Investors Group plans a number of enhancements to its fixed income offering in order to address the current low interest rate environment and provide the appropriate diversification opportunities for its clients. These are in conjunction with its recently announced introduction of the Investors Fixed Income Flex Portfolio.
“If interest rates begin to rise, fixed income investors will need more diversification options to help ensure they achieve the investment growth and income they are looking for,” said John Wiltshire, Senior Vice-President, Product and Financial Planning at Investors Group.
New Investors Canadian Corporate Bond Fund
This new mandate will aim to provide current income by investing primarily in investment grade fixed income securities issued by Canadian corporations, along with other securities such as high yield debt instruments and mortgages. This Fund complements the risk and return characteristics of our existing fixed income funds.
Subject to regulatory approval, this new Fund is expected to be available in early May 2011.
Fund Merger
Investors Group also intends to merge its Investors Government Bond Fund into the Investors Canadian Bond Fund, pending regulatory and unitholder approvals. This is expected to provide investors in the merging fund with the benefits of the broader investment mandate available with the Investors Canadian Bond Fund, which in turn provides the potential for more stable and improved long term performance.
In addition, the merger will result in the Investors Canadian Bond Fund reducing its annual management fee by 0.15%.
Unitholders of record (as of March 10, 2011) holding units of Investors Government Bond Fund will receive a Notice of Meeting, Proxy and Management Information Circular detailing the changes and will be asked to approve the merger at a unitholder meeting scheduled for April 28, 2011*.
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*Note: Unitholders in the Portfolio Funds that invest in Investors Government Bond Fund will not be asked to approve this merger as their Portfolio Funds are not expected to be invested in that Fund at the time of the merger.
Portfolio Allocation Enhancements
Investors Group is also enhancing the make-up of some of its Allegro Portfolios™, Alto Portfolios™, Alto Monthly Income Portfolios™, as well as Investors Income Portfolio, Investors Income Plus Portfolio, Investors Retirement Plus Portfolio, and Investors Growth Plus Portfolio. Some of these changes are in conjunction with the introduction of the new Investors Canadian Corporate Bond Fund and the planned merger of the Investors Government Bond Fund into Investors Canadian Bond Fund. In addition, diversification to global equities will be enhanced, most notably by expanding exposure in Asia, in a number of Investors Group Portfolio Funds.
The proposed changes are:
Portfolio Funds |
Changes |
| Alto Conservative Portfolio | Add Investors Pan Asian Growth Fund at 5% and Investors Canadian Corporate Bond Fund at 10%Increase IG Mackenzie Income Fund by 5%Remove Investors Canadian Bond Fund and Investors Japanese Equity Fund |
| Alto Moderate Conservative Portfolio | Add Investors Canadian Corporate Bond Fund at 5% and Investors Pan Asian Growth Fund at 5%Increase Investors Canadian Bond Fund by 10%Remove Investors Government Bond Fund and Investors Japanese Equity Fund |
| Alto Moderate Portfolio | Add Investors Pan Asian Growth Fund at 6%Decrease Investors U.S. Large Cap Value Fund by 1%Remove Investors Japanese Equity Fund |
| Alto Moderate Aggressive Canada Focus Portfolio | Add Investors Pan Asian Growth Fund at 6%Decrease Investors U.S. Large Cap Value Fund by 1%Remove Investors Japanese Equity Fund |
| Alto Aggressive Canada Focus Portfolio | Add Investors Pan Asian Growth Fund at 6%Decrease Investors U.S. Large Cap Value Fund by 1%Remove Investors Japanese Equity Fund |
| Allegro Conservative Portfolio | Add Investors Canadian Corporate Bond Fund at 10% and Investors Pan Asian Growth Fund at 5%Increase Investors Canadian Bond Fund by 5%Remove Investors Government Bond Fund and Investors Japanese Equity Fund |
| Allegro Moderate Conservative Portfolio | Add Investors Canadian Corporate Bond Fund at 5% and Investors Pan Asian Growth Fund at 5%Increase Investors Canadian Bond Fund by 10%Remove Investors Government Bond Fund and Investors Japanese Equity Fund |
| Allegro Moderate Portfolio | Add Investors Pan Asian Growth Fund at 6%Decrease Investors U. S. Equity Fund by 1%Remove Investors Japanese Equity Fund |
