(January 23 – 15:30 ET) – Opus 2 Direct.com has acquired the Ambassador Funds and McDonald Funds from McDonald Investment Management Inc.

“The McDonald Funds will be moved onto the Opus 2 web-based platform, and McDonald will continue to manage the international assets of Opus 2 portfolios”, said Allen Clarke, Opus 2’s CEO and chairman.

According to the companies, the acquisition reflects Opus 2’s strategy of being the low-cost, high-service provider of professionally designed retail investment portfolios. The restructuring allows McDonald to concentrate on the management of foreign assets for its institutional and third-party mutual fund client base.

“We see this as a strategic opportunity to concentrate on the management of foreign assets, which is our real passion, and move away from the administration of mutual funds,” said John McDonald chairman and chief investment officer of McDonald.

Thanks to the acquisitions investors in McDonald and Ambassador funds will now benefit from lower annual fees and the higher service standards provided by the Opus 2 web-based platform.

Opus 2 will acquire 14 funds and will assume responsibility for all back office operations for both Opus 2 and the eight McDonald and the six Ambassador funds. “McDonald has managed Opus 2’s international assets since their inception and will continue as their manager — so the transition should be smooth”, said Clarke.

Seven of the McDonald funds will be merged into existing, low 1.85% MER Opus 2 funds. Opus 2 uses these underlying funds to build its investment portfolios, which are designed by international pension adviser William M. Mercer Ltd. These funds will continue to be sold principally through the direct channel.

The McDonald Canada Plus Fund — essentially a multimanger fund — will be renamed the Opus 2 Canada Plus Fund and will continue to be marketed through the broker/planner advice channel as a separate stand-alone balanced fund with the same trailer fees, but with lower MERs.

The six Ambassador funds are essentially aggressive, moderate and conservative fund of funds investment portfolios for both taxable and RSP accounts.
-IE Staff