Toronto-based Fidelity Investment Canada ULC has appointed two new portfolio managers and added two products to its family of funds. Daniel Dupont and Don Newman have taken over management duties from Cecilia Mo on Fidelity NorthStar Fund and Fidelity Dividend Plus Fund, respectively. The new funds are Fidelity Monthly Income Class and Fidelity Canadian Large-Cap Class. Fidelity Dividend Plus Fund invests in equities and fixed-income securities, which may include real estate investment trusts, high-yield securities, emerging-market debt securities and lower-quality commercial mortgage-backed securities. Meanwhile, Fidelity Canadian Large-Cap Class seeks long-term capital growth by investing primarily in Canadian and international mid- and large-cap companies. For these new funds, advisor commissions are 0%-5% for front-end sales, 4.9% for deferred sales, 1% for the first low-load option and 2.5% for the second low-load option. Redemption fees begin at 6% in Year 1 and end at zero after Year 6 for the regular DSC schedule; at 2% in Year 1 and end at zero after Year 2 of the first low-load schedule; or at 3% in Year 1 and end at zero after Year 3 of the second low-load schedule. Trailing commissions are up to 1% for front-end sales, up to 0.5% for deferred sales, up to 1% for the first low-load option and up to 0.5% for the second low-load sales option. Management fees for Fidelity Monthly Income Class are 1.85% for A-class units and 0.5% for F-class units. Management fees for Fidelity Canadian Large-Cap Class are 2% for A-class units and 1.85% for F-class units. Minimum investment is $500.
Sprott unveils corporate-class funds
Toronto-based Sprott Asset Management LP’s newly launched mutual fund corporation, Sprott Corporate Class Inc., has introduced eight share classes, allowing investors to switch funds without incurring taxes. Seven of the share classes are modelled after existing Sprott funds; the other is a new fund, Sprott Resource Class. The new fund seeks long-term capital growth and invests primarily in equities and equity-related securities of Canadian and international companies that are directly or indirectly involved in the natural resources industry. Paul Wong manages the fund’s overall allocations to companies and resources subsectors. Rick Rule has been appointed as the fund’s investment strategist. Advisor commissions are 0%-5% for front-end sales, and 3% for the low-load option. Redemption fees begin at 3% in Year 1 and end at zero after Year 3 for the low-load schedule only. Trailing commissions are up to 1% for both front-end and low-load sales. Management fees are 2.5% for A-class units and 1.5% for F-class units. Minimum investment is $1,000.
Fund merger at Connor Clark & Lunn
Toronto-based Connor Clark & Lunn Capital Markets Inc. has completed the merger of Connor Clark & Lunn Global Financials Fund II with Focused Global Trends Fund after receiving unitholder approval. The continuing fund, Focused Global Trends Fund, has been renamed Connor Clark & Lunn Financial Opportunities Fund. Its fees and commissions remain unchanged, although the investment objectives and investment strategy have been amended. The fund intends to provide opportunities for capital appreciation by investing in a portfolio of global financial services companies. The former portfolio manager of Focused Global Trends Fund, Guy De Blonay from Jupiter Asset Management Ltd., a London-based fund-management company, has been retained for the merged fund.
More ETFs from Jovian Capital Corp.
Toronto-based Jovian Capital Corp. and its subsidiaries, Horizons Exchange Traded Funds Inc. and AlphaPro Management Inc., have launched two new exchange-traded funds and added A-class units to eight existing ETFs. The new ETFs, Horizons Enhanced Income U.S. Equity ETF and Horizons Enhanced Income International Equity ETF, use a covered-call strategy on U.S. and international stocks. Management fees for both are 1.4% on A-class units. In addition, A-class units have been introduced on the following: Horizons Dividend ETF, Horizons North American Value ETF, Horizons North American Growth ETF, Horizons Balanced ETF, Horizons Corporate Bond ETF, Horizons Preferred Share ETF and Horizons Floating Rate Bond ETF. Management fees are 0.75% for all A-class units — except for those of Horizons Preferred Share ETF and Horizons Floating Rate Bond ETF, for which management fees are 0.5%.
Compiled by Olivia Li (oli@investmentexecutive.com).