Toronto-based Bullion Management Group Inc. has expanded its line of precious-metals bullion funds with the launch of BMG Gold Bullion Fund. The fund invests exclusively in uncompromised physical gold bullion and provides investors with a core holding that offers long-term security and potential capital growth, says the firm. BMG Gold Bullion Fund is an open-ended mutual fund trust that can be purchased and redeemed daily at net asset value. As a result, it has the same liquidity as bullion itself. All bullion meets London good delivery standards. BMG Gold Bullion Fund does not use derivatives, futures, options or currency hedging, nor will it invest in gold certificates. Units of BMG Gold Bullion Fund cannot be borrowed for shorting. BMG Gold Bullion Fund is built on the same model as BMG Bullion Fund, which invests only in gold, silver and platinum bullion. Both funds are designed to provide a low-cost, medium-risk alternative for investors seeking to purchase and hold precious metals and bullion without the worry, trouble and cost associated with trading and storage, says BMG. The company’s funds are managed through its subsidiary, Bullion Management Services Inc., and the bullion holdings for both funds are allocated, insured and held in trust under a custodial agreement with Bank of Nova Scotia in Toronto. Advisor commissions for front-end sales are 0%-5%. Trailing commissions are 1% for front-end sales. Management fees are 2.25% for A-class units and 1.25% for F-class units. Minimum Investment is $2,500 for an initial subscription for registered plans, $1,000 otherwise; and in $100 increments thereafter. BMG Gold Bullion Fund is available in both Canadian and U.S. dollars and is eligible for all registered retirement plans.

New subadvisor for Counsel

Toronto-based Counsel Portfolio Services Inc. has retained Toronto-based Acuity Investment Management Inc. to provide portfolio subadvisory services for Counsel Money Market Fund. Acuity has replaced Cumberland Private Wealth Management Inc., also of Toronto. In addition, Counsel has announced that the mergers of Counsel Select Canada Fund, Counsel Select America Fund and Counsel Select International Fund into Counsel Canadian Growth Fund, Counsel U.S. Growth Fund, and Counsel International Growth Fund, respectively, will be completed in mid-February. The addition of Counsel Fixed Income Fund, Counsel Canadian Dividend Fund and Counsel International Growth Fund as underlying funds to Counsel Managed Portfolio will also be effective in mid-February.

CC&L launches bond fund

Toronto-based Connor Clark & Lunn Capital Markets Inc. has introduced Build America Investment Grade Bond Fund, which will provide investors with exposure to a portfolio composed primarily of investment-grade Build America bonds, which are issued by U.S. state and local governments to finance capital projects that meet essential needs, such as the construction of public schools, roads, water and transportation infrastructure, bridges, ports and public buildings. Many Build America bonds are “general obligation” bonds, backed by the governments that issue them. The CC&L fund offers investors monthly tax-advantaged cash distributions, as well as the ability to maximize total return, while seeking to reduce risk. Distributions are initially targeted to be $0.1198 per month per unit, consisting primarily of return of capital, representing a yield on the unit issue price of 5.75% per annum. Chicago-based subadvisor Nuveen Asset Management Inc. will manage the CC&L fund and, in consultation with the fund’s manager, currently intends to employ a hedging strategy designed to mitigate the expected impact of significant interest rate increases on the net asset value. The fund’s managers also intend that substantially all of the value of the portfolio that is exposed to U.S. dollars will be hedged back to the Canadian dollar. Advisor commissions are 0%-3% for front-end sales. Trailing commissions are 0.3% for front-end sales. Management fees are 0.8% for both A-class units and F-class units. Minimum investment is $25.

Six new iShares ETFs from BlackRock

Toronto-based BlackRock Inc. has unveiled six new iShares funds in Canada, adding to its existing family of 36 exchange-traded funds. The new ETFs will offer investors increased access to emerging-markets countries and U.S. fixed-income markets, says BlackRock. The six new funds are iShares MSCI Brazil Index Fund, iShares S&P Latin America 40 Index Fund, iShares CNX Nifty India Index Fund, iShares China Index Fund, iShares U.S. IG Corporate Bond Index Fund (CAD-Hedged) and iShares U.S. High Yield Bond Index Fund (CAD-Hedged). Toronto-based BlackRock Asset Management Canada Ltd. is manager of the funds. The four emerging-markets ETFs offer a cost-efficient way of gaining targeted exposure to growth-oriented emerging-markets countries, while the U.S. bond ETFs address investors’ needs for more sophisticated income-generating products, says BlackRock.

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