NBI gets “smart”

Montreal-based National Bank Investments Inc. (NBI) has launched its first “smart beta” funds – NBI SmartBeta Canadian Equity Fund and NBI SmartBeta Global Equity Fund. These funds are subadvised by New York-based Rothschild Asset Management Inc. The funds utilize both active and passive investing with a strategy called “equal-risk contribution,” which is meant to reduce volatility and limit maximum drawdowns. Advisor commissions for both funds are 0%-5% for front-end sales, 5% for deferred sales and 2.5% for the low-load option. Redemption fees begin at 6% in Year 1 and end at zero after Year 6 for the regular DSC schedule; or begin at 3% in Year 1 and end at zero after Year 3 of the low-load schedule. Trailing commission are 1% for front-end sales; 0.5% for the first six 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 1.75% for A-class units and 0.75% for F-class units. Minimum investment is $500. NBI is a wholly owned subsidiary of Montreal-based National Bank of Canada.

(fcollie@investmentexecutive.com.)