the extent possible, the (total return) performance of the S&P 500 Canadian dollar-hedged index, net of expenses, says BetaPro. Horizons BetaPro S&P 500 Index ETF has begun trading on the TSX under the symbol HXS.

Mackenzie taps two to lead Cundill

Toronto-based Mackenzie Financial Corp. has appointed Andrew Massie and Lawrence Chin to lead its Cundill investment division. Massie, vice president, investment management, and portfolio manager, had joined the Cundill organization in 1984. He will continue to manage Mackenzie Cundill Value Fund, for which he has had portfolio-management responsibilities since 2004. Chin, vice president, investment management, and portfolio manager, had joined the Cundill team in 1999. He will continue to manage Mackenzie Cundill Canadian Security Fund and Mackenzie Cundill Canadian Balanced Fund, and to co-manage Mackenzie Cundill American Class, Mackenzie Focus All-Canadian Class and Mackenzie Focus Canada Fund. “Andrew Massie and Lawrence Chin will provide continuity in leading the Cundill investment division,” says Bob Tattersall, Mackenzie’s chief investment officer. “They are both well-known, respected value managers who already manage very large Cundill funds with proven performance records.” Massie and Chin succeed Jim Thompson, who is returning to the U.S. to pursue another opportunity.

Compiled by Clare O’Hara (cohara@investmentexecutive.com).