New ETFs for BetaPro

Toronto-based BetaPro Management Inc. has launched two new Horizons BetaPro exchange-traded funds based on the MSCI emerging markets index, the first ETFs in Canada to offer inverse and magnified exposure to emerging markets. Horizons BetaPro MSCI Emerging Markets Bull Plus ETF is designed to provide daily investment results that correspond to two times (200%) the daily performance of the MSCI emerging markets index. Horizons BetaPro MSCI Emerging Markets Bear Plus ETF is designed to provide daily investment results that correspond to two times the inverse daily performance of the index. The new funds will bring the total number of ETFs in the BetaPro family to 28.

PH&N reopens one fund, cuts fees on others

Vancouver-based Phillips Hager & North Investment Management Ltd. has lowered management fees on selected funds and has reopened PH&N Vintage Fund, which was launched in April 1986 and closed to new investors in 1993. Changes in market conditions and liquidity support the reopening of the fund, PH&N says. PH&N Vintage Fund now will be managed by Don Anderson and Andrew MacDonald. Its management fee is currently 1.75% for Series A and F, but will be reduced to 1.25% for Series A and 1% for Series F on Oct. 1. As well, management fees have been reduced on A-class units of seven funds and on F-class units of 17 funds. A-class units fees are between five and 35 basis points lower, while F-class units have been cut by three to 60 bps. Minimum account size at PH&N is $25,000; however, certain funds may also be purchased through third-party dealers with a minimum investment of $5,000.

Manulife appoints subadvisor

Manulife Mutual Funds, a subsidiary of Toronto-based Manulife Financial Corp., says that Foyston Gordon & Payne Inc. of Toronto will assume subadvisor responsibilities for Manulife Small-Cap Value Fund, which is used in Manulife Simplicity Portfolios. Foyston Gordon & Payne employs a bottom-up value discipline based on internal fundamental research and valuation analysis, with its primary focus on select attractively priced companies with strong fundamentals, solid business prospects, financial strength and quality management. Foyston Gordon & Payne replaces Howson Tattersall Investment Counsel Ltd. as subadvisor of the fund, effective Aug. 26.

AIM Funds beefs up Core Bundles

Toronto-based AIM Funds Management Inc. has enhanced two of its Core Bundles managed products to provide investors with an improved style of diversification and greater clarity. AIM Trimark Core Canadian Equity Class will now be composed of two — rather than three — funds with the removal of AIM Canadian First Class Fund; assets will be split between Trimark Canadian Fund and AIM Canadian Premier Fund. The bundle will be managed by portfolio-management teams from AIM and Invesco Aim Advisors Inc. For AIM Trimark Core American Equity Class, AIM American Growth Fund will be replaced by Powershares FTSE RAFI US 1000 Portfolio; assets will be split evenly between the Powershares portfolio and Trimark U.S. Companies Fund. Investors will also benefit from a reduction in the management fees for AIM Trimark Core American Equity Class to 1.5% from 2% for Series A and to 0.5% from 1% for Series F. This fee reduction is being implemented to take into consideration that the PowerShares FTSE RAFI US 1000 Portfolio has an embedded management fee of 0.60%.

Hartford expands fund line

Toronto-based Hartford Investments Canada Corp. is expanding its lineup of core mutual fund solutions with the launch of Hartford Global High Income Fund and the addition of T-unit options on eight Hartford mutual funds. Hartford mutual funds purchased as T-units are designed to pay investors a monthly distribution of 6% of the unit’s value (annualized) as return on capital, which is not immediately taxable, therefore making tax management simpler for investors. Hartford Global High Income Fund will provide investors with a hefty level of current income, with the potential for capital appreciation. The fund will be subadvised by Connecticut-based fixed-income manager Hartford Investment Management Co. Commissions for funds sold with a front-end load are 0%-5%, 5% for deferred sales, 1% for the low-load L1 option or 3% for the low-load L3 option. Redemption fees begin at 6% in Year 1 and end at zero after Year 6 for the regular DSC schedule; begin at 2% in Year 1 and end at zero after Year 2 for the low-load L1 option; or begin at 4% in Year 1 and end at zero after Year 3 for the low-load L3 option. Trailing commissions are 0.5% for front-end sales, and 0.25% for deferred sales and low-load options. Management fees are 1.5% for A-class units and 0.95% for F-class units. Minimum investment is $500.

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