Northern Rivers suspends redemptions
Toronto-based Northern Rivers Capital Management Inc. has temporarily suspended redemptions from Northern Rivers Innovation Fund LP for a period of up to two years in order to protect the capital of all limited partners in the fund. The fund invests in small-cap and private securities. Market forces over the past year have put these holdings under pressure, resulting in an increase in the percentage of illiquid assets in the portfolio in excess of normal levels, the company says. Northern Rivers says that permitting continued cash redemptions at this time could necessitate forced selling of securities by fund manager Hugh Cleland, who also manages Horizon Northern Rivers LP for JovFunds Management Inc. of Toronto.
PALTrak launches seg fund product
Toronto-based Morningstar Research Inc. has launched the Morningstar PALTrak Segregated Funds Module, which provides a single source for contract and fund-level data on more than 3,000 segregated funds. Life-licensed advisors and other financial services professionals in the insurance distribution channel can screen for and compare contract features and common fund attributes, in order to make the most suitable recommendations to their clients. The module allows advisors to provide concise, investor-friendly reports that simplify key contract features and fund attributes, including performance history and asset allocation. The module also provides advisors with the ability to screen for combinations of contract features, such as automatic and manual reset options and frequencies, maximum age allowed to purchase and guarantees on death and maturity.
New dividend fund from Desjardins
Lévis, Que.-based Federation des caisses Desjardins du Québec has introduced Desjardins Dividend Growth Fund, which aims to combine tax efficiency with the lesser volatility provided by dividend-producing stocks. The goal of the fund — solely composed of common stock — is to generate income and provide capital growth. In addition to Canadian equities, the new fund can also hold a maximum of 30% in foreign equities. Toronto-based Jarislowsky Fraser Ltd. will manage the fund. Advisor commissions are on a no-load basis; there is no front-end or deferred sales options. Trailing commissions are calculated at the end of each month on the average monthly units outstanding for each fund sold by the dealer, at 1/12 of 1%. Management fees are 1.87% for A-class units. Minimum investment is $1,000.
Scotia unveils INNOVA
Scotia Securities Inc., a division of Toronto-based Bank of Nova Scotia, has introduced Scotia INNOVA Portfolios, which provide exclusive investment-management expertise, enhanced performance potential and comprehensive portfolio diversification. The new managed portfolio program offers investors with assets exceeding $50,000 access to five portfolios, each with a strategic allocation to individual investment funds from Scotia Cassels Investment Counsel Private Client funds and the Pinnacle Program funds. The portfolios include Income Portfolio, Balanced Income Portfolio, Balanced Growth Portfolio, Growth Portfolio and Maximum Growth Portfolio. Investors can access the INNOVA program’s portfolios through domestic Scotiabank branches, ScotiaMcLeod Direct Investing and ScotiaMcLeod Inc., as well as through investment dealers and independent brokers, advisors and financial planners.
New DCA Fund at Manulife
Manulife Mutual Funds has added a new dollar-cost averaging fund to its current lineup of mutual funds. Manulife Dollar-Cost Averaging Fund is suited to investors looking for opportunities in the markets yet are unsure when to invest. Dollar-cost averaging is an investing technique intended to reduce the exposure to risk associated with making a single, lump-sum investment at the wrong time. An investment in Manulife Dollar-Cost Averaging Fund is automatically dollar-cost averaged over a 12-month period into one or more Manulife mutual funds. Investors have the potential to benefit, as more units can be purchased when prices are low and fewer units bought when prices are high. Manulife Dollar-Cost Averaging Fund will initially provide an investment return of 3.5% (annualized) until March 31. After this date, the return is expected to be equivalent to the rate of interest offered by Manulife Bank’s investment savings account. Advisor commissions for front-end sales are 0%-5%; 5% for deferred sales; and 2% 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 2 for the low-load option. Trailing commissions are 1% for front-end sales and the low-load option, and 0.5% for deferred sales. The fund does not pay any management fees. Minimum investment is $1,000.
@page_break@ Compiled by Clare O’Hara (cohara@investmentexecutive.com).