Dynamic Funds has announced additional pricing reductions to simplify its product offering. It says lower management fees and/or lower fixed administration fees will be introduced on numerous funds.
As well, additional management fee reductions will be automatically applied on all eligible funds and series for investors who hold large investments. These changes will allow them to obtain the best available pricing through a single series.
Dynamic adds the deferred sales charge purchase option will be discontinued across the entire Dynamic Funds lineup, while certain other series options, fees and expenses will be capped or eliminated.
Effective June 1, 2017, fee reductions will be made to Series A and, where applicable, Series T, H, L and N of 83 funds through lower management fees and/or lower fixed administration fees. Depending on the fund, the aggregate cost will be lowered by up to 66 basis points.
Additional management fee reductions will be available for those individuals investing more than $250,000 in funds with embedded series. And, fee reductions between 5 and 22.5 basis points will be automatically applied when asset levels in these series reach three different thresholds: $250,000, $1 million and $5 million. Upon meeting the asset threshold for an eligible fund, the management fee reduction will be applied, automatically, to all account assets held in that fund.
As well, Series E on all funds will be closed to new investors and new accounts, effective June 1, 2017. Only investors with current Series E holdings may continue to make purchases, including those from pre-authorized chequing plans.
With the introduction of these pricing changes, there will be no difference in the pricing between Series A and Series E of the same fund, says Dynamic.
DSC purchase option
Effective June 30, 2017, the DSC purchase option will be closed to all new investment. Those with existing DSC holdings will be permitted to remain invested in their positions in accordance with their DSC schedule, says Dynamic.
To further simplify its product lineup, Dynamic has made the following changes:
- Performance fees for certain funds will be eliminated, including any current payable performance fees for the year, effective March 31, 2017.
- The investment minimum for Series I, IT, and IP will be lowered to $25,000 from $100,000, effective June 1, 2017.
- Series P, FP, and IP of certain funds will be capped to all new investments effective March 31, 2017.
- Series G of all funds will be capped to all new investments effective June 1, 2017.
- Series FI of certain funds will be capped to new investors effective June 1, 2017 but will remain open for purchases by existing securityholders.