Two firms have decided to eliminate certain low-performing offerings from their shelves
Stone Asset Management (SAM) and AGF Investments have announced plans to terminate certain mutual funds from their shelves in the coming months.
SAM has announced that it is closing the following funds on or about March 20:
- Stone Canadian Bond Fund - formerly Marquest Canadian Bond Fund
- Stone Money Market Fund - formerly Marquest Money Market Fund
- Stone Short Term Income Fund (Corporate Class) – formerly Marquest Short Term Income Fund (Corporate Class)
- Stone Canadian Resource Fund – formerly Marquest Canadian Resource Fund
- Stone Canadian Resource Fund (Corporate Class) – formerly Marquest Canadian Resource Fund (Corporate Class)
- Stone Monthly Pay Fund (Corporate Class) – formerly Marquest Monthly Pay Fund (Corporate Class)
The firm cited each fund’s small asset size, limited demand from new investors, and high fund operating expenses borne by investors in its decision to terminate the offerings.
“The goal of the Marquest acquisition was to expand investment options for investors under the SAM investment management philosophy, which is rooted in integrity and always doing the right thing for investors,” said SAM founder and CEO, Richard Stone. “We believe the termination of these Funds is in the best interest of the existing unitholders.”
Unitholders of the funds may switch to a different Stone Fund, redeem or transfer to reinvest in another group of funds, or redeem for cash. They will not be required to pay any redemption fees, sales charges, or other fund fees associated with the termination of a fund.
Meanwhile, AGF Investments has also announced the termination of six funds effective on or about April 8:
- Harmony Balanced Growth Portfolio Class
- Harmony Growth Portfolio Class
- Harmony Growth Plus Portfolio Class
- Harmony Maximum Growth Portfolio Class
- Harmony Global Fixed Income Pool
- Harmony Diversified Income Pool
The firm noted the “small number of investors, relatively low assets and the costs associated with maintaining such small funds” to explain its own decision. The funds are no longer available for purchase, including through switches from other funds and pre-authorized systematic purchases.
AGF is waiving the portfolio management fees as well as its portion of the management fees that normally apply to the funds from January 18 until the termination date. Prior to the termination date, unitholders have the option to transfer their investments into any other Harmony Pool or Portfolio, or to redeem their units.
Those who still hold shares/units of the funds in client-name registered plans will have their shares/units transferred to the same series and purchase option of Harmony Money Market Pool, effective on or about April 5. For those in client-name non-registered plans and or nominee/intermediary-hold accounts, the shares/units will be redeemed on or about April 8 without any redemption fees or sales charges applied.
“AGF strongly encourages unitholders to consult with their financial advisor to discuss their individual circumstances, including possible tax consequences,” the firm said.
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