The launch of two distribution-paying global funds and a natural resources fund by Toronto-based Acuity Funds Ltd. is de-signed to leverage the firm’s expertise in the sectors and take advantage of growing investor appetite for these types of products.

“We have experienced strong demand from financial advisors for global distribution-paying and natural resources funds,” says Stephen Crawford, Acuity’s senior vice president, national sales. “We foresee these to be big growth areas.”

Launched in October, the three new funds are Acuity Global High Income Fund, Acuity Global Div-idend Fund and Acuity Natural Resource Fund.

Acuity Global High Income will invest primarily in a diversified portfolio of interest-bearing, dividend-paying or distribution-paying securities from around the world. It targets a 25%-50% range for each of dividend stocks, bonds and income trusts, including real estate investment trusts, income depositary shares and master limited partnerships. IDSes and MLPs are typically business trusts that are publicly traded.

Acuity Global Dividend will focus on a narrower area, investing primarily in global dividend-paying equity securities, aiming for companies that possess proven management and proprietary strategic advantages, which are essentially established blue-chip stocks with strong cash flow.

Acuity Natural Resource will invest primarily in the equity securities of a diversified group of companies, Canadian and foreign, engaged either directly or indirectly in the natural resources sector. It has a targeted exposure of one-third energy, including areas such as services, infrastructure and alternative energy; one-third precious metals, including gold, silver and plati-num; and one-third in commodities such as base metals, chemicals, paper/forest products and agricultural products. The fund will have no capitalization bias.

Acuity Global High Income will pay a monthly distribution of 4¢ a unit for an initial annualized distribution of 4.8%, while Acuity Global Dividend will pay a quarterly distribution of 6¢ a unit for an initial annualized distribution of 2.4%. Acuity Natural Resource does not have a targeted distribution.

Crawford says distribution-paying global funds “are not covered well in Canada.”

There is no other fund in Canada with characteristics similar to Acuity Global High Income, he adds. This makes it what he calls “an unexploited opportunity in the Canadian mutual fund industry.”

The two global funds will be managed by a new addition to the Acuity team, Spencer Mellish, who formerly was co-leader of the global investment team at Montreal-based CN Rail.

Acuity claims that it has a strong track record in areas in which it has launched the new funds. For instance, its existing Acuity High Income Fund had more than $1.8 billion in assets under management as of Sept. 30, while Acuity Growth and Income Fund and its Income Trust Fund had combined assets of about $1 billion.

The firm also says it currently manages about $2 billion of dividend-paying equities.

The new funds are available in Class A and Class F units. Class A units may be purchased under the initial sales charge, level load or the deferred sales charge option.

Minimum initial investment is $500 for each fund, or $50 for automatic investment plans. IE