Briefly: “RBC caps PH&N High Yield, offers new fund” and more news

RBC Global Asset Management has announced it will close the PH&N High Yield Bond Fund to new investors, and launch the RBC High Yield Bond Fund in its place.

The new fund be available for purchase October 12, 2010, and will be managed by Frank Gambino, senior portfolio manager and investment grade and high yield bond expert with RBC Asset Management Inc.

“We are exceptionally fortunate to have an accomplished team of high yield bond managers whose capabilities benefit our clients,” said John Montalbano, CEO of RBC Global Asset Management. “As we prudently cap the PH&N High Yield Bond Fund for our existing clients, we are excited to launch the RBC High Yield Bond Fund for new investors seeking a conservative high yield bond investment with a focus on opportunities beyond Canada’s borders.”

The PH&N High Yield Bond Fund will be closed to new investors effective November 26, 2010, having grown to $2 billion in assets under management since its launch in July 2000.

– Steven Lamb

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Franklin Templeton to close real estate class

Franklin Templeton has announced plans to terminate the Franklin Global Real Estate Corporate Class fund, effective on or about December 10, 2010. The company has ceased sales of new shares as of today.

The corporate class offering invests substantially all of its assets in units of Franklin Global Real Estate Fund, which will be liquidated for a final distribution on or about December 8, 2010.

Shareholders can redeem or switch their holdings in the fund on or prior to December 9, 2010. At the close of business on December 10, 2010, any remaining shareholders who hold the fund in a registered account will have their holdings switched into Franklin Templeton Money Market Corporate Class. Investors holding the fund in a non-registered account will have their holdings liquidated at fair market value.

– Steven Lamb

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BluMont to merge two funds

BluMont Capital has announced plans to streamline its product lineup by merging BluMont Canadian Fund with Northern Rivers Conservative Growth Fund, pending investor and regulatory approval.

BluMont will hold a special meeting of unitholders of the Canadian Fund to consider the merger on or about November 12, 2010. An information circular will be mailed on or about October 21, 2010.

If all approvals are received, the merger will be completed on or about November 30, 2010.

– Steven Lamb

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Arrow launches market neutral fund

Arrow Hedge Partners is launching a new market neutral multi-strategy fund, named Arrow Curvature. The fund will invest in small- and mid-cap companies, primarily in Canada and the United States.

“This fund performs best in down markets or markets with normal to high levels of volatility and employs a proven proprietary, model-driven strategy developed and refined from over a decade of institutional investing and trading,” says Mark Purdy, managing director and chief investment officer of Arrow Hedge Partners.

The fund is now available for purchase on a stand-alone basis by accredited investors. The investment mandate of the fund is to remain market neutral while maximizing absolute return on investments, with less than half the volatility of broad equity markets.

“The key to this process is that it provides a return stream that is typically not correlated with equity markets or traditional relative value hedge fund strategies,” says James Hodgins, chief investment officer of CHS Asset Management Inc., the advisor on the fund. “Further, it provides our investors with protection against systemic declines in risk assets as seen in 2007-2008 and which we have seen recently.”

– Steven Lamb

(09/29/10)