Middlefield rolls funds into Yieldplus Income



Toronto-based Middlefield Group has announced the merger of five funds. Yieldplus Income Fund, Maxin Income Fund, Core IncomePlus Fund, Pathfinder Income Fund and MG Dividend & Income Fund will all merge into Yieldplus Income Fund. Yieldplus will be co-advised by Toronto-based Guardian Capital LP and Middlefield Capital Corp. The merger will provide a fund that offers a larger market capitalization, increased trading liquidity and lower operating costs, says Middlefield. Upon completion of the merger, Yieldplus will increase its monthly distribution rate to 10¢ a unit from 8¢. The new distribution amount equates to an annual rate of $1.20 a unit, which is the continuing fund’s target distribution rate for the next year. The merger is expected to be completed Sept. 27.



Sprott launches small-cap equity fund



Toronto-based Sprott Asset Management has launched Sprott Small-cap Equity Fund, managed by Allan Jacobs and Peter Imhof. The fund is aimed at clients looking for long-term capital growth by investing primarily in small-capitalization equity and equity-related securities, with some exposure to global small-cap equities. Jacobs and Imhof will take a bottom-up approach to investing, focusing undervalued companies with strong management teams and financial strength. Advisor commissions for front-end sales are 0%-2%, with no deferred sales or low-load sales options. There are no redemption fees payable upon redemption of the fund’s units (subject to a short-term trading fee, when applicable). Trailing commissions are 1%. Management fees are 2.5% for Series A and 1.5% for Series F. Minimum investment is $5,000.



BluMont purchases Halcyon funds



Toronto-based BluMont Capital Corp. has made an agreement with Hamilton, Ont.-based Burgeonvest Securities Ltd. and Halcyon Fund Management Inc. to transfer the administrative management contracts of Halcyon Hirsch Opportunistic Canadian Fund, Halcyon Hirsch Opportunistic Tactical Allocation Fund and Halcyon Canadian Demographic Fund to BluMont from Halcyon. BluMont previously was a subadvisor to Burgeonvest Securities. “This will be much simpler for people to assess and understand because it has simplified who the manager is — BluMont,” says Mario Frankovich, president and CEO of Burgeonvest Securities. For the transfer, Halcyon will receive cash on closing and deferred consideration based on assets under management in the Hirsch funds. BluMont intends to merge Halcyon Canadian Demographic Fund and Halcyon Hirsch Opportunistic Canadian Fund. Halcyon and Burgeonvest Securities are both subsidiaries of Burgeonvest Financial Corp. BluMont is a wholly owned subsidiary of Toronto-based Integrated Asset Management Corp.



Franklin Templeton launches fund, portfolio



Toronto-based Franklin Templeton Investments Corp. has launched Franklin U.S. Core Equity Fund, a growth fund concentrated in U.S. stocks. Also, Franklin Templeton Global Balanced Portfolio has been added to the Quotential program. Franklin Templeton Global Balanced Portfolio is also offered in a corporate-class version for Canadians investing outside their registered accounts. The portfolio will maintain a balance between current income and long-term capital appreciation by investing in mutual funds with a global focus, the company says. Advisor commissions for front-end sales are 0%-6%, 5% for deferred sales or 2.5% for the low-load option. Redemption fees begin at 6% in Year 1 and end at zero after Year 5 for the regular DSC schedule, or begin at 3% in Year 1 and end at zero after Year 3 of the low-load schedule. Trailing commissions are 1% for front-end sales, 0.5% for the first six years of deferred sales and 1% thereafter, and 0.5% for the first three years of low-load sales and 1% thereafter. Management fees are 2% for A-class units and 1% for F-class units. Minimum investment is $500.



Covington acquires Financial Industry fund



Covington Group of Funds has received shareholder approval for Covington Strategic Capital Fund Inc. to acquire the assets of Financial Industry Opportunities Fund Inc. CSCF will assume approximately $5.1 million of FIOF assets in the acquisition. Covington says the acquisition will provide reduced costs, improved liquidity, larger asset base to support investment opportunities, larger position in key holdings and additional portfolio diversification to investors. Both funds are labour-sponsored funds.



Goodman and Co. fund closes IPO



Toronto-based Goodman & Co. Investment Counsel Ltd. has completed its initial public offering of DPF India Opportunities Fund at its maximum offering size of $250 million. At closing, the fund issued 25 million units at $10 a unit. Minimum investment is $1,000.



Compiled by Clare O’Hara (cohara@investmentexecutive.com).

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