Toronto-based Natixis Investment Managers Canada LP will implement several changes to its mutual fund offering in an effort to streamline and improve the experience for investors and advisors, the company announced on Monday.
These changes include:
- Implanting a simplified and lower-priced fund lineup for fee-based investors by capping, reducing the management fees of and consolidating and renaming certain fee-based series;
- eliminating the tax management fee;
- adding U.S. Dollar purchase options to certain funds;
- eliminating the deferred sales charge (DSC) and low load sales charge (LL)purchase options;
- changing the eligibility requirement for Series I securities;
- changing the risk rating for certain funds; and
- changing the distribution rates of certain funds.
Natixis is implementing a flat-fee structure that aims to eliminate the need for tier movements for investors holding fee-based series (Series F and Series HF) of its mutual funds Following the changes, investors in Series F securities of the Natixis Funds will receive the lowest fee available for fee-based series without regard to account size.
Effective immediately, the management fees associated with Series F securities of certain Natixis Funds will be reduced by an amount between 5 basis points and 25 basis points.
Effective June 5, Series F securities of certain Natixis Funds will be closed to all purchases and the minimum purchase amount for Series HF securities of certain funds will be reduced from $250,000 to $500. In addition, effective on or about June 5, , the Series F will be renamed as Series F1. and Series HF will be renamed as Series F.
On or about July 6, the Series F1 will be consolidated with the renamed Series F.
Effective June 5, Natixis will cease offering H Series and HF series of securities to new investors. Any pre-authorized chequing plans already in place in any of the closed H/HF Series will be closed. Distributions will continue to be re-invested into Series H and Series HF of these funds uninterrupted.
Effective June 5, Natixis Canada will cease offering all of the series of securities (Series A, F, H, HF and I) of the Return of Capital class and the Dividend class of the Natixis Canadian Bond Class to new investors.
Any pre-authorized chequing plans already in place in any of the Closed Canadian Bond Class series will be closed. Existing investors can switch their investment into the equivalent series of a different Natixis fund but will not be able to make additional investments into any of the Closed Canadian Bond Class series. Distributions will continue to be re-invested into the Closed Canadian Bond Class series of these funds uninterrupted.
In addition, effective on or about June 5, the tax classes of the Natixis Canadian Bond Class listed below will be renamed
Effective immediately, Natixis will eliminate the annual contingent tax management fee associated with all series of the Compound Growth class of each of the Natixis class funds.
Natixis has added a U.S. Dollar purchase option to certain Natixis funds. In particular, Series F of the Return of Capital class and Series F of the Compound Growth class of the following funds will offer a U.S. Dollar purchase option in addition to the currently offered Canadian Dollar purchase option/
Effective June 5, Natixis has discontinued the DSC and the low LL purchase options across the entire Natixis fund lineup, including for pre-authorized purchases. Investors with existing DSC and LL purchase option holdings will remain invested based on the redemption fee schedules applicable to those securities. The DSC and LL purchase options will continue to be available for reinvested distributions and for switches from existing securities acquired under the DSC or LL purchase options.
Effective June 5, the minimum eligibility requirement for the purchase of Series I securities is increased to $2 million per account from $1 milion per account. Any investor currently owning Series I securities can continue to purchase Series I securities, provided the investor’s account continues to meet the $1 million minimum.
Effective immediately, Natixis announces changes to the risk rating of certain Natixis Funds. These changes will be reflected in the renewal of the simplified prospectus for the funds.
As a result of Natixis’ annual review of distribution rates, effective immediately, Natixis has changed the distribution per share paid on each series of the Return of Capital and Dividend classes of the Natixis funds.
Detailed information on all the changes can be found in the company’s news release.