Toronto-based AGF Investments Inc. has launched three new income-based products: AGF Traditional Income Fund, AGF Global Aggregate Bond Fund and AGF Pure Canadian Balanced Fund. AGF Traditional Income Fund, co-managed by Peter Frost, Tristan Sones and Tom Nakamura, offers investors a 5% annual distribution, paid monthly. The fund focuses on providing income with capital preservation. AGF Global Aggregate Bond Fund will be available on July 15 and will invest primarily in investment-grade debt securities of governments, corporations and other issuers around the world. Jean Charbonneau and Nakamura will co-manage the fund. AGF Pure Canadian Balanced Fund offers a balanced fund with a home-country bias, investing almost exclusively in Canadian bonds and stocks. Martin Hubbes, along with Charbonneau, Sones and Nakamura, will manage the fund. Advisor commissions for front-end sales are 0%-6%; 5% for deferred sales; or 2.5% for the low-load option. Redemption fees begin at 5.59% in Year 1 and end at 0% after Year 7 for the regular DSC schedule, or begin at 3% in Year 1 and end at 0% after Year 3 of the low-load schedule. Trailing commissions are 1% for front-end sales; 0.5% for the first seven years of deferred sales, and 1% thereafter; and 0.5% for the first three years of low-load sales, and 1% thereafter. Management fees are 1.85% for A-class units and 0.85% for F-class units for AGF Traditional Income; 1.5% for A-class units and 1% for F-class units for AGF Global Aggregate Bond; and 2% for A-class units and 1% for F-class units for AGF Pure Canadian Balanced. Minimum investment for each fund is $500. In addition, AGF has announced name changes for two of its balanced funds: AGF Canadian Balanced Fund has been renamed to AGF Canadian Asset Allocation Fund to describe the product better; AGF Canadian Balanced Value Fund changes has been renamed to AGF Traditional Balanced Fund to describe the management style better.

Caldwell appoints Meisels as consultant to fund

Toronto-based Caldwell Investment Management Ltd. has appointed Ron Meisels, president of Montreal-based Phases & Cycles Inc., as a consultant to provide research for Caldwell Canada Fund. The fund’s investment objectives of long-term capital appreciation will not change, but decisions about sector weightings and selection of securities will be assisted by research provided by Meisels and his team. Securities will be chosen from a universe of the 100 largest Canadian companies, as ranked by market capitalization. The fund will also be permitted to manage the cash balance actively, write covered calls and buy bear index exchange-traded funds when market conditions warrant. Brendan Caldwell, president of Caldwell Investment, manages Caldwell Canada Fund.

BMO launches new ETF-based mutual funds

Toronto-based BMO Guardian Funds has launched six new mutual fund portfolios of exchange-traded funds: BMO Guardian Canadian Tactical ETF Class Advisor Series, BMO Guardian Global Tactical ETF Class Advisor Series, BMO Guardian Security ETF Portfolio Advisor Series, BMO Guardian Balanced ETF Portfolio Advisor Series, BMO Guardian Growth ETF Portfolio Advisor Series and BMO Guardian Aggressive Growth ETF Portfolio Advisor Series. The new funds will provide clients with a broader choice and greater access to the growing ETF market. The new offerings include two tactically managed funds and four strategically managed, risk-differentiated portfolios. Each ETF mutual fund portfolio is a class of BMO Global Tax Advantage Funds Inc., a mutual fund corporation that allows for switching among other BMO Global Tax Advantage Funds without incurring taxes. Minimum investment is $1,000. In addition, Toronto-based Bank of Montreal has announced that unitholders of BMO Canadian Government Bond Index ETF have approved a change of the investment objective. As a result, the current underlying index — the Citigroup Canadian government bond index — will be replaced with a mid-term federal bond index, initially, the DEX mid-term federal bond index. Investors will now have the ability to focus their investment on the mid-term section of the federal bond market, says BMO. As a result of the change in index, management fees will be reduced to 0.2%.

Excel reduces MERs on several funds

Toronto-based Excel Funds Management Inc. has reduced the management expense ratios on several funds in its mutual fund lineup. The following funds will now have updated MERs: Excel Income & Growth Fund’s MER is now 1.76%; Excel India Trust(2)’s MER is now 1.92%; Excel Latin America Fund’s MER is now 2.85%; Excel BRIC Fund(3)’s MER is now 2.88%; Excel Emerging Europe Fund’s MER is now 2.94%; Excel India Fund’s MER is now 2.98%; Excel China Fund’s MER is now 3.19%; Excel Chindia Fund’s MER is now 3.36%; and Excel Money Market Fund’s MER is now 0.24%. As Excel continues to grow, the firm says, it will continue to drop MERs further.

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