MONTREAL, Nov. 16, 2011 /CNW Telbec/ - Gestion FÉRIQUE (www.ferique.com), as Manager of FÉRIQUE Funds, announced today that it will now use a
multi-management structure for the bond strategy of its Funds. This
decision reflects the philosophy of the company, which seeks to provide
consistent, above-average returns — with lower-than-average risk —
relative to funds in the same class on the market.
Given this decision, FÉRIQUE BOND Fund's management will be shared by
its current portfolio adviser, State Street Global Advisors, Ltd.
(SSgA), and a second portfolio adviser, Addenda Capital Inc. (Addenda),
on about a 60%-40% basis, respectively. This appointment will take
effect on or about December 6, 2011.
At the same time, the fixed income portfolio of FÉRIQUE BALANCED Fund,
which is currently managed by Addenda, will be transferred to FÉRIQUE
BOND Fund and replaced by an investment in units of FÉRIQUE BOND Fund.
This change will make FÉRIQUE BALANCED Fund one of the major
unitholders of FÉRIQUE BOND Fund, whose assets will increase from $307
million, as at October 31, 2011, to approximately $508 million on the
date of the transaction. Related changes will be made to FÉRIQUE
MODERATE BALANCED Fund to reflect the addition of a second portfolio
adviser to FÉRIQUE BOND Fund, in which FÉRIQUE MODERATE BALANCED Fund
"The scope of our FÉRIQUE BOND Fund allows us to divide its management
between two leading companies with complementary styles," said Fabienne
Lacoste, Executive Director of Gestion FÉRIQUE. SSgA uses an "index
plus" approach that consists of managing the allocation and selection
of securities within certain sectors of the bond market. Addenda
focuses more on the active management of portfolio duration relative to
"While our bond fund has an excellent track record relative to the
industry average, outperforming its peers 10 times over the past 11
years, we've noticed greater return volatility in recent years," added
Louis Lizotte, Director of Investments at FÉRIQUE. "A multi-management
structure will enable us to better control portfolio risk and, in turn,
improve long-term performance."
Launched in 1974, FÉRIQUE BOND Fund is one of 119 funds with more than a
25-year history in a universe of 6,591 Canadian funds. The Fund's
management fee ratio is currently 0.52%, ranking in the first decile of
the industry's least expensive bond funds.
About Gestion FÉRIQUE
Founded on January 1, 2000, Gestion FÉRIQUE (www.ferique.com) is manager of the 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
ten mutual funds diversified across all asset classes. Management of
the funds is entrusted to renowned investment firms which are
hand-picked by Gestion FÉRIQUE, based on their superior asset class
expertise. FÉRIQUE Funds have $1.6 billion in assets under management
and over 23,000 clients.
SOURCE GESTION FERIQUE INC.
For further information:
Manon Duhamel, Gestion FÉRIQUE, 514-840-9206, ext. 450