Toronto-based Franklin Templeton Investments Corp. has launched Bissett Income Trust Fund, which will focus on the large-cap
segment of the income trust market with an aim to providing investors with regular income. The fund is a viable option for investors who are looking to gain a conservative exposure to the income trust market, says Leslie Lundquist, portfolio manager, Bissett & Associates Investment Management Ltd., in Calgary. “We’ll be investing in the larger, more mature, more stable trusts in the market rather than trying to benefit from the hot IPO market we’ve seen over the past year or buying up smaller, more aggressive names that haven’t proven themselves,” says Lundquist. “We’re trying to make this a viable option for investors who perhaps haven’t been in the trust market, realize they would like some exposure but want to get into it cautiously.” The fund will invest in income trusts with a market capitalization of more than $500 million for oil and gas royalty trusts and real estate investment trusts, and of more than $200 million for all other trusts, including utilities and pipelines. Front-end commissions are up to 6%, negotiable with the client. Low-load commissions are 1%, with a 2% redemption fee if sold within two years. Trailing commissions for both front-end and low-load purchases are 1%. If purchased on a DSC basis, commissions are 5%, with redemption fees beginning at 6% in Year 1 and ending at 3% in Year 6. Trailing commissions are 0.5%. Management fees are 2% for A-class shares and 1% for F-class shares. Minimum investment is $500.