PH&N lowers fund management fees, re-opens Vintage Fund



    VANCOUVER, June 25 /CNW/ - Phillips, Hager & North Investment Management
Ltd. (PH&N) today announced management fee reductions to selected PH&N and
BonaVista investment funds, as well as the re-opening of the PH&N Vintage
Fund.
    On or about June 27, 2008, management fees will be reduced on Series A
units of seven funds, and on Series F units of 17 funds. Series A units'
management fees will be reduced by between 5 and 35 basis points, while the
management fees for Series F units will be reduced by between 3 and 60 basis
points. A full list of the fee reductions is set out below.
    "PH&N is known for strong long-term performance and low fees," said
John Montalbano, president of PH&N and CEO of RBC Asset Management Inc. "The
fee reductions we are announcing today demonstrate that these cornerstones of
our firm remain as strong as ever."
    "Moreover, while our strength in serving to the direct-to-investor market
is well recognized, the significant Series F fee reductions underscore our
support of fee-based advisory relationships."
    On May 1, 2008, PH&N was acquired by RBC.
    "RBC Asset Management and PH&N share a commitment to providing
transparency, value and choice for investors," said Brenda Vince, president of
RBC Asset Management. "Today's announcement speaks to our leadership in
offering very competitive pricing for investors, whatever distribution option
they choose."
    Also effective June 27, 2008, the PH&N Vintage Fund will be re-opened for
investment. Its management fee is currently 1.75 per cent for Series A and
Series F units. On or about October 1, 2008, the management fee will be
reduced to 1.25 per cent for Series A units and to 1.00 per cent for Series F
units. As of that date, which follows the required notice to unitholders, and
subject to approval by the fund's independent review committee, the fund's
expenses will be paid by the fund, consistent with how expenses are charged to
PH&N's other funds.
    Launched in April 1986, the Vintage Fund is PH&N's most aggressive
Canadian equity fund. It was closed to new investors in 1993, but changes in
market conditions and liquidity now support re-opening the fund. The fund is
managed by PH&N's Canadian equity team; the lead portfolio managers are
Don Anderson and Andrew MacDonald.
    "The PH&N's Vintage Fund is a longstanding product with a solid long-term
performance track record," said Richard Self, vice-president of PH&N. "In
recent years, many investors have expressed an interest in the fund, and we
are pleased to be able to once again make this choice available to investors."
    For the period since the Vintage Fund's inception (from April 30, 1986 to
May 31, 2008), the compound annualized rate of return for Series A units of
the fund has been 12.1 per cent. Over the same time period, the S&P/TSX
Composite Index has returned 10.0 per cent and the median fund in the Canadian
Focused Equity category has returned 7.8 per cent. The Vintage Fund's 2007 MER
was 1.85 per cent, compared to 2.72 per cent for the median fund in its
category. (Source: Morningstar).
    Units of PH&N and BonaVista funds can be purchased directly from PH&N,
with a minimum account size of $25,000 (which may be spread across multiple
funds). Certain funds may also be purchased through a third party dealer or
discount brokerage, with a minimum investment of $5,000 per fund.
    Investors and advisors can get more information by contacting the PH&N
Investment Funds Centre at 1-800-661-6141. Please refer to the 2008 simplified
prospectus for the funds that will be filed on or about June 27, 2008 for
additional information.

