FrontierAlt launches bond fund

Toronto-based frontierAlt Investment Management Inc. has launched frontierAlt All Terrain Bond Fund, which will be managed by a team led by Robert Marcus at Majorica Asset Management Corp., also based in Toronto. The fund will invest primarily in government and stripped-coupon bonds, as well as selected foreign bonds. “We are currently at the beginning of a lower interest rate cycle, making it a good time to lock in the yields of long-term, high-quality bonds,” Marcus said in a media release. “In my opinion, the Bank of Canada and the U.S. Federal Reserve [Board] will not raise interest rates further because of deflationary pressures and a slowdown in the Canadian and U.S. economies, although the U.S. economy is expected to slow at a faster pace.” Front-end commissions are 0%-5%, with a 0.5% trailer. Management fees are 1.5% for Class A shares, or 1% for Class F shares. Minimum investment is $500.

Mackenzie lowers fees

Toronto-based Mackenzie Financial Corp. has lowered the management fees on several series of its Mackenzie Universal Global Future Capital Class funds. Effective immediately, the management fee on Mackenzie Universal Global Future Capital Class Series A, is 2%, down from 2.25%; and the fee on Series F is 1%, down from 1.2%.

GGOF launches principal-protected notes

Guardian Group of Funds Ltd. of Toronto has launched Bank of Montreal GGOF C.O.R.E. Protected Deposit Notes, which will be managed by Jones Heward Investment Counsel Inc. The notes are based on the performance of a fund portfolio that is intended to replicate the total return of GGOF Dividend Growth Fund, and are available in three classes. Total Return Class has a six-year term, and all distributions are notionally reinvested. Yield Class has a 7.5-year term and provides potential distributions, beginning in June 2007; the distribution rate will be reset every six months and equals 50% of the portfolio’s return, if any, during the preceding six months. R.O.C. Class also has a 7.5-year maturity and is suited to investors seeking regular monthly distributions as well as tax deferral; its distribution rate is the same as that of Yield Class. Redemption fees begin at 5.7% in Year 1 and decline to zero after Year 3. Commissions are 4.25%, with a 0.25% trailer, for Total Return Class; and 4.75%, with a 0.25% trailer, for Yield Class and R.O.C. Class. Management fees are 2.6%. Minimum investment is $2,000.

CIBC launches funds, makes name changes

CIBC Asset Management Inc. has introduced two new equity funds, CIBC Disciplined U.S. Equity Fund and CIBC Disciplined International Equity Fund, which will “allow investors to diversify their holdings globally while managing the volatility of their portfolios,” Toronto-based CIBC Asset Management’s president Steve Geist says. Both funds will be subadvised by U.S.-based Enhanced Investment Technologies LLC. Front-end commissions are up to 4%, with trailing commissions of up to 0.75%. Management fees are 1.75% for the U.S. fund and 2% for the international fund. Minimum investment is $500. In addition, the firm has launched CIBC Managed Monthly Income Balanced Portfolio, which offers exposure to securities across Canadian, U.S. and international markets. The managed portfolio program will be sold primarily through CIBC’s proprietary sales channels. Front-end commissions are up to 4%, with trailing commissions of up to 1.20%. Management fees are 2.05%. Minimum investment is $500. CIBC Asset Management has also changed the names of several existing CIBC mutual funds and U.S.-dollar-denominated managed portfolios. The new names are intended to reflect better the funds’ investment styles and portfolio compositions: CIBC Canadian Equity Fund, formerly CIBC Core Canadian Equity Fund; and CIBC Canadian Equity Value Fund, formerly Canadian Imperial Equity Fund. These changes will appear on relevant documents effective Oct. 3.

RBC caps O’Shaughnessy Canadian Equity

RBC Asset Management Inc. of Toronto has announced it will close RBC O’Shaughnessy Canadian Equity Fund to new purchases, effective Jan. 19, 2007. The fund has grown to almost $2 billion in assets, and closing it to new purchases will “provide the best opportunity for continued success in its investment approach,” the company says. Unitholders who have chosen to reinvest distributions automatically will continue to do so. Only purchases through pre-authorized investment plans established directly with RBC Asset Management before Jan. 19, 2007, will continue.

Mavrix completes fund merger

Toronto-based Mavrix Fund Management Inc. has announced it has completed the merger of Mavrix Balanced Income and Growth Trust Fund into Mavrix Canadian Income Trust Fund. Units of the former fund have been redeemed and unitholders have been issued their pro-rated share of Class A units issued to the fund in connection with the merger. The exchange ratio for the merger was calculated based on net asset value per unit at the close of business on Sept. 29, 2006. The fund’s regular monthly distribution will be paid to unitholders on Oct. 16, 2006, the company says.

@page_break@Compiled by Lara Hertel (lhertel@investmentexecutive.com).