Toronto-based Sentry Investments Inc. has announced changes to its mutal fund lineup.
Specifically, the firm intends to begin paying certain operating expenses charged to its funds in return for a fixed administration fee on A-, T-, B-, BT-, F-, FT-, O- and X-class units of certain funds.
Under this arrangement, the projected management expense ratio (MER) of each participating class of each fund, calculated using the proposed fixed administration fee, will be the same or lower than its most recently published MER.
“Under the current practice, investors do not know the operating expenses of a fund until it releases its financial statements,” says Philip Yuzpe, president and CEO of Sentry Investments, in a statement.
“With fixed administration fees, Sentry investors will have the certainty of knowing what they are paying to invest in our funds, along with protection against increased costs, given that the management and administration fees cannot be increased without their approval,” he adds.
If approved, the change will occur Dec. 31.
Additionally, Sentry hopes to change the investment objective of its Sentry Canadian Resource Class on or about May 3. The change would allow the fund to invest in companies involved in the energy and natural resources sectored located anywhere in the world. To reflect the change, the fund would be renamed Sentry Resource Opportunities Class.
Lastly, Sentry announced the risk rating has lowered for Sentry Conservative Income