Phillips, Hager & North Investment Management Ltd. (PH&N) today announced the launch of two new fund series for use by financial advisors, planners and discount brokers in their clients’ portfolios.
Series B units, which will pay trailers, and Series F units will be available beginning July 3.
“These new series are designed to give investors more choice,” says John Montalbano, president of PH&N. “We recognize that many investors choose to work with their own trusted advisor, and want access to that advice as well as PH&N’s low-fee funds. These investors will now have more low-fee fund options available to them through their advisors.”
The PH&N Series B units will pay a trailer to advisors as follows:
- 10 basis points on money markets funds;
- 25 basis points on fixed income (bond) funds; and
- 50 basis points on equity and balanced funds.
Even with these trailers, PH&N’s Series B fund units will have management expense ratios (MERs) much lower than the industry average — in some cases, 50% less.
As an example, based on the 2006 MER for PH&N’s A-Series fund units plus the trailer, the PH&N Bond Fund Series B would have an MER of approximately 0.84%, as compared to a Globefund category average of 1.72%.
The PH&N Balanced Fund Series B would have an MER of approximately 1.38%, as compared to a category average of 2.67%. The PH&N Dividend Income Fund Series B would have an MER of approximately 1.64%, as compared to a category average of 2.32%. (These are examples only, and may not reflect actual 2007 MERs.)
PH&N’s Series A fund units, and the firm’s services to direct clients, remain unchanged. While PH&N is well-known as a direct seller, Montalbano points out that “Our firm has never been against advice; we simply oppose high fees.”
PH&N’s Series F fund units will make it easier for fee-based advisors to offer their clients the choice of investing in PH&N funds. The Series F units are virtually identical to PH&N’s Series A units, but are simply coded “F” to facilitate their use by advisors who require this labelling.
Also effective July 3, PH&N will lower the minimum investment for investors who purchase PH&N funds through an outside advisor or discount broker (with the exception of client-name accounts). For these clients, a minimum investment of $5,000 per fund will apply, with a subsequent minimum transaction of $100.
For investors who deal with PH&N directly, a minimum household investment of $25,000 will continue to apply.
Currently, over 6,000 advisors hold PH&N funds in their clients’ portfolios. PH&N has a dedicated Advisor Support Team that can be reached at 1-877-608-6284.
PH&N has over $67 billion in assets under management, including $20 billion in mutual fund assets.