Toronto-based Sentry Investments Inc. has cut management fees to certain series within its mutual fund lineup in response to consultation with the financial advisor community and a review of pricing practices within the mutual fund industry.
The lower fee structure is applicable to Series A/T securities, purchased with the front-end option, and Series F/FT securities, according to the firm’s announcement released on Tuesday.
The change, which is effective immediately, comes through a combination of fee discounts, a reduction of the management fee retained by Sentry as manager and a reduction to dealer compensation on select funds.
“Sentry has always been focused on delivering superior long-term, risk-adjusted returns for investors,” says Sean Driscoll, Sentry’s CEO, in a statement. “We are now providing access to our disciplined investment process and award-winning funds with more competitive fees. We are confident this announcement will be well received by our advisor and investor clients.”
Other fee changes include extending Sentry’s automatic preferred pricing program to investors who purchase Series A/T securities under the front-end option and those who purchase Series F/FT securities.
Sentry is also increasing the fee discounts across the asset tier levels for each fund, which will now be applied back to the first dollar invested, once an investor qualifies for a discount. These enhancements apply to Series P/PT, F/FT, PF/PFT and O. The change will also apply to Series A/T securities, which were purchased with the front-end option.
And household account linking is now being offered to investors holding Series A/T securities, with the front-end option, and Series F/FT. This program allows investors within the same household to aggregate their assets across multiple Sentry accounts in order to receive reduced management fees or satisfy applicable investment minimums.
The asset manager is also reviewing its mutual fund lineup in order to simplify the number of mutual fund series offered, with the goal of making it easier for advisors to navigate the firm’s products and obtain the best possible pricing for clients, according to Sentry’s announcement.