| Allegro Moderate Aggressive Portfolio | Add IG Mackenzie Income Fund at 15%Remove Investors Government Bond Fund |
| Allegro Moderate Aggressive Canada Focus Portfolio | Add IG Mackenzie Income Fund at 15% and Investors Pan Asian Growth Fund at 6%Decrease Investors U.S. Large Cap Value Fund by 1%Remove Investors Government Bond Fund and Investors Japanese Equity Fund |
| Allegro Aggressive Portfolio | Increase Investors Mackenzie Universal Emerging Markets Class by 5%Decrease Investors European Equity by 3% and IG AGF U.S. Growth Fund by 2% |
| Allegro Aggressive Canada Focus Portfolio | Add Investors Pan Asian Growth Fund at 6%Decrease Investors U.S. Large Cap Value Fund by 1%Remove Investors Japanese Equity Fund |
| Alto Monthly Income Portfolio | Increase IG Mackenzie Income Fund by 2%Decrease Investors Real Return Bond Fund by 2% |
| Alto Monthly Income and Growth Portfolio | Add IG Putnam U.S. High Yield Income Fund at 5%Increase Investors Mortgage and Short Term Income Fund by 2%Decrease Investors Canadian High Yield Income Fund by 5% and Investors Real Return Bond Fund by 2% |
| Alto Monthly Income and Enhanced Growth Portfolio | Add IG Putnam U.S. High Yield Income Fund at 5% and Investors Global Real Estate Fund at 5%Increase Investors Mortgage and Short Term Income Fund by 4% and IG Mackenzie Income Fund by 3%Decrease Investors Canadian High Yield Income Fund by 5% and IG Mackenzie Maxxum Dividend Growth Fund by 5%
Remove Investors Real Return Bond Fund |
| Alto Monthly Income and Global Growth Portfolio | Add IG Putnam U.S. High Yield Income Fund at 5%Increase Investors Global Real Estate Fund by 3%Decrease Investors Global Fund by 3%
Remove Investors Canadian High Yield Income Fund |
| Investors Income Portfolio | Add Investors Canadian Corporate Bond Fund at 15% and Investors Real Property Fund at 10%Increase Investors Canadian Bond Fund by 1% and Investors Mortgage and Short Term Income Fund by 7%Remove Investors Government Bond Fund |
| Investors Income Plus Portfolio | Add Investors Canadian Corporate Bond Fund at 10%Increase Investors Canadian Bond Fund by 10% and Investors Mortgage and Short Term Income Fund by 5%Remove Investors Government Bond Fund |
| Investors Retirement Plus Portfolio | Increase Investors Canadian Bond Fund by 5% and Investors Mortgage and Short Term Income Fund by 5%Remove Investors Government Bond Fund |
| Investors Growth Plus Portfolio | Add Investors Canadian Corporate Bond Fund at 5% and Investors Mortgage and Short Term Income Fund at 10%Increase Investors Canadian Bond Fund by 5%Remove Investors Government Bond Fund |
The prospectuses for each of these portfolio funds are being revised to reflect these changes, which are expected to take effect on or about May 3, 2011, subject to regulatory approval. Notices will be sent to unitholders of the affected portfolio funds detailing these changes together with their first quarter client statements.
Investors Group, founded in 1926, is a national leader in delivering personalized financial solutions to Canadians through a network of over 4,600 Consultants located throughout Canada. In addition to an exclusive family of mutual funds and other investment vehicles, Investors Group offers a wide range of insurance, securities, mortgage and other financial services. Investors Group is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of Canada’s premier financial services companies with $131 billion as of January 31, 2011 in total assets under management.
A preliminary simplified prospectus relating to the new Investors Fixed Income Flex Portfolio has been filed with the Canadian securities commission or similar authorities. A preliminary simplified prospectus relating to the new Investors Canadian Corporate Bond Fund is expected to be filed shortly with the Canadian securities commissions or similar authorities. You cannot buy units of the new funds until the relevant securities commissions or similar authorities issue receipts for the simplified prospectus of those funds. This is not a solicitation to purchase units of the new funds.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual funds investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The Funds are distributed across Canada by Investors Group Financial Services Inc. (in Quebec, a financial services firm.).
™ Trademarks are owned by IGM Financial Inc. and are used with permission.
For further information:
Media contact:
Ron Arnst
Media Relations
(204) 956-3364
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