New funds focus on Africa and Middle East

Two new funds are setting their sights on the Middle East and Africa. Toronto-based Mackenzie Financial Corp.’s Mackenzie Universal Africa & Middle East Class Fund and Franklin MENA Fund, the latter sponsored by Franklin Templeton Investments Corp. of Toronto, were both launched on Nov. 17. The Franklin fund is managed by Dubai-based Algebra Capital Ltd., which is 25%-owned by Franklin Templeton. The Mackenzie fund is subadvised by the South African asset-management arm of London-based Investec PLC, an Africa and Middle East investment specialist. Sales commissions for Franklin MENA are: front-end, 0%-6%; deferred sales, 5%; and for the low-load option, 2.5%. Redemption fees begin at 6% in Year 1 and end at zero after Year 6 for the regular DSC schedule, or begin at 3% in Year 1 and end at zero after Year 3 of the low-load schedule. Trailing commissions are 1% for front-end sales; 0.5% for DSC for six years, then jumping to 1%; and 0.5% for the first three years of low-load sales and 1% thereafter. Management fees are 2.25% for A-class units and 1.25% for F-class units. Minimum investment is $500. For the Mackenzie fund, sales commissions are: 0%-5% for front-end sales, 5% for deferred sales or 2.5% for the low-load option. Redemption fees begin at 5.5% in Year 1 and end at zero after Year 7 for the regular DSC schedule, or begin at 3% in Year 1 and end at zero after Year 3 of the low-load schedule. Trailing commissions are 1% for front-end sales; 0.5% for the first seven years of DSC sales, and 1% thereafter; and 0.5% for the low load option, increasing to 1% after three years. Management fees are 2.5% for A-class units and 1.5% for F-class units. Minimum investment is $500.

PH&N files amended, simplified prospectus

Phillips Hager & North Investment Management Ltd. of Vancouver has filed an amended prospectus for its 25 retail funds in a bid to improve transparency and adopt industry naming conventions. The company has introduced Series C fund units, designed for use by full-service advisors. PH&N will pay a trailing commission on assets invested in Series C units of up to 100 basis points for equity, dividend and balanced funds, 50 bps for fixed-income funds, and 25 bps for money market funds. Minimum investment requirements have also been lowered for PH&N funds bought through full-service advisors. Minimum initial investment for Series C or Series F units will be lowered to $1,000 from $5,000 per fund in nominee-name accounts. Meanwhile, Series A fund units are to be renamed Series D, to clarify that this series is not intended for use by third-party advisors. The units can be bought by investors directly through PH&N, as well as through RBC Direct Investing and other discount brokers. Series B fund units will no longer be available. Unaffiliated advisors will generally be restricted to purchasing Series C and Series F units.

Funds propose merger

GrowthWorks Canadian Fund Ltd., sponsored by Vancouver-based GrowthWorks Managed Funds, and Canadian Medical Discoveries Fund Inc., sponsored by Medical Discovery Management Corp. of Toronto, are proposing a merger to be completed in the second quarter of 2009. GrowthWorks Canadian Fund will purchase the assets of Canadian Medical Discoveries Fund in exchange for Class A shares of GrowthWorks Canadian Fund that would be distributed to Canadian Medical Discoveries Fund unitholders. GrowthWorks manages approximately $800 million in assets through Working Opportunity Fund (EVCC) Ltd., GrowthWorks Atlantic Venture Fund Ltd., GrowthWorks Commercialization Fund Ltd. and GrowthWorks Canadian Fund Ltd. Canadian Medical Discoveries Fund Inc. has $120 million in assets.

ScotiaMcLeod Inc. makes fund advisor changes

Thornburg Investment Management Inc., based in Santa Fe, N.M., will take over the management of ScotiaMcLeod Inc.’s Pinnacle International Equity Fund on Jan. 6, replacing Wellington Management Co. LLP of Boston. Founded in 1982, Thornburg has assets under management of approximately US$43 billion. Also, as of Feb. 5, Scheer Rowlett Associates Investment Management Ltd. of Toronto will assume the management of Pinnacle Canadian Value Equity Fund, replacing Toronto-based BonaVista Asset Management Ltd. Scheer Rowlett manages approximately $4 billion in AUM and is a member of Connor Clark and Lunn Financial Group.

JovFunds to wind up fund

JovFunds Management Inc., a subsidiary of Toronto-based Jovian Capital Corp., plans to wind up Jov North American Momentum Fund by Jan. 5. The fund will be wound up following a liquidation of fund assets, a determination of the distributions to be paid to unitholders by the fund, and the redemption of outstanding units. Redemptions and switch orders will be accepted and processed up to Jan. 2.

@page_break@Compiled by Laura Bobak (lbobak@investmentexecutive.com).