Toronto-based Mackenzie Financial Corp. has announced changes to the investment strategy of Mackenzie Sentinel Corporate Bond Fund. The company will amend the fund’s current investment strategy to allow the fund to invest up to 49% of its assets under management in foreign securities, an increase from the current limit of 30%. The change was made to provide the portfolio manager with greater flexibility to pursue investment opportunities for the benefit of investors in the fund.
New PowerShares funds from Invesco Trimark
Toronto-based Invesco Trimark Ltd. has introduced three new PowerShares funds that will provide investors with tax-efficient, fixed-income investments or diversified asset-allocation strategies. PowerShares Tactical Canadian Asset Allocation Fund invests in a portfolio of PowerShares funds and exchange-traded funds to provide access to Canadian equities, bonds and preferred shares. PowerShares Tactical Bond Fund invests in a portfolio of PowerShares funds and ETFs that hold government, corporate and real-return bonds; it is for registered accounts only. PowerShares Tactical Bond Capital Yield Class is a tax-efficient, fixed-income product that seeks to provide returns similar to those of PowerShares Tactical Bond Fund (before fees and expenses). Invesco Trimark’s global asset-allocation team will manage that fund. Advisor commissions are 0%-5% for front-end sales. Trailing commissions are 1% for front end sales for the Tactical Canadian Asset Allocation Fund, and 0.5% for the Tactical Bond and Tactical Bond Capital Yield Class funds. Management fees are 1.5% for A-class units and 0.5% for F-class units for Tactical Canadian Asset Allocation Fund; 0.85% for A-class units and 0.35% for F-class units for the Tactical Bond and Tactical Bond Capital Yield Class funds. Minimum investment is $500.
New fund for income-seeking investors
Toronto-based Northwest & Ethical Investments LP has introduced Northwest Tactical Yield Fund, which is designed to meet the needs of income investors wanting a higher yield than obtained from traditional income investments. The fund will be managed by Iowa-based Aviva Investors North America Inc., while Louisville, Ky.-based River Road Asset Management will be co-manager on a portion of the fund. The fund offers investors exposure to a wide range of high-yield securities, including but not limited to corporate bonds, government bonds, dividend-paying shares, real estate investment trusts and income trusts — all without geographical constraints. The fund manager will be able to vary the asset mix of the fund throughout the market cycle. Advisor commissions are 0%-5%for front-end sales; 5% for deferred sales; 1% for the low-load option 1; and 2.5% for the low-load option 2. Redemption fees begin at 6% in Year 1 and end at zero after Year 6 for the regular DSC schedule; begin at 1.5% in Year 1 and end at zero after Year 2 of the low-load 1 schedule; or begin at 3% in Year 1 and end at zero after Year 3 of the low-load 2 schedule. Trailing commissions are 1% for front-end sales and the low-load 1 option; 0.5% for deferred sales; and 0.5% during the first three years of the low-load 2 option and up to 1% thereafter. Management fees are 2% for A-class units and 0.95% for F-class units. Minimum investment is $500.
Dynamic Funds unveils fixed-income fund
Toronto-based Dynamic Mutual Funds Ltd., managed by Goodman & Co. Investment Counsel Ltd., has launched Dynamic Aurion Total Return Bond Fund, a fixed-income fund that seeks to provide income and capital returns from an actively managed, diversified portfolio of primarily Canadian fixed-income securities. A tax-efficient corporate-class version of the fund is also available for non-registered accounts. The fund will invest primarily in investment-grade corporate bonds, but may also invest in other forms of debt and fixed-income securities and debt-like instruments, including but not limited to federal and provincial government bonds, real-return and inflation-protected bonds, certain high-yield bonds and other securities with a high level of current income, such as income trusts, real estate investment trusts, convertible bonds and hybrid securities. The trust version of the fund currently pays a monthly distribution with an initial yield of 5%, which is fixed but not guaranteed and may change at any time at the fund manager’s discretion. Advisor commissions are 0%-5% for front-end sales; 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 7 for the regular DSC schedule; or begin at 3% in the first 18 months and end at zero after Year 3 for the low-load option. Trailing commissions are 0.75% for front-end sales; 0.3% for deferred sales; and 0.3% for the first three years of low-load sales and 0.75% thereafter. Management fees are 1.5% for A-class units and 0.75% for F-class units. Minimum investment is $500.
Compiled by Clare O’Hara (cohara@investmentexecutive.com).
Changes to corporate bond fund strategy
New PowerShares funds from Invesco Trimark
- By: Clare O’Hara
- September 27, 2010 October 30, 2019
- 15:39