On The Shelf: Mackenzie slices thinner target date, and more product news

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(June 24, 2008) Mackenzie Investments has launched the Mackenzie Destination+ 2017 Fund, a target date fund that fills the gap between the company’s existing 2015 and 2020 funds.

The Destination+ product line also offers a daily lock-in of market gains and includes a guaranteed payout of the principal at maturity.

“Based on feedback from financial advisors, Destination+ funds are a useful financial planning solution, particularly for investors who are uncertain about investing in equity markets,” says David Feather, president, Mackenzie Financial Services Inc. “The guaranteed maturity amount provides downward protection, while a high initial level of equity exposure offers excellent growth opportunities.”

The funds generally start with higher equity exposure than other life-cycle products, with the 2017 portfolio starting with a 75% allocation.

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Franklin Templeton launches T-bill class

(June 24, 2008) Franklin Templeton Investments has announced the launch of the Franklin Templeton Treasury Bill Yield Class, which uses a derivative strategy to provide returns in the form of lower-taxed capital gains, rather than interest.

The fund will invest in Canadian equities and enter into forward contracts under which it will forward-sell the equity securities at a future date. The forward contracts will tie returns to those of the Franklin Templeton Treasury Bill Fund.

That fund is managed by Guy Le Blanc, who will also manage the new Treasury Bill Yield Class.

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BMO offers U.S. high-yield bond fund

(June 24, 2008) BMO Investments has launched a new fund aimed at providing investors with exposure to the U.S. high-yield bond market. The BMO U.S. High Yield Bond Fund invests in American fixed income instruments to generate a total return made up of interest income and capital gains.

It will focus on the riskier end of the debt market, investing primarily in securities rated below BBB, but will attempt to mitigate risk using bottom-up quantitative and fundamental analysis.

“Investing in U.S. high-yield bonds provides investors with enhanced return potential and improved diversification given the bonds’ historically lower correlation to other sectors of the fixed income market,” said Linda Knight, president and COO, BMO Investments Inc.

The fund is available in both Series A units for retail investors and Series I units for institutional investors. The fund will be managed by HIM Monegy, Inc., part of BMO Financial Group’s Chicago-based subsidiary, Harris Investment Management, Inc.

(06/24/08)