Gestion FÉRIQUE announces portfolio management changes in its FÉRIQUE BOND Fund
MONTREAL,, March 18, 2014 /CNW Telbec/ - Gestion FÉRIQUE, as the manager of FÉRIQUE Funds, today announced a change to the FÉRIQUE BOND Fund, which will now be managed by Addenda Capital Inc. (Addenda) and Baker Gilmore & Associates Inc. (Baker Gilmore). This change, which will take effect on or about March 21, 2014, will end the mandate of portfolio advisor State Street Global Advisors, Ltd. (SSgA), which previously managed 30% of the Fund's assets.
Due to this change, similar amendments will also be made to FÉRIQUE MODERATE BALANCED Fund, FÉRIQUE BALANCED Fund, and FÉRIQUE BALANCED GROWTH Fund, which invest, respectively, 60%, 38% and 28% of their total assets in FÉRIQUE BOND Fund.
The structure of FÉRIQUE BOND Fund, which has nearly $575 million in assets under management, is based on the multi-manager approach which characterizes FÉRIQUE Funds. This approach aims to diversify risk by combining the strengths of multiple managers with complementary styles. The Fund will be divided equally between investment management firms Addenda and Baker Gilmore, which have been managing the Fund since 1998 and 2013 respectively.
To provide superior long-term returns, Addenda's strategy primarily relies on the active management of the portfolio's duration relative to its benchmark, while Baker Gilmore focuses more on sector allocation and security selection.
"The Canadian bond market is in transition and we wanted to give our bond fund greater flexibility to remain competitive in the current environment and adapt to whatever the future holds," said Louis Lizotte, CFA, Senior Director of Investments at Gestion FÉRIQUE.
Launched on August 16, 1974, FÉRIQUE BOND Fund is one of 205 funds with more than a 25-year history in a universe of 8,103 Canadian funds. The Fund's management expense ratio was reduced from 0.75% to 0.65% on January 1, 2014, ranking below the industry's least expensive 25th percentile of funds (according to PALTrak survey, owned by Morningstar Research Inc., as of February 28, 2014).
About Gestion FÉRIQUE
Founded on January 1, 2000, Gestion FÉRIQUE (www.ferique.com) is the manager of FÉRIQUE Funds, launched in 1974 by the Ordre des ingénieurs du Québec. FÉRIQUE is the only not-for-profit mutual fund company in Canada whose sole purpose is to serve the interests of engineers, engineering graduates and their families. The firm offers 11 mutual funds diversified across all asset classes. Management of the Funds is entrusted to renowned investment firms, handpicked by Gestion FÉRIQUE based on their asset class expertise. FÉRIQUE Funds have approximately $1.9 billion in assets under management and more than 21,000 clients.
SOURCE Gestion FÉRIQUEFor further information: Manon Duhamel, Gestion FÉRIQUE, 514-840-9206, Ext. 450, email@example.com