Investors Group introduces fixed income investment product enhancements
Winnipeg, MB – February 4, 2011: 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 alternatives 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.
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*.
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:
|Alto Conservative Portfolio||
|Alto Moderate Conservative Portfolio||
|Alto Moderate Portfolio||
|Alto Moderate Aggressive Canada Focus Portfolio||
|Alto Aggressive Canada Focus Portfolio||
|Allegro Conservative Portfolio||
|Allegro Moderate Conservative Portfolio||
|Allegro Moderate Portfolio||
|Allegro Moderate Aggressive Portfolio||
|Allegro Moderate Aggressive Canada Focus Portfolio||
|Allegro Aggressive Portfolio||
|Allegro Aggressive Canada Focus Portfolio||
|Alto Monthly Income Portfolio||
|Alto Monthly Income and Growth Portfolio||
|Alto Monthly Income and Enhanced Growth Portfolio||
|Alto Monthly Income and Global Growth Portfolio||
|Investors Income Portfolio||
|Investors Income Plus Portfolio||
|Investors Retirement Plus Portfolio||
|Investors Growth Plus Portfolio||
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.
*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.
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.