Phillips, Hager & North Investment Management Ltd. (PH&N) has filed an amended simplified prospectus for the 25 PH&N funds currently available to retail investors.
The amendment reflects changes to PH&N’s product offering that are designed to enhance transparency, align PH&N’s fund series with industry naming conventions, and provide greater accessibility and expanded options for investors and advisors, the company said Wednesday.
The changes include:
> the re-naming of Series A fund units to Series D, in order to clarify that this series is not intended for use by third-party advisors. This is a naming change only and has no impact on the funds’ management fees or the service or advice provided by PH&N to its clients. Series D fund units will continue to be available for purchase by investors directly through PH&N, as well as through RBC Direct Investing and other discount brokers.
> the introduction of Series C fund units, designed for use by full-service advisors. Series C fund units will be available for 25 PH&N funds, all of which will have management fees lower than those of the category average. PH&N will pay a trailing commission on assets invested in Series C units of up to 100 basis points for equity, dividend and balanced funds, 50 basis points for fixed income funds, and 25 basis points for money market funds.
> the launch of Series C coincides with new, lower minimum investment requirements for PH&N funds purchased through full-service advisors. Effective Nov. 17, 2008, the minimum initial investment for Series C or Series F units will be $1,000 per fund in nominee-name accounts. Previously, the minimum investment through the advice channel was $5,000 per fund.
> Series D units of PH&N funds will no longer be available for sale through third-party advisors and Series B fund units will no longer be available for sale. Advisors will generally be restricted to purchasing Series C and Series F units only.
Subject to regulatory approval, the changes will come into effect on Nov. 17.
Also, subject to regulatory approval, effective Dec. 1, PH&N may pay a trailing commission on assets invested in Series D units that are held through discount brokerage dealers.
PH&N said this change is expected to result in lower fees paid by many investors who choose to purchase these funds through discount brokerage dealers, as discount brokerage dealers that collect the trailing commission are expected to discontinue the practice of charging front-end sales fees. There is no change to the management fees of Series D fund units as a result of this trailing commission.
Investors can continue to purchase Series D fund units directly from PH&N with no trailing commission paid, the company said.
IE
PH&N introduces Series C funds for advisors
- By: IE Staff
- November 12, 2008 November 12, 2008
- 10:50