Toronto-based Mackenzie Financial Corp. has announced changes to three of its funds. Mackenzie Universal European Opportunities Fund has changed its name to Mackenzie Ivy European Fund and the Mackenzie Ivy team has been appointed portfolio manager of the fund. The Mackenzie Ivy team also has been given the portfolio-management duties for Mackenzie Universal European Opportunities Class. There will be modifications to the investment strategies of both these funds to align them with the investment approach of a third fund, Mackenzie Ivy European Class. In addition, Mackenzie Financial plans to merge Mackenzie Universal European Opportunities Class with Mackenzie Ivy European Class. The merger, which has been reviewed and approved by Mackenzie Financial’s independent fund review committee, will consolidate two funds that have similar investment objectives and the same portfolio manager. The merger is expected to take place in the first half of 2011, and unitholders of Mackenzie Universal European Opportunities Class will be provided with at least 60 days notice before the merger. The merger is conditional upon obtaining the approval of the unitholders of Mackenzie Ivy European Class. If approved, the merger is expected to be effective on or about March 29, 2011. The net result of these changes will leave two funds in existence: Mackenzie Ivy European Fund and Mackenzie Ivy European Class, both managed by the Mackenzie Ivy portfolio-management team.

Counsel creates an income product

Mississauga, Ont.-based Counsel Portfolio Services Inc. has launched Counsel Managed Yield Portfolio, a diversified income product that is designed to provide investors with regular income and the potential for long-term capital growth. The fund invests in a variety of fixed-income securities, including high-yield fixed-income, global fixed-income, Canadian dividend-paying equities and global real estate securities. Counsel will manage the portfolio. 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 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 commissions are 1% for front-end sales; 0.5% for the first six years of deferred sales, and 1% thereafter; and 0.5% for the first three years of low-load sales, and 1% thereafter. Management fees are 2.02% for A-class units and 0.95% for D-class units. (The latter are for use with fee-based accounts.) Minimum investment for A-class units is $1,000.

BlackRock’s ETF family grows

Toronto-based BlackRock Asset Management Canada Ltd. has expanded its exchange-traded fund family with the recent launch of iShares S&P/TSX North American Preferred Stock Index Fund (C$-hedged). This ETF will provide investors with an income-oriented product having geographically diversified exposure to preferred shares created by investing a portion of its assets in U.S. preferred shares and a portion in Canadian preferred shares. The ETF will hedge its currency exposure to the U.S. dollar and carry an annual management fee of 0.45%. The S&P/TSX North American preferred stock Canadian dollar-hedged index, which is the underlying index for the ETF, includes 226 U.S. securities and 119 Canadian securities (for a total of 345 securities, as of Oct. 31, 2010). Combining tracking of the two markets, says BlackRock, allows investors to take advantage of the U.S. preferred shares market, which currently yields significantly more return than the Canadian market, while maintaining the benefits of Canadian preferred stock exposure.

SEI terminates funds

Toronto-based SEI Investments Canada Co., manager of Enhanced Global Bond Fund and International Synthetic Fund, has announced that it intends to terminate the two funds on or about Jan. 18, 2011, following written notice to existing unitholders of the funds. Termination of the funds is contingent upon obtaining majority approval from unitholders. Once the funds have been terminated, units of both funds will no longer be available for purchase by new or existing unitholders. The decision to terminate the funds was driven by low asset balances, says SEI, which made it difficult to manage the funds efficiently in accordance with their intended investment strategies. Existing unitholders of both funds have the option to redeem or switch their investments to other SEI funds on any business day prior to the termination date.

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