PRODUCT WATCH
> TDAM becomes fund’s portfolio advisor
Toronto-based TD Asset Management Inc., manager of TD Mutual Funds, will assume portfolio-management responsibilities for TD International Growth Fund, effective on or about Nov. 12, replacing Philadelphia-based Echo Point Investment Management LLC. The fund will be managed by Charles Edwardes-Ker, vice president and director of TDAM. Edwardes-Ker has more than 25 years of experience in equities investing. He currently leads the active international equities team and is the lead manager of TD Strategic Yield Fund. The investment objective of TD International Growth Fund will not change; however, the approach to managing the fund will change to reflect the proprietary research the portfolio manager will use to identify investment opportunities in high-quality companies.
> First Asset unveils new ETFs
Toronto-based First Asset Investment Management Inc. has added two exchange-traded funds (ETFs) to its lineup: First Asset Morningstar U.S. Momentum Index ETF and First Asset Morningstar U.S. Value Index ETF. The new offerings have been designed to replicate, to the extent possible, the performance of the Morningstar U.S. momentum target 50 index and the Morningstar U.S. value target 50 index, as applicable, net of expenses. First Asset Morningstar U.S. Momentum Index ETF will provide investors with a diversified exposure to the top 50 U.S.-based equities that demonstrate positive momentum in earnings and price; First Asset Morningstar U.S. Value Index ET will provide investors with diversified exposure to the top 50 U.S.-based equities that are considered to be “good value” based on characteristics such as low price/earnings and low price/cash-flow ratios. These ETFs will be denominated in Canadian dollars and offered in hedged and unhedged versions to provide investors with the flexibility to choose whether they want exposure to the U.S. currency. The ETFs also will be offered in A-class units in both hedged and unhedged versions. In addition, First Asset has introduced unhedged common and A-class units of First Asset Morningstar U.S. Divided Target 50 Index ETF, which seeks to replicate the performance of the Morningstar U.S. dividend target 50 index.
> New Dynamic fund aims at high-income
Dynamic Funds, managed by Toronto-based GCIC Ltd., has introduced Dynamic Premium Yield Fund. This fund seeks to achieve high income and long-term capital appreciation, primarily by writing put options on equities securities to collect premiums, investing directly in equities securities or writing call options on these securities. The fund aims to select quality equities securities based on fundamental analysis and will use a variety of options strategies to generate income, capitalize on pricing discrepancies or limit portfolio volatility. Oscar Belaiche and John Harris, both fund portfolio managers with Dynamic’s equities income team, will co-manage the fund. Damian Hoang, senior derivatives strategist with GCIC, will be working closely with both portfolio managers. Advisor commissions are 5% for front-end sales, 0%-5% for deferred sales and 3% 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 the first 18 months and end at zero after Year 3 of the low-load schedule. Trailing commissions are 1% for front-end sales; 0% for the first year of low-load sales, and 1% thereafter; and 0.5% for deferred sales. Management fees are 1.85% for A-class units and 0.85% for F-class units. Minimum investment is $500.
> Standard Life alters funds’ risk ratings
Montreal-based Standard Life Mutual Funds Ltd. (SLMF), manager of Standard Life Mutual Funds, has changed the risk rating associated with 12 of its funds. The Investment Funds Institute of Canada established a set of guidelines for determining risk ratings based primarily upon the variability of returns for a mutual fund. Based on these guidelines, SLMF determined the following changes should take place: Standard Life Diversified Income Fund will move from “low risk” to “low to medium risk”; Standard Life U.S. Dividend Growth, Standard Life U.S. Dividend Growth Class, Standard Life Global Dividend Growth and Standard Life Global Dividend Growth Class funds will move from “low to medium risk” to “medium risk”; Standard Life Canadian Equity Growth, Standard Life Canadian Equity Growth Class, Standard Life Canadian Equity Value, Standard Life Canadian Equity Value Class and Standard Life European Equity funds will move from “medium risk” to “medium to high risk.” Standard Life Canadian Small Cap Fund and Standard Life Canadian Small Cap Class Fund will move from “medium to high risk” to “high risk.”
Compiled by Clare O’Hara (cohara@investmentexecutive.com).