TORONTO, March 31, 2017 /CNW/ - Dynamic Funds today announced additional pricing reductions as part of its commitment to simplify its product offering. Lower management fees and/or lower fixed administration fees will be introduced on numerous funds. Further, additional management fee reductions will be automatically applied on all eligible funds and series for investors who hold large investments. These changes will allow investors and advisors to automatically obtain the best available pricing through a single series. In addition, the deferred sales charge (DSC) purchase option will be discontinued across the entire Dynamic Funds lineup. Lastly, to make the product lineup easier to understand, certain other series options, fees and expenses will be capped or eliminated.
"To offer investors simplicity and even greater value for their investments, Dynamic Funds has further improved its pricing to offer lower fees and expenses and automatic discounts. No matter if an advisor works within a fee-based or traditional embedded fee structure, their clients will receive the lowest offered fee level without the need to switch to a different series," said Mark Brisley, Managing Director and Head, Dynamic Funds. "In light of industry trends, we've also taken the opportunity to discontinue the DSC purchase option as advisors have moved dramatically to other options that align with their clients' objectives."
Fee Reductions and Smarter Pricing
Effective June 1, 2017, fee reductions will be made to Series A and, where applicable, Series T, H, L and N (collectively the 'embedded series') of 83 funds through lower management fees and/or lower fixed administration fees. Depending on the fund, the aggregate cost will be lowered by up to 66 basis points.
Additional management fee reductions will be available for those individual investors with more than $250,000 invested in funds with embedded series. Fee reductions between 5 and 22.5 basis points will be automatically applied when asset levels in these series reach three different thresholds: $250,000, $1 Million, and $5 Million. Upon meeting the asset threshold for an eligible fund, the management fee reduction will be applied, automatically, to all account assets held in that fund.
In conjunction with these reductions, Series E on all funds will be closed to new investors and new accounts, effective June 1, 2017. Only investors with current Series E holdings may continue to make purchases, including those from pre-authorized chequing plans. With the introduction of the pricing changes described above, there will be no difference in the pricing between Series A and Series E of the same fund.
DSC Purchase Option Discontinued
Effective June 30, 2017, the DSC purchase option will be closed to all new investment. Investors with existing DSC holdings will be permitted to remain invested in their positions in accordance with their DSC schedule.
Product Lineup Simplification
To further simplify the Dynamic Funds product lineup, the following changes will also be made:
- Performance fees for certain funds will be eliminated, including any current payable performance fees for the year, effective March 31, 2017.
- The investment minimum for Series I, IT, and IP will be lowered to $25,000 from $100,000, effective June 1, 2017.
- Series P, FP, and IP of certain funds will be capped to all new investments effective March 31, 2017.
- Series G of all funds will be capped to all new investments effective June 1, 2017.
- Series FI of certain funds will be capped to new investors effective June 1, 2017 but will remain open for purchases by existing securityholders.
For more details about the changes introduced, please visit www.dynamic.ca/feesimple
About Dynamic Funds
Dynamic Funds is a division of 1832 Asset Management L.P., which offers a range of wealth management solutions, including mutual funds, investment solutions for private clients, institutional clients and managed asset programs. 1832 Asset Management L.P. is a limited partnership, the general partner of which is wholly owned by Scotiabank. ® Dynamic Funds is a registered trademark of its owner, used under license.
Commissions, trailing commissions, management fees and expenses all may be associated with investments in the funds. Please read the prospectus before investing. Investments in the funds are not guaranteed; their values change frequently and past performance may not be repeated.
SOURCE Dynamic Funds
For further information: Customer Relations Centre, 1-800-268-8186, www.dynamic.ca; For media enquiries only: Debra Chan, Public, Corporate and Government Affairs, Scotiabank, (416) 866-6443, [email protected]