has lowered selected fees on various funds in its lineup. The firm is also introducing additional management fee reductions for investors with large investments in selected funds and series.
Effective June 1, fees will be lowered for Series A and applicable Series T, H, L, and N unitholders of 83 funds. The reductions may be applied to management fees, fixed administration fees, or both, depending on the fund, resulting in an aggregