Toronto-based Sentry Investments Inc. has lowered its management fees across its suite of funds. The fee reductions will be accomplished through a combination of fee discounts, reduced management fees charged by Sentry as portfolio manager, and reduced dealer compensation on certain funds. Investors with less than $100,000 in assets held in a fund who purchased A-class units of a fund on a front-end sales basis can expect to see a fee reduction of about 32 basis points (bps) for equity funds, 10 bps for fixed-income funds, 12 bps for managed asset portfolios, and five bps for balanced funds. Investors with assets of more than $100,000 may be eligible for additional fee discounts. Sentry intends to transfer investors from one series of funds to another in order to implement these fee reductions. For example, Series A units under a back-end option will be redesignated as a new Series B or corresponding fixed-rate distribution series. As well, Series P and PF units will be redesignated as their corresponding Series A and F units. The series transitions will not result in a taxable event for investors. Appropriate approvals are pending for all changes; if approved, the changes will take effect in April. Sentry also is offering its Preferred Pricing Program to investors who purchase units in Series A and Series F funds on a front-end option. This program will reduce prices for investors as their assets grow, without any necessary paperwork or action necessary by them or their financial advisor. As well, investors holding front-end sales Series A units or Series F securities of Sentry funds now can access “household account linking,” a process that allows investors to amalgamate assets held in multiple accounts and thereby reduce management fees or meet investment minimums. Sentry manages more than $18 billion in assets for more than 500,000 investors. For full details, visit www.sentry.ca.
(fcollie@investmentexecutive.com).
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