Toronto-based Sprott Asset Management LP has introduced three precious metals-oriented funds: Sprott Silver Equities Class Fund, Sprott Silver Bullion Class Fund and Sprott Gold Bullion Class Fund. The silver bullion class and the gold bullion class funds allow investors to switch share classes without triggering immediate tax repercussions. For Sprott Silver Equities Class Fund, advisor commissions are 0%-5% for front-end sales and 3% for the low-load option; redemption fees begin at 3% in Year 1 and end at zero after Year 3 of the low-load schedule; trailing commissions are up to 1% for both front-end and low-load sales; and management fees are up to 2.5% for A-class units and up to 1.5% for F-class units. For Sprott Silver Bullion Class Fund, advisor commissions are 0%-2% for front-end sales; trailing commissions are up to 0.45%; and management fees are up to 1.3% for A-class units and up to 0.85% for F-class units. For Sprott Gold Bullion Class Fund, advisor commissions are 0%-2%for front-end sales; trailing commissions are up to 0.3%; and management fees are up to 0.8% for A-class units and up to 0.5% for F-class units. Minimum investment for each fund is $1,000.
Invesco launches low-volatility ETF
Toronto-based Invesco Canada Ltd. has launched its first low-volatility, index-based exchange-traded fund. PowerShares S&P 500 Low Volatility (Canadian-Dollar-Hedged) Index ETF aims to replicate, as much as possible and before fees and expenses, the performance of the S&P 500 low-volatility index (C$-hedged). This ETF seeks to provide exposure to the 100 stocks in this index that have the lowest realized volatility over the past 252 trading days. This ETF invests predominantly in equities securities issued by U.S. companies and aims to hedge all or substantially all of its direct U.S.-dollar exposure back to the C$; the ETF also seeks to provide monthly cash distributions. The management fee is 0.35%. There may be a redemption charge of up to 0.25% of the exchange or redemption proceeds.
Horizons expands its ETF lineup
Toronto-based Horizons Exchange Traded Funds Inc. has expanded its ETF lineup with two new funds: Horizons High Yield Bond ETF and Horizons U.S. Floating Rate Bond ETF. Horizons High Yield Bond ETF seeks to provide investors with high total-return income and monthly distributions; this ETF invests primarily in high-yield debt securities issued by North American companies and will hedge non-Canadian-dollar exposure to the C$ to the best of its ability. Horizons U.S. Floating Rate Bond ETF invests primarily in a portfolio of U.S. corporate debt securities and will hedge the portfolio’s U.S. interest rate risk to generally maintain a portfolio duration of less than two years; this ETF’s investment objective is to generate income consistent with current U.S. short-term corporate bond yields while stabilizing the market value of the fund from U.S. interest rate fluctuations. Montreal-based Natcan Investment Management Inc. is the portfolio manager for both funds. The management fee for Horizons High Yield Bond ETF is 1.1%. The management fee for Horizons U.S. Floating Rate Bond ETF is 0.9%.
Managed futures ETF from Claymore
Toronto-based Claymore Investments Inc. has launched Claymore Managed Futures ETF, which seeks to take advantage of the price trends of commodities, fixed-income, equities and currencies available through North American futures markets. This ETF aims to offer investors downside protection, asset-class diversification and a hedge against inflation. The ETF is designed to replicate the performance and returns of the Guggenheim managed futures index, net of expenses. This index tracks globally listed commodities, currency, equities and fixed-income futures. Management fees for the ETF are 1.7% for A-class units and 0.95% for F-class units.
Pro-Financial goes for balance
Oakville, Ont.-based Pro-Financial Asset Management Inc. has unveiled Pro-Fundamental Balanced Index Fund. This fund aims to allocate 60% of its portfolio to equities and 40% to fixed-income. The equities component seeks to track the performance of the FTSE RAFI Canada index; the bond component seeks to track the performance of both the DEX one- to five-year laddered corporate bond index and the RAFI investment-grade bond index. Advisor commissions are 0%-4% for front-end sales. Trailing commissions are 0.8%. Management fees are 1.6% for A-class units and 0.65% for F-class units. Minimum investment is $1,000.
Compiled by Olivia Li (oli@investmentexecutive.com).