Capacity targets have one investment firm moving to cap three funds in the coming weeks – a move that is part of a broader trend to optimize investment value
Capacity targets have one investment firm moving to cap three funds in the coming weeks – a move that is part of a broader trend to optimize investment value.
“Capping the funds allows us to continue investing in the same manner that we have done for the past 17 years for our clients and partners,” said Alan Wicks, senior managing director and senior portfolio manager, Manulife Asset Management Ltd., adding that “capping will allow us to continue investing in this manner without having to alter our process.”
Limiting the expense ratio of the funds should provide investors with a fee ceiling – a piece of security that investment advisors can use to their advantage when laying out the prospectus for a client.
Wick adds that this “process” will continue to be available to investors through other mandates managed by the Value Equity team.
The move reflects an industry trend, like that of Trimark Government Plus Income Fund, when securityholders approved changes to the fund’s investment objectives to promote flexibilty to invest a greater percentage of the fund’s assets in fixed-income securities issued by Canadian corporations.
“We believe the changes are in the best interests of investors and should provide them with long-term benefits,” Aysha Mawani, vice president of corporate affairs for Invesco Canada, told WP.