TORONTO, May 7, 2012 /CNW/ - NexGen Financial Corporation ("NexGen" or the "Company") today reported total mutual fund net new money during the month ended April 30, 2012 of -$0.6 million compared to $7.1 million for the month ended March 31, 2012. Total assets under management were $942.6 million at April 30, 2012 compared to $948.6 million at March 31, 2012, up 5.5% from $893.7 million at April 30, 2011.
On April 30, 2012, NexGen filed its annual fund prospectus renewal. Following a thorough review of its fund line up and distribution rates, NexGen has made the following additions and changes.
A new Corporate Bond Fund mandate, to be sub advised by Baker Gilmore, a Montreal-based Canadian fixed income manager, was included in the filing which, once approved by the Regulator, is expected to be available for distribution in June in eligible Canadian jurisdictions. "The Corporate Bond Fund launch is in response to advisor demand for additional fixed income product on which we have been able, historically, to add value though our unique tax structure", said Laurie Munro, President and CEO of NexGen.
Also as part of that filing, NexGen will adjust the distribution rate for both the Return of Capital Class and the Dividend Tax Credit Class of each of NexGen Canadian Dividend and Income Tax Managed Fund, NexGen Canadian Growth and Income Tax Managed Fund and NexGen North American Small/Mid Cap Tax Managed Fund from: (i) $0.75 per security annually ($0.0625 per security monthly) to $0.30 per security annually ($0.025 per security monthly) for the Return of Capital Class; and (ii) $0.60 per security annually ($0.050 per security monthly) to $0.30 per security annually ($0.025 per security monthly) for the Dividend Tax Credit Class. The adjustment of the distribution rate was made to bring the rate down to a level that management views will be sustainable for the long term.
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NexGen Financial Corporation was founded to develop value added investment solutions for financial advisors and their clients. The firm is focused on the creation of innovative investment products and services that meet the needs of Canadians seeking more tax efficient investment opportunities and greater control over the tax treatment of their investments. Managed by strong investment professionals, NexGen's unique Registered and Tax-Managed Fund offerings are well positioned as attractive investment opportunities for Canadians looking to alleviate the tax costs associated with traditional investment solutions.
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This document may include forward looking statements within the meaning of securities laws. Forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from what is currently expected. Accordingly, readers should not place undue reliance on forward looking statements.
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For further information:
Laurie Munro, President & CEO 416-775-3705 email@example.com
NexGen Financial Corporation
36 Toronto Street, Suite 1070
Toronto, ON M5C 2C5