    
    Management fee changes effective on or about June 27, 2008 (unless
    otherwise noted):
    -------------------------------------------------------------------------
    Series A units:                            Former                New
                                          management fee       management fee
    -------------------------------------------------------------------------
    PH&N Currency-Hedged Overseas
     Equity Fund                               1.25%                1.10%
    -------------------------------------------------------------------------
    PH&N Overseas Equity Fund                  1.25%                1.10%
    -------------------------------------------------------------------------
    PH&N Global Equity Fund                    1.25%                1.00%
    -------------------------------------------------------------------------
    PH&N Vintage Fund(*)                       1.75%                1.25%
    -------------------------------------------------------------------------
    PH&N Community Values Bond Fund            0.55%                0.50%
    -------------------------------------------------------------------------
    PH&N Community Values Balanced Fund        0.85%                0.75%
    -------------------------------------------------------------------------
    PH&N Community Values Canadian Equity
     Fund                                      1.10%                1.00%
    -------------------------------------------------------------------------
    PH&N Community Values Global Equity
     Fund                                      1.35%                1.00%
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Series F units:
    -------------------------------------------------------------------------
    PH&N Canadian Money Market Fund            0.43%                0.40%
    -------------------------------------------------------------------------
    PH&N Canadian Income Fund                  1.00%                0.75%
    -------------------------------------------------------------------------
    PH&N Dividend Income Fund                  1.00%                0.75%
    -------------------------------------------------------------------------
    PH&N U.S. Dividend Income Fund             1.00%                0.75%
    -------------------------------------------------------------------------
    PH&N Canadian Equity Fund                  1.00%                0.75%
    -------------------------------------------------------------------------
    PH&N Currency-Hedged U.S. Equity Fund      1.00%                0.75%
    -------------------------------------------------------------------------
    PH&N U.S. Equity Fund                      1.00%                0.75%
    -------------------------------------------------------------------------
    PH&N Currency-Hedged Overseas Equity
     Fund                                      1.25%                0.85%
    -------------------------------------------------------------------------
    PH&N Overseas Equity Fund                  1.25%                0.85%
    -------------------------------------------------------------------------
    PH&N Global Equity Fund                    1.25%                0.75%
    -------------------------------------------------------------------------
    PH&N Canadian Growth Fund                  1.00%                0.75%
    -------------------------------------------------------------------------
    PH&N Vintage Fund(*)                       1.75%                1.00%
    -------------------------------------------------------------------------
    PH&N U.S. Growth Fund                      1.00%                0.75%
    -------------------------------------------------------------------------
    PH&N Community Values Bond Fund            0.55%                0.50%
    -------------------------------------------------------------------------
    PH&N Community Values Balanced Fund        0.85%                0.75%
    -------------------------------------------------------------------------
    PH&N Community Values Canadian Equity
     Fund                                      1.10%                0.75%
    -------------------------------------------------------------------------
    PH&N Community Values Global Equity
     Fund                                      1.35%                0.75%
    -------------------------------------------------------------------------
    BonaVista Global Balanced Fund             1.00%                0.75%
    -------------------------------------------------------------------------
    BonaVista Canadian Equity Value Fund       1.00%                0.75%
    -------------------------------------------------------------------------
    (*) Effective on or about October 1, 2008.
    

    About Global Asset Management and RBC Wealth Management

    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
$111 billion in IFIC-reported mutual fund assets under management and an
additional $56 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.
    RBC AM provides a broad range of investment services to investors through
mutual funds, pooled funds and separately managed portfolios.
    PH&N is a leader in the provision of investment management services to
pension plans, endowments and foundations, and private clients. PH&N is the
manager of the Phillips, Hager and North Investment Funds and BonaVista
Investment Funds.
    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 $500 billion of
assets under administration, more than $240 billion of assets under management
and more than 4,000 financial consultants, advisors, private bankers and trust
officers.

    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. The performance data provided assumes reinvestment of distributions
only and does not take into account sales, redemption, distribution or
optional charges or income taxes payable by any unitholder that would have
reduced returns. Mutual fund securities are not covered by the Canada Deposit
Insurance Corporation or by any other government deposit insurer. There can be
no assurances that the fund will be able to maintain its net asset value per
security at a constant amount or that the full amount of your investment in
the fund will be returned to you. Past performance may not be repeated.

    
    -------------------------------------------------------------------------
    Compound annual    1 year   3 years   5 years   10 years      Since
    rates of return                                            inception(*)
    for periods
    ending May 31,
    2008
    -------------------------------------------------------------------------
    PH&N Vintage Fund
     Series A           16.9%     17.4%     16.7%      8.3%       12.1%
    -------------------------------------------------------------------------
    (*) April 30, 1986
    




For further information:

For further information: Chris W. Dotson, Vice-President, Phillips,
Hager & North Investment Management Ltd., Telephone: (604) 408-6009,
Facsimile: (604) 685-5712, E-mail: cdotson@phn.com


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