AIC launches four new funds

Burlington, Ont.-based AIC Ltd. has introduced four global specialty funds that will provide investors with exposure to growth opportunities in the real estate, banking, insurance and wealth-management subsectors: AIC Global Real Estate Fund, AIC Global Bank Fund, AIC Global Insurance Fund and AIC Global Wealth Management Fund. AIC Globe Real Estate Fund is sub-advised by New York’s Third Avenue Management LLC and managed by Michael Winer and Jason Wolf. The fund seeks long-term capital appreciation through exposure to companies in the real estate or related industries. The Global Bank, Global Insurance and Global Wealth Management funds are managed by AIC Investment Services and seek to maximize long-term capital growth by investing in equity securities of banking, insurance and wealth-management companies around the world. Advisor commissions for front-end sales are 0%-6%, 5% for deferred sales and 3% for the low-load option. Redemption fees begin at 6% in Year 1 and end at zero after Year 6 of the regular DSC schedule; for the low-load option, they are 3% in the first 18 months and end at zero after Year 3. Trailing commissions are 1% for front-end sales; 0.5% in Year 1, increasing to 1% after Year 7 for deferred sales; and 0.75% in Year 2, increasing to 1% after Year 3 for the low-load option. Management fees for AIC Global Real Estate Fund are 2.7% for A-class units and 1.7% for F-class units; fees for the Global Bank, Global Insurance Fund and Global Wealth Management funds are 2% for A-class units and 1% for F-class units.

Claymore money market ETF a first

Toronto-based Claymore Investments Inc. has introduced the first money market exchange-traded fund in North America. Claymore Premium Money Market ETF seeks to provide current income and liquidity consistent with short-term money market rates while preserving the value of the investor’s initial investment. The fund has an MER of 0.25% and invests primarily in high-quality, short-term debt securities, including treasury bills and promissory notes issued or guaranteed by Canadian governments or their agencies, bankers’ acceptances and commercial paper (excluding asset-backed commercial paper) issued by Canadian chartered banks, loan companies, trust companies and corporations.

New handle for bond fund

Toronto-based frontierAlt Funds Management Ltd. has announced that frontierAlt All Terrain Bond Fund has changed its name to frontierAlt Opportunistic Bond Fund, effective Feb. 11, 2008. The investment objectives of the fund, frontierAlt says, remain the same: to provide investors with superior investment returns, having regard for safety of capital, by investing mainly in fixed-income securities. frontierAlt has appointed Edward Jong as the lead portfolio manager of the fund. Jong has co-managed the predecessor fund since its inception in 2006 and has more than 17 years of investment experience, most recently as vice president of fixed-income with Majorica Asset Management Corp.

RBC and Manulife unveil PPNs

Manulife Financial Corp. and Royal Bank of Canada, both based in Toronto, have teamed up to launch a new series of principal-protected deposit notes that have access to world-class investment managers and provide exposure to equity markets. RBC Manulife Investments Global Balanced Plus Deposit Notes are issued by RBC and are tied to the performance of three funds: Mawer Investment Fund, Manulife Strategic Income Fund and Manulife Canadian Core Fund. The notes provide investors with exposure to global equities and fixed-income markets, with a 100% principal amount guarantee by RBC. Series 4,5 and 6 of the Global Balanced Plus Deposit Notes are available for purchase until April 4.

Dynamic Funds launches new portfolio

Toronto-based Goodman & Co. Investment Counsel Ltd., manager of Dynamic Mutual Funds Ltd.’s family of mutual funds, has launched DynamicEdge Portfolios, a wrap program that offers four asset-allocation options. The portfolios provide investors with access to a portfolio-management team and accommodates investors’ specific risk tolerance. The portfolios also provide diversification by asset class, region and management style. Advisors can benefit from flexible purchase options, systematic asset allocation and automatic rebalancing, says Goodman & Co. The four core portfolios available are: DynamicEdge Balanced Portfolio, designed for downside volatility for conservative investors; DynamicEdge Balanced Growth Portfolio, designed to focus on long-term capital growth for those who accept some volatility for eventual gains; DynamicEdge Growth Portfolio, which offers high long-term growth and reduced volatility through a mix of bonds and equities; and DynamicEdge Equity Portfolio, built exclusively on equities to maximize long-term capital growth for aggressive investors. Minimum initial investment is $10,000 per portfolio, with subsequent minimum investment of $100.

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