Sprott launches gold fund

Toronto-based Sprott Asset Management Inc. has added Sprott Gold Bullion Fund to its lineup. The fund is targeted at inves-tors who are looking for exposure to the capital-appreciation potential of gold, want to maintain a high level of investment liquidity and have a medium tolerance for risk and volatility. The fund will invest primarily in unencumbered, fully allocated gold bullion, permitted gold certificates and/or closed-end funds for which the underlying interest is gold. The Sprott fund may also invest a portion of its assets in cash, money market instruments and/or treasury bills and is expected to be eligible for registered plans; it will be managed by the SAM investment team. Advisor commissions are 0%-2% for front-end sales, and trailing commissions are 0.3%. The fund is not offered with a deferred sales commission. Management fees are 0.8% for A-class units and 0.5% for F-class units. Minimum initial investment is $5,000; for subsequent investments, $500.

Management changes at AIC

Jonathan Wellum, CEO and chief investment officer with Toronto-based AIC Ltd., has taken over portfolio management responsibilities for AIC Value Fund. Wellum replaces Pat Naccarato, former vice president and portfolio manager, who left AIC to join the Canada Pension Plan Investment Board. The corporate-class version of the fund will also be managed by Wellum, who will work closely with AIC’s financial services team of Christopher Lowe, Greg Placidi, James Dancy and research analyst Scott Lamb. Wellum is also co-manager of AIC American Advantage Fund, which focuses on U.S.-based financial services companies, and was previously the portfolio manager of AIC Value Fund. Naccarato has also stepped away from co-management responsibilities for AIC Global Premium Dividend Income Fund, Copernican International Dividend Income Fund and AIC Global Premium Dividend Income Corporate Class. These funds will continue to be managed by the AIC financial services team, as well as by Drago Berbecel. In addition, AIC has temporarily reduced management fees on its money market funds. The changes are in response to several interest rate cuts in Canada and the U.S. The management fees on AIC Money Market Fund, AIC U.S. Money Market Fund and AIC Money Market Corporate Class will be temporarily reduced to 0.75% from 1%. On some series of AIC money market funds, AIC pays dealers trailer fees from the management fees collected. The trailer fees will also be proportionately reduced on a temporary basis.

New Shariah-compliant fund

Toronto-based Global Prosperata Funds Inc. has launched the Shariah-compliant Global Iman Fund. Targeted at volatility-weary investors, the fund focuses on socially responsible investing and allows individuals to invest based on their personal beliefs. The company says the fund provides Canadians with a more stable investment option because it does not engage in financial leveraging, short-selling, derivatives or investing in financial services firms such as banks and insurance companies. Investing in companies around the world, the fund avoids the so-called “sin sectors” — alcohol, tobacco, firearms and gambling. The fund is eligible for RRSPs, RRIFs, non-registered plans and tax-free savings accounts. RESP eligibility is pending. Advisor commissions are 0%-5% for front-end sales, 5% for deferred sales and 2% for the low-load option. Redemption fees begin at 5.75% in Year 1 and end at 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% for the first seven years of deferred sales and 1% thereafter, and 0.75% for the first three years of low-load sales and 1% thereafter. Management fees are 2.5% for A-class units and 1.5% for F-class units. Minimum investment is $500.

U.S. health-care coverage for Canadians

Toronto-based illnessPROTECTION.com Inc. has launched its ELITE U.S. HealthcareTM insurance product, which provides timely access to U.S. medical centres, including the Cleveland Clinic, Sloan-Kettering, Mayo Clinic and Johns Hopkins, in the event of any illness or injury for which there is a wait time for treatment in Canada. The policy covers up to US$5 million for treatment and travel costs, and is available to Canadians only. ELITE U.S. HealthcareTM provides a rapid second opinion, no-wait access to treatment and a personal case co-ordinator to help patients and their families navigate through diagnosis, treatment and recovery. With no waiting period and a lifetime limit of US$5 million, coverage can be used for multiple occurrences by individuals ranging in age from 60 days to 74 years. Medical expenses and business-class travel for the insured and a traveling companion are also covered. ELITE U.S. HealthcareTM insurance is underwritten by Royal & Sun Alliance Insurance Co. of Canada and administered by Global Excel Management Inc., the 24/7 medical assistance team of Expert Travel Financial Security Inc. The product can be purchased with deductible options of US$5,000 or US$10,000 per occurrence.

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