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(June 29, 2007) Investors Group has announced it will introduce a new fixed administration fee on its funds, in an effort to make MERs more predictable.

Right now, operating expenses are part of the MER, which fluctuates from year to year and making it hard for investors to predict. Those operating expenses will be replaced by the new fee.

The fees will range from 0.01% for money market funds to 0.25% for global equity and sector asset classes.

Investors Group also announced that it was lowering management fees on most of the company’s global corporate class funds by 0.05% to 0.10%.

A meeting to vote on the proposal is expected to take place on or around September 20. If all goes according to plan, the fixed administration fee should take effect on October 1.

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Jovian hires new president

(June 29, 2007) Jovian Capital is getting a new president. The company announced that it was splitting the president and CEO positions — currently held by Philip Armstrong — and hiring Jovian’s executive vice-president, Mark Arthur, to fill the role. Armstrong will remain as CEO.

“From Jovian’s early days, Mark has played an integral role in its growth from a small, private company to a growing public company,” said Armstrong in a release. “With this growth has come the need to create a more structured management process, in order to deal with the complexities of running a holding company. That led to the decision to split the titles of President and C.E.O. This new structure reflects how closely he and I work together.”

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MD Funds makes changes to its U.S. offerings

(June 29, 2007) MD Funds Management announced changes to several of its U.S. funds. The objective of the U.S. Large-Cap Growth Fund will be changed to focus on long-term capital growth as opposed to income production, which will become a secondary consideration.

Once the fund’s objectives change, the company will remove the large-cap investment restriction and implement a multi-capitalization investment strategy with a growth style of investing.

The mandate of the U.S. Large-Cap Value Fund is also changing. The new objective is to focus on long-term capital growth while paying attention the conservation of capital. The change will allow the fund to invest in small and med-sized capitalization companies.

The U.S. Small-Cap Growth Fund will be merged into the U.S. Large-Cap Growth Fund. If approved that change will take effect on or around September 21.

MD Funds is also changing the names of some of their offerings. Their U.S. Large-Cap Growth Fund will be renamed the American Growth Fund, while the Large-Cap Value Fund will become the American Value Fund.

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MFDA hands out two permanent bans

(June 29, 2007) It’s not quite the Conrad Black trial, but the MFDA disciplined two of its members on Thursday.

Robert Brick was punished for not dealing with his clients “fairly, honestly and in good faith,” after allegedly failing to invest $219,000 of his clients’ money. Brick has been permanently banned from conducting securities-related business with any MFDA member.

He was also ordered to pay a $219,000 fine and another $7,500 for investigation and prosecution costs.

The MFDA also handed down a decision against Cory Piggott. Between February and December 2005, Piggott misappropriated $64,000 from two mutual fund clients.

Like Brick, Piggott is forbidden to conduct any securities-related business with any MFDA member, and he’s ordered to pay back $64,065 and cover costs of $50,000.

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Industrial Alliance introduces its new ATTITUDE

(June 29, 2007) Industrial Alliance Insurance and Financial Services is introducing a new investment solution for members if its group retirement plans. The new ATTITUDE portfolio combines investment horizon and investor profile.

“For several years, professionals in the financial field have been insisting on the importance for each member to determine their investor profile and make an investment choice that corresponds to them,” said Lucie Lachance, director, actuarial and marketing services, group pensions. “Yet this fundamental concept in investments is left out of most of the life cycle funds offered on the market, since most of them only take the investment horizon into account. The ATTITUDE portfolios made up for this deficiency by integrating this determining factor which is the investor profile before any other product.”

The new portfolio proposes an asset allocation that will evolve over time according to investment horizon, which is determined by age and the target date of retirement. The company hopes to optimize growth possibilities at the beginning of a member’s career, and then take a more conservative approach as retirement nears.

Investor profile indicates a member’s investment knowledge, which can then be used to determine how risky that member’s investment should be.

(06/29/07)