TD adds two more fund series

Toronto-based TD Asset Management Inc. has announced two new series of TD Monthly High Income Fund: TD North American Dividend Fund and TD Global Equity Advantage Portfolio. The funds are now available in A-class and F-class shares. “With the addition of these series, our product offering will provide investors with a broader range of investment opportunities,” Tim Pinnington, president of TD Mutual Funds, says. These funds were previously only offered in investment-class and institutional-class series.

Connor Clark & Lunn acquires Legacy assets

Toronto-based investment-management firm Connor Clark & Lunn Private Capital Ltd. has reached an agreement with Russell Investments Canada Ltd. to acquire all assets of Russell’s Legacy Managed Accounts program. Russell and CC&L will work together to ensure a smooth transition of the assets, which will fall under the full responsibility of CC&L as of April 1, 2007. CC&L, a subsidiary of CC&L Financial Group, will work with its affiliate, CC&L Managed Portfolios Inc., to execute an investment strategy. “This acquisition fits Russell’s overall strategy to focus on its core business, and we see it as an opportunity to promote our suite of products and services for investors,” says Craig Swistun, CC&L Private Capital’s vice president of marketing and development in Toronto. There will be no immediate changes to advisor compensation or client fees as a result of the transition, Swistun says.

AGF severs ties with ING, keeps one manager

AGF Funds Inc. has ended its subadvisory relationship with ING Investment Management Inc., formerly the manager of AGF Dividend Income Fund. The fund’s former manager, Marc-André Robitaille, has resigned from ING and has agreed to join AGF in what the latter company calls a “strategic alliance” that will eventually see Robitaille resume his role of lead manager of the fund. “Marc-André has done a great job with the fund,” says AGF president Randy Ambrosie. “But we evaluated our relationship with ING and thought the two organizations were going in differ-ent directions, and that we were better positioned to have a long-term strategic relationship with Marc-André directly.” Robitaille will not become an AGF employee, but will enter into an exclusive arrangement with AGF in which he will manage the dividend income fund and possibly others, Ambrosie says. Robitaille has managed the fund since its inception in 2003, when it was known as ING Dividend Income Fund. AGF’s chief investment officer, Mar-tin Hubbes, will manage AGF Dividend Income Fund in the interim.

Brandes rolls out corporate bond fund

Toronto-based Brandes Investment Partners & Co. has introduced Brandes Corporate Focus Bond Fund, which will invest primarily
in U.S. dollar-denominated fixed-income securities. The fund can invest up to 75% in securities rated below investment grade, and
is available in both hedged and unhedged classes. “U.S. corporate bonds have a low correlation to many other asset classes, in particular to a typical Canadian government fixed-income portfolio,” says Alasdair Hayes, Brandes’ executive vice president of sales. The fund is available on a front-end basis only, with a 0.5% trailing commission. Management fees are up to 1.15% for A-class shares,
or 0.65% for F-class shares. Minimum investment is $5,000.



RBC rounds out Select Portfolios lineup

RBC Asset Management Inc. has added RBC Select Aggressive Growth Portfolio to its Select Portfolios lineup. Select Aggressive Growth invests in a mix of underlying RBC Canadian equity funds (35%), RBC U.S. equity funds (35%) and RBC international equity funds (30%). Select Portfolios already has portfolios in place for conservative, balanced and growth investors. The aggressive growth portfolio is co-managed by Jennifer McClelland, RBC’s vice president and senior portfolio manager, and senior vice president John Varao. Front-end commissions are 0%-5%, or 5% for de-ferred sales and 1% for low-load sales. Redemption fees begin at 6% in Year 1, falling to zero after Year 6 of the DSC schedule, or 2% in Year 1 and zero after Year 2 of the low-load schedule. Trailing commissions are 1% for front-end and low-load sales, and 0.25% for deferred sales. Minimum investment is $5,000.

GGOF brings out second PPN series

Toronto-based Guardian Group of Funds Ltd. has rolled out Bank of Montreal GGOF C.O.R.E. Protected Deposit Notes High-Yield Bond R.O.C. Class Series 2, based on the performance of GGOF High-Yield Bond Fund. Available until March 2, the notes will potentially make monthly distributions in the form of return on capital, a more tax-friendly distribution than interest income, the company says. “High-yield bonds have low correlations, not just with investment-grade bonds but with other income-generating assets such as income trusts and dividend-paying stocks,” GGOF CIO Gavin Graham says. “Adding high-yield bonds allows the potential to generate positive returns in almost any market.” Advisor commissions are 2.5% and management fees are 2.1%. Minimum investment is $2,000.

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