Three new funds from Templeton

Toronto-based Franklin Templeton Investments Corp. has introduced three new corporate class funds, which allow investors to switch among funds while deferring taxes until they redeem from the structure. They are Franklin Global Real Estate Corporate Class, Bissett U.S Focus Corporate Class structure and Franklin Templeton U.S Short-Term Yield Class. Franklin Global Real Estate Corporate Class fund seeks capital appreciation and income by indirectly investing in real estate sectors in countries around the world. The fund is managed by New York-based Franklin Templeton Institutional LLC and co-managed by Jack Foster, Boris Pialloux and David Levy. Bissett U.S Focus Corporate Class fund will indirectly invest in U.S securities that are selected based on a quantitative approach to produce long term capital growth with moderate risk. It will be co-managed by Jason Hornett and Garey Aitken. Franklin Templeton U.S Short-Term Yield Class fund uses forward contracts to provide a similar return to its reference fund, Franklin Templeton U.S Money Market Fund, and provides investors stability of income and the tax-efficiency of capital gains. Guy LeBlanc is the lead manager of the new Franklin Templeton U.S. Short-Term Yield Class fund. 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 6 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 commission for U.S Short-Term Yield Class is 0.25%; 1% for front-end sales of Global Real Estate and Bissett U.S Focus and 0.5% for deferred and low load options. Management fees for Global Real Estate and Bissett U.S Focus are 2% for A-class units and 1% for F-class units, for U.S Short-term Yield are 1% for A-class units and 0.75% for F-class units. Minimum investment is $500.

Mackenzie reopens fund

Toronto-based Mackenzie Financial Corp. reopened Mackenzie Cundill Recovery Fund to investors as of March 28. The fund had been closed to new retail subscriptions since April 2006 after it tripled in asset size in the prior 18 months. Mackenzie says that the global stock markets, which began to correct in 2007, have created numerous value and recovery opportunities and the fund’s ability to take in new money has increased substantially. James Morton, chief investment officer of London- based CIM Investment Management Ltd., manages the fund. Advisor commissions for front-end sales are 0-5%, 5% for deferred sales, or 2.5% for the low-load option. Redemption fees begin at 5.5% in Year 1 and zero after Year 7 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% in Year 1 to Year 7 and 1% thereafter for the deferred sales and 0.5% in Year 1 to Year 3 with 1% thereafter for the low-load option. Management fees are 2% for C-class units and 1% for F-class units. Minimum investment is $500.

Sun Life and CI

Toronto-based Sun Life Financial Inc. and CI Investments Inc. have introduced a lifetime withdrawal option on the SunWise Elite Plus segregated funds rider. The enhancement builds on the existing SunWise Elite Plus Guaranteed Minimum Withdrawal Benefit by providing guaranteed income for life. The guaranteed lifetime income can increase with resets every three years, which helps mitigate the risk of inflation eroding purchasing power, Sun Life says. SunWise Elite Plus income for life is an optional rider that will be available for both new and existing SunWise Elite contracts. It provides investors with guaranteed income for life, starting at age 65 or later, with potential for growth as investors can allocate up to 90% of their portfolio to equity investments. Investors can also have the flexibility of an income-deferral feature, which allows them to accumulate unused withdrawal room of up to 15%. In addition, SunWise Elite Plus provides investors with a 5% bonus on their guaranteed income for every year they do not make a withdrawal in the first 15 years following the initial deposit to the GMWB rider. Seven new funds are also being added to the SunWise Elite lineup. This brings the total to 54 funds. Minimum investment per policy is $25,000.

@page_break@Vancity invests in microfinance

Vancouver City Savings Credit Union has enhanced its Shared Growth term deposit by designating funds for investment in its local microfinance programs, including peer lending. A portion of the Shared Growth proceeds will now help micro-entrepreneurs, including new immigrants and refugees, people with disabilities, aboriginal people and others overcome the barriers to borrowing money created by lack of collateral, personal credit history and full-time employment. Shared Growth funds, currently amounting to $4.5 million, are invested in projects and programs with a high social or environmental value.

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