AIC changes strategy on hedging fund

AIC Ltd. has adjusted its strategy for hedging AIC Global Financial Split Corp.’s non-Canadian-dollar currency value. Given the significant increase in the C$ against the U.S. dollar, AIC wants at least 50% of the fund’s non-C$ currency value to be hedged back into C$. Previously, AIC aimed to hedge at least 90% of the fund’s non-C$ currency value back to the C$.

Altered benchmarks at AGF for Elements

Toronto-based AGF Funds Inc. has made four changes to the benchmarks of its AGF Elements program, which was launched in November 2005. “Two benchmarks were eliminated earlier this year by their respective firms, while two others were replaced in favour of benchmarks that price daily, which is preferred in calculating the investor’s Elements Advantage,” says Larry Herscu, senior vice president of product management and marketing at AGF Funds. “These changes are not expected to impact unitholders.” For AGF U.S. Risk Managed Class, the S&P/Citigroup growth total return index has replaced the S&P Barra growth total return index. The new index for AGF Global Resources Class is 60% MSCI world energy total return index and 40% MSCI world materials total return index, which replaces the FTSE world resources total return index. And to meet the preferred daily pricing methodology, AGF Funds has replaced two other benchmarks that price at monthend. For AGF Canadian Small Cap Fund, the S&P/TSX small-cap total return index has replaced the NB small-cap total return index. For AGF Canadian Resources Fund Ltd., 60% S&P/TSX capped energy total return index and 40% S&P/TSX capped materials total return index have replaced the Morningstar/TSX resources total return index. Starting in October, AGF Elements portfolios will be rebalanced on or about the 15th day after the calendar quarter ends, according to the asset-allocation recommendations of its consultant, Wilshire Associates Inc. AGF Funds says this change will ensure that client reporting in underlying funds is unaffected by the movement of an Elements portfolio out of smaller mandates. The Elements program’s five portfolios were designed to give investors access to a diversified group of investments, with the promise of giving investors up to 0.9% in units if the portfolio does not match or outperform its customized benchmark over a three-year annualized period.

Theodorou joins Sarbit Asset Management

Winnipeg-based Sarbit Asset Management Inc. has hired Nestor Theodorou, who joins the firm as executive vice president and portfolio manager of fixed-income. Theodorou has more than 16 years of experience in fixed-income, starting with a career as a fixed-income analyst with Canada Life Assurance Co. Since then, he has managed the trading desk at Burns Fry Ltd. (now BMO Nesbitt Burns Inc.), served as director of fixed-income at Assante Asset Management Ltd. and, most recently, was the fixed-income portfolio manager at Investor’s Group Inc. Larry Sarbit, Sarbit’s president and CEO, said in a news release that Theodorou’s appointment comes at an opportune time: “Fixed-income will play a larger and larger role in people’s portfolios with the baby boomers now hitting retirement age. We are extremely fortunate to hire someone of Nestor’s pedigree to run fixed-income at Sarbit.” The firm is planning to launch two fixed-income products this month under Theodorou’s management.

Ethical launches F-class units

Vancouver-based Ethical Funds Co. has introduced F-class units for its Ethical-brand funds, including Ethical Advantage funds. The new offerings will help fee-based advisors provide customized fees to clients and help build stronger relationships. The new units are “designed to meet the growing demand for competitive socially responsible investment options from fee-based advisors,” president and CEO Don Rolfe said in a release.

Investors Group rolls out China fund

Winnipeg-based Investors Group Inc. has launched Greater China Fund, which will invest in listed companies trading on Hong Kong, Taiwan, Singapore and Chinese stock exchanges that derive a significant portion of their revenue from the Greater China region. Tim Leung, currently the lead manager of Investors Pacific International Fund and Investors Pan-Asian Growth Fund, will also head Greater China Fund’s management team. Advisor commissions are up to 4.1% for funds sold on the deferred sales charge option. There is no sales commission for units sold on a no-load basis. The redemption fee schedule begins at 5.4% in the first two years of purchase and declines to zero after Year 7. Trailing commissions vary according to advisors’ tenure at Investors Group, and the average monthly value of all “qualified client assets” serviced by the advisor, according to the fund’s prospectus. The management fee is 2%. Investors must have a minimum of $15,000 invested in any Investors Group products to participate in the fund.

@page_break@Compiled by Lara Hertel (lhertel@investmentexecutive.com)