By Staff | June 18, 2009 | Last updated on June 18, 2009
3 min read
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Mackenzie Financial Services Inc. has announced the addition of two new fixed income offerings to its mutual funds lineup.

The Mackenzie Sentinel Short-term Government Bond Fund aims to provide a higher return than money market funds. Chris Kresic, senior vice-president, investments, with Mackenzie, has been tapped as lead manager, and the fund will be available on June 19, 2009.

The fund’s portfolio comprises Canadian federal, provincial or municipal government bonds, with an average weighted term to maturity of the securities of three years or less.

“[This fund] is a solution for investors who are seeking higher yield than is currently available on money market instruments, without any corporate credit risk exposure,” says David Feather, president of Mackenzie.

In response to the strong demand from investors for a tax-efficient corporate bond fund, Mackenzie is also introducing the Mackenzie Sentinel North America Corporate Bond Class Fund, which will provide investors with opportunities for tax deferral and a choice of cash flow.

As part of Mackenzie’s Capitalcorp structure, the fund allows investors to switch between other Capitalcorp funds on a tax-deferred basis. The fund is offered in both series A, which does not provide ongoing cash flow, and T6, which will provide a monthly distribution at a rate of 6% per year, based on the initial offering price.

The distributions are mostly composed of return of capital. The tax-efficient fund will be offered in both non-registered and registered versions and will be made available for purchase on June 19, 2009. The lead manager for the fund is Dan Bastasic, vice-president, investments, with Mackenzie.

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BMO proposes changes to two funds

BMO Investments has proposed changes to two of its mutual funds, which, if approved, would be effective on or about July 31, 2009.

The company is seeking unitholder approval to change the investment objective of the BMO Income Trust Fund to invest primarily in companies that operate in, or are expected to benefit from, infrastructure-related businesses from around the world.

A meeting of unitholders of this fund will be held on or about July 30, 2009. If they approve the change, the investment strategies and distribution policy for the fund will be revised to reflect the new objectives.

The portfolio manager of the fund will change from Guardian Capital LP to Macquarie Capital Investment Management LLC, and the fund will be renamed the BMO Global Infrastructure Fund.

BMO is also seeking unitholder approval for the merger of the BMO International Equity Fund into the BMO International Value Class.

Units of the BMO International Equity Fund will continue to be available for sale until the close of business on July 24, 2009, at which time new purchases into the fund will cease, except under a continuous savings plan or similar systemic plan established prior to July 24, 2009.

If the merger is approved, unitholders of the BMO International Equity Fund will receive shares of the BMO International Value Class. A meeting of security holders of both funds will be held on or about July 30, 2009.

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Raymond James names CWT as trustee

Raymond James Ltd. has named Canadian Western Trust Company (CWT) as trustee for all its self-directed registered and education savings plans.

“We are thrilled to add a premier company like Raymond James to our list of clients. This appointment supports our vision to be the recognized leader in trust services for financial advisors and corporations in Canada,” said Adrian Baker, vice-president and chief operating officer with CWT’s trust services division.

(06/18/09) staff


The staff of have been covering news for financial advisors since 1998.