Winnipeg-based Investors Group Inc. has expanded its portfolio lineup with three new funds and their corresponding corporate-class structures: Investors Core Canadian Equity Fund and Class, Investors Core U.S. Equity Fund and Class, and I.G. Putnam U.S. Growth Fund and Class. “Each new class will invest in units of its respective fund version and, therefore, will have exposure to the same investments,” says Pierre Lacroix, Investors Group’s manager of product utilization. Advisor commissions for the three funds and their corporate-class versions are up to 4.1% for deferred sales. Redemption fees begin at 5.5% in Year 1 and end at zero after Year 7 for the regular DSC schedule. Trailing commissions are up to 0.36%, based on the average monthly value of all qualified client assets for deferred sales and low-load sales; and up to 0.61% for deferred sales after the DSC schedule has ended. Management fees are 2%. There is no minimum investment; units can be purchased only if the investor household currently holds a minimum investment of $15,000 in any Investors Group funds. The exception is if the investor is already a member of an Investors Group plan and can invest in any class within a group plan account.
> O’Leary Funds adds to lineup
Montreal-based O’Leary Funds Management LP has launched a new fund and converted two closed-end funds — O’Leary Canadian Equity Income Fund and O’Leary Canadian Income Opportunities Fund — into open-end mutual funds. The company also has proposed merging O’Leary Canadian Equity Income Fund into O’Leary Canadian Income Opportunities Fund once it receives unitholder and regulatory approval for that merger. The new fund, O’Leary Conservative Income Fund, aims to generate income via monthly distributions and long-term capital growth by investing primarily in Canadian dollar-denominated fixed-income securities. The fund also may invest up to 40% of assets in other income-generating securities, such as dividend-paying equities, preferred shares and real estate investment trusts of mid- and large-cap Canadian issuers. Advisor commissions are 0%-5% for front-end sales; and 2% for the low-load option. Redemption fees begin at 2% in the first 18 months and end at zero after Year 3 for the low-load schedule only. Trailing commissions are 1% for front-end sales; and 0.5% after the second and third year of low-load sales, and 1% thereafter. Management fees are 1.75% for A-class units and 0.75% for F-class units. Minimum investment is $1,000.
BlackRock launches new ETF
Toronto-based BlackRock Asset Management Canada Ltd. has raised its count of fixed-income products with the introduction of a 12th exchange-traded fund. iShares DEX Floating Rate Note Index Fund focuses on generating returns, via a monthly income distribution, while limiting potential interest rate risk. The fund invests in a regularly adjusted portfolio of floating-rate bonds and follows the performance of the DEX FRN index, net of expenses. The DEX FRN index has a low duration of 0.13 years and consists of Canadian dollar-denominated, floating-rate bonds with an outstanding face value of $300 million or more and a remaining term to maturity of at least three months. Bonds in the index that later default or receive a downgraded rating of less than an A will be removed from the index 90 days afterward. According to BlackRock, floating-rate bonds are generally less exposed to interest rate risk than fixed-rate securities of similar maturity and quality. As an incentive to investors, the company will waive the fund’s management fee of 0.2% until June 30, 2012.
Canoe beefs up Go Canada! fund lineup
Calgary-based Canoe Financial LP has added five new funds to its lineup of Go Canada-branded mutual funds. Canoe Enhanced Income Class aims to generate income and the potential for capital appreciation by investing primarily in fixed-income products. Marc Goldfried, head of fixed-income at Toronto-based AEGON Capital Management Inc., is the fund’s portfolio manager. Canoe Equity Income Class, managed by AEGON’s head of equities, Stephen Carlin, also seeks income and has a target asset allocation of 80% in fixed-income products. Canoe Energy Income Class invests in equities and bond securities of companies in the Canadian oil and natural gas sector and their suppliers; that fund is managed by Canoe Financial senior portfolio manager Rafi Tahmazian. Canoe Capital Appreciation Class focuses on Canadian small- and medium-capitalization companies, but may also invest in foreign equities; James Rife and Bob Haber of Boston-based Haber Trilix Advisors LP are that fund’s subadvisors.
Compiled by Olivia Li (oli@investmentexecutive.com).