Claymore launches two exchange-traded funds

Toronto-based Claymore Investments Inc. has launched two new exchange-traded funds that will trade on the Toronto Stock Exchange. They are Claymore International Fundamental Index ETF (TSX: CIE), which tracks the top U.S.-listed companies, and Claymore Japan Fundamental Index ETF C$ Hedged (TSX: CJP), which tracks the top Japanese companies. Claymore says there is a “real lack of good international-focused ETFs for Canadian investors,” and that the new products are aimed at those seeking exposure to global markets with the benefit of low management fees. The ETFs were designed using the index approach of the FTSE RAFI series, which has historically outperformed its respective market benchmarks, the company says. Trailing commissions are 0.75%. Management fees are 0.65%.



Sentry Select proposes merger of funds

Toronto-based Sentry Select Capital Corp. has proposed the merger of Mortgage-Backed Securities Trust and MBS Adjustable-Rate Income Fund with Sentry Select MBS Adjustable-Rate Income Fund II. Sentry says the merger will result in significant benefits to unitholders, including increased economies of scale, lower operating expenses and greater liquidity on the TSX. If approved, the terminating funds will transfer all their assets to Sentry Select MBS ARIF II in exchange for units of that fund. Unitholders of the terminated funds will receive units of Sentry Select MBS ARIF II equal to the net asset value of their previously held funds on the date of the merger, expected to be April 4. All costs and expenses of the merger will be absorbed by the manager, Sentry says. A unitholder meeting will be held on April 4.



National Bank makes changes to Blue Chip Notes

National Bank of Canada has announced changes to its lineup of Blue Chip Notes, aimed at investors who want to reduce their portfolio’s exposure to the Canadian market, which is heavily weighted in energy, materials and financial services. Effective immediately, Canadian Blue Chip III Note invests in health care and is underweighted in energy and materials compared with the S&P/TSX composite index. Global Blue Chip II Note’s holdings have been reduced to 20 stocks so its Canadian weighting better reflects Canada’s representation on the MSCI world index. With only one Canadian security (accounting for 5% of the portfolio), the Canadian stock market capitalization of Global Blue Chip II Note has been adjusted to reflect the benchmark index (3%-4%) better. The note is now also more aligned with its benchmark index in terms of sector diversification. Finally, Euro-Pacific Blue Chip II Note has added eight new securities to its holdings in an effort to make its sector and geographical diversification similar to that of its benchmark, the MSCI-EAFE index.
All three funds have eight-year terms, and the reference portfolio of each note is composed of 20 securities weighted at 5% each. Fees and commissions remain unchanged. Minimum investment is $1,000.

Man Investments rolls out principal-protected notes

Toronto-based Man Investments Canada Corp. has launched Man MGS Access (Canada) Notes, the company’s first note product designed specifically for Canadian investors. The notes will provide exposure to MGS Access Portfolio, managed by Man Global Strategies. Issued by Citibank Canada, the Canadian notes are 100% principal-protected if held until maturity. The manager will seek to provide exposure to MGS Access Portfolio of up to 150% of the prevailing NAV of the notes. The notes will allocate their assets among a selection of hedge fund managers that score highly on MGS’s internal rating system and are focused on outperforming the market, Man Investments says. Front-end commissions are up to 3%, or 4% for deferred sales and 2% for low-load. Redemption fees begin at 4% in Year 1 and end at zero after Year 7 of the DSC schedule, or 2% in Year 1 and zero after Year 7 of the low-load schedule. Trailing commissions are 1.25% for front-end purchases, 1% for low-load and 0.75% for DSC sales. Management fees are 2%. Minimum investment is $5,000. The notes are open to inves-tors until April 30.



CAPVEST proposes change to investment objectives

CAPVEST Income Corp. has proposed a change to its investment objectives and a consolidation of its common shares. The company is seeking shareholder approval to change its investment objectives to focus on investing, directly or indirectly, in a diversified group of infrastructure and energy companies rather than its current focus on commodity futures contracts reflecting four Rogers International commodity indices (known as the “RICI portfolio”) and commodity-related income and royalty funds. CAPVEST says it has been unhappy with the returns of the RICI portfolio, and believes it can achieve higher and more stable returns by investing in a group of energy-related income and royalty funds, as well as in publicly traded infrastructure companies in Canada and in the member countries of the Organization for Economic Co-operation and Development. Infrastructure companies include those relating to transportation, energy, water and communications, CAPVEST says. The company is also seeking shareholder approval to consolidate its common shares at a ratio of up to 15:1 in a bid to raise the share price to more attractive levels, reduce shareholder transaction costs and improve trading liquidity. A shareholder meeting will be held March 6. All changes are subject to approval of the TSX Venture Exchange.

@page_break@Compiled by Lara Hertel (lhertel@investmentexecutive.com)