Montreal-based O’Leary Funds Management LP has completed the conversion of O’Leary Advantaged Tactical Global Corporate Fund into an open-ended mutual fund, which has been renamed O’Leary Global Bond Yield Advantaged Fund. The fund’s investment mandate and distribution policy remains the same. The conversion aims to provide enhanced liquidity and pricing by giving investors the ability to subscribe to additional units — or redeem them — on a daily basis at their net asset value. As a result of the conversion, the fund now offers an additional series of units, including F-class units. These units carry the same attributes as X-class units but do not have a service fee. Changes were also made to the fund’s trust units, which were exchanged for X-class units and delisted from the Toronto Stock Exchange. These units will become redeemable at their NAV per trust unit on a daily basis. The management fee also has been reduced to 1% from 1.5%, and service fees have increased to 0.8% from 0.4% for X-class units.
New growth fund from AlphaNorth
Toronto-based AlphaNorth Asset Management has launched AlphaNorth Growth Fund. The fund’s objective is to generate long-term returns though diversified exposure, primarily investing in small- to mid-cap Canadian companies with attractive risk/reward characteristics. These are companies with market capitalizations of $100 milion-$5 billion. The fund is eligible for registered plans such as RRSPs. There are no sales charges or redemption fees. Trailing commissions are 1% per annum of the aggregate net asset value of A-class units held through the dealer. Management fees are 2%. Minimum investment is $1,000.
Franklin Templeton explores the frontier
Toronto-based Franklin Templeton Investments Corp. has launched Templeton Frontier Markets Fund, which invests primarily in frontier markets. The fund is available to retail investors only through its Frontier Markets Corporate Class structure, which also provides greater tax efficiency to investors who switch between funds and portfolios. Under the corporate-class structure, advisor commissions are: 0%-6% for front-end sales; 5% for deferred sales; or 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. There are no trailing commissions. Management fees are 2.5% for A-class units and 1.5% for F-class units. Minimum investment is $500.
Fund manager changes at Mackenzie
Toronto-based Mackenzie Financial Corp. has announced a change in portfolio management for several funds. Mark Grammer has been appointed as lead portfolio manager of Mackenzie Universal International Stock Fund and Mackenzie Universal International Stock Class. Henderson Global Investors will no longer act as subadvisor to those funds, and has also been removed from the following funds: Mackenzie Focus Far East Class, Mackenzie Focus Japan Class, Mackenzie Focus International Class and Mackenzie Focus Canada Fund. Effective Sept. 4, an additional portfolio-management team has been added to both Mackenzie Focus Far East Class and Mackenzie Focus Japan Class. Mackenzie Focus International Class assets that were previously managed by Henderson Global Investors will be taken over by Grammer, and Mackenzie Focus Canada Fund assets will be invested in Mackenzie Focus Fund. Assets of these listed funds are equally distributed among portfolio managers. Visit www.mackenziefinancial.com for more details on these fund-management changes.
New subadvisors for CIBC funds
Toronto-based CIBC Asset Management Inc. has appointed new subadvisors on two of its funds in an effort to improve service and quality of investments for investors. David Winters of Wintergreen Advisers LLC, a current subadvisor on Renaissance Global Markets Fund, now also oversees the foreign component of Renaissance Canadian Core Value Fund. CIBC Global Asset Management Inc. is now the portfolio subadvisor on Renaissance European Fund.
Compiled by Olivia Li (oli@investmentexecutive.com)
Clarification: Scotia Income Advantage Fund and Scotia US$ Balanced Fund are sold on a no-load basis (0% up front), with a 1% annual trailing commission. Incorrect information appeared in the August 2011 issue of Investment Executive.