AGF, CIBC launch PPN series

AGF Funds Inc. and CIBC, both based in Toronto, have launched Series 2 and Series 3 of CIBC AGF Dividend Income Fund ROC (Return of Capital) Deposit Notes. The notes of each series offer 100% principal protection if held to maturity, as well as monthly ROC payments and growth potential. The notes are linked to the performance of AGF Dividend Income Fund, which emphasizes total return and enhanced yield return potential using a “growth at a reasonable price” approach to select securities, AGF says. The Series 2 notes are available for purchase until Dec. 14, and will mature in December 2015. The Series 3 notes will be available from Dec. 17 until March 17, 2008, and will mature in March 2016.

Saxon adds to its small-cap family

Toronto-based Saxon Financial Inc. has announced the addition of three new funds to the Saxon small-cap fund family: Saxon Microcap Fund, Saxon U.S. Small Cap Fund and Saxon Global Small Cap Fund. The funds aim to achieve significant long-term growth by investing primarily in well-diversified portfolios of companies with below-average market capitalization. Saxon Microcap will be co-managed by Bob Tattersall and Scott Carscallen, the same portfolio managers that manage Saxon Small Cap. Tattersall will also be the portfolio manager on Saxon U.S. Small Cap and Saxon Global Small Cap, along with Carmen Veloso and John McKee. Advisor commissions begin at 0%-2.5% for front-end sales. There is no deferred sales or low-load option. Redemption fees begin at 2% in Year 1 and end at zero after Year 2 for Saxon Microcap, and are 2% for the first 90 days and zero thereafter for Saxon U.S. Small Cap and Saxon Global Small Cap. Trailing commissions are 1% for A-class units. Management fees for Saxon Microcap are 3.25% for A-class units and 2.25% for F-class units; for U.S. Small Cap Fund and Global Small Cap Fund, they are 2.15% for A-class units and 1.25% for F-class units. Minimum investment is $5,000 per account.

Sentry Select brings out real estate fund

Toronto-based Sentry Select Capital Corp. has launched Sentry Select Global Real Estate Fund. The fund will allow investors to invest primarily in publicly listed real estate-related issuers and real estate investment trusts; it will also pay quarterly cash distributions while preserving and enhancing net asset value per unit. The fund will be managed by Sandy McIntyre and Dennis Mitchell. The fund will issue listed units and F-class units. The offering price for both is $10 a unit. Minimum purchase quantity for listed units is 200, and 500 for F-class units.

Acuity merges funds

Toronto-based Acuity Funds Ltd. is merging Acuity All Cap & Income Trust, Acuity Diversified Total Return Trust and Acuity Multi-Cap Total Return Trust with Acuity Growth & Income Trust. Acuity manages all four funds. The merger will allow unitholders to hold units of Acuity Growth & Income Trust, which offers a larger market capitalization, increased trading liquidity and lower operating costs on a per-unit basis. Unitholders of the three terminating funds who do not wish to participate in the merger will be able to redeem their units before the merger closes. The redemption date has been set for Dec. 20, with Dec. 27 as the redemption payment date. The merger is expected to be completed on Dec. 28, pending unitholder and regulatory approval.

Investors Group expands Summa lineup

Winnipeg-based Investors Group Inc. has announced the expansion of its Summa fund family with the addition of Investors Summa Global SRI Fund and Investors Summa Global Environmental Leaders Fund. The funds will join the existing Investors Summa SRI Fund, which is primarily invested in Canadian equities. Investors Summa Global SRI will give investors the opportunity to increase their exposure to globally diversified investments and will be managed by Peter O’Reilly. Investors Summa Global Environmental will focus on companies that are creating innovative solutions to environmental issues and will invest in companies with environmental prac-tices that set high standards within environmentally sensitive industries; it will be managed by Dan McClure, who is also the portfolio co-manager of Investors Summa SRI with Keith McLean. Advisor commissions are up to 4.1% for deferred sales. Redemption fees begin at 5.5% in Year 1 and end at zero after Year 7 for the regular DSC schedule. Trailing commissions are up to 0.38% for the DSC option and up to 0.73% for the no-load option. Management fees are 2% for A-class units. There is no minimum investment once household investment requirements of $15,000 are met. Both of the new funds are also available as corporate-class funds. The Summa family was first established in 1987 and is Canada’s largest socially responsible investing family of funds.

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