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PH&N files prospectus amendment: changes will enhance
transparency, accessibility of PH&N funds
VANCOUVER, November 12, 2008 — Phillips, Hager
& North Investment Management Ltd. (PH&N) today announced
the filing of an Amended and Restated 2008 Simplified Prospectus
for the 25 PH&N funds currently available to retail investors.
The amendment reflects changes to PH&N's product offering
that are designed to enhance transparency, align PH&N's
fund series with industry naming conventions, and provide
greater accessibility and expanded options for investors and
advisors.
Subject to regulatory approval, the following changes will
come into effect on November 17, 2008:
- The re-naming of Series A fund units to Series D, in order
to clarify that this series is not intended for use by third-party
advisors. This is a naming change only and has no impact
on the funds' management fees or the service or advice provided
by PH&N to its clients. Series D fund units will continue
to be available for purchase by investors directly through
PH&N, as well as through RBC Direct Investing and other
discount brokers.
- The introduction of Series C fund units, designed for
use by full-service advisors. This new series is designed
to expand the availability of PH&N funds to investors,
in particular those who deal with third-party advisors.
Series C fund units will be available for 25 PH&N funds,
all of which will have management fees lower than those
of the category average (based on Morningstar data as at
September 30, 2008). PH&N will pay a trailing commission
on assets invested in Series C units of up to 100 basis
points for equity, dividend and balanced funds, 50 basis
points for fixed income funds, and 25 basis points for money
market funds.
- The launch of Series C coincides with new, lower minimum
investment requirements for PH&N funds purchased through
full-service advisors. Effective November 17, 2008, the
minimum initial investment for Series C or Series F units
will be $1,000 per fund in nominee-name accounts (previously,
the minimum investment through the advice channel was $5,000
per fund).
- Series D units of PH&N funds will no longer be available
for sale through third-party advisors and Series B fund
units will no longer be available for sale. As of that date,
advisors will generally be restricted to purchasing Series
C and Series F units only.
Also, subject to regulatory approval, effective December
1, 2008, PH&N may pay a trailing commission on assets
invested in Series D units that are held through discount
brokerage dealers. This change is expected to result in lower
fees paid by many investors who choose to purchase these funds
through discount brokerage dealers, as discount brokerage
dealers that collect the trailing commission are expected
to discontinue the practice of charging front-end sales fees.
There is no change to the management fees of Series D fund
units as a result of this trailing commission. Investors can
continue to purchase Series D fund units directly from Phillips,
Hager & North Investment Funds Ltd., with no trailing
commission paid.
About RBC Global Asset Management and RBC Wealth Management
RBC Global Asset Management comprises RBC Asset Management
Inc. (RBC AM), Phillips, Hager & North Investment Management
Ltd. (PH&N) in Canada and Voyageur Asset Management Inc.
in the U.S. Combined, RBC AM and PH&N have $102 billion
in IFIC-reported mutual fund assets under management and an
additional $49 billion in other institutional and private
client assets under management. RBC AM and PH&N received
the Lipper Awards for "Best Overall Fund Group"
and "Best Bond Family" in Canada respectively for
the second consecutive year in 2008.
Global Asset Management is part of RBC Wealth Management,
which directly serves affluent and high net worth clients
in Canada, the United States, Latin America, Europe and Asia.
RBC Wealth Management also provides asset management and trust
products and services directly and through RBC and third-party
distributors to all client segments, and has over C$500 billion
of assets under administration, more than
C$240 billion of assets under management and more than 4,000
financial consultants, advisors, private bankers and trust
officers.
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For more information, please contact:
Chris Dotson,
RBC Global Asset Management Communications,
(604) 408-6009
Jackie Braden,
RBC Media Relations,
(416) 974-2124
Required disclosures and warnings:
Commissions, trailing commissions, management fees and expenses
all may be associated with mutual fund investments. Please
read the prospectus before investing. Mutual funds are not
guaranteed, their values change frequently and past performance
may not be repeated.
Phillips, Hager & North Investment Funds Ltd. is the
principal distributor of the units of the PH&N and BonaVista
funds. The management fees and operating expenses associated
with the PH&N and BonaVista investment funds are paid
by the respective fund. The fees for Sky's sub-advisory services
with respect to non-North American equity asset management
in the PH&N investment funds and the BonaVista Global
Balanced Fund are paid by PH&N and not by the funds.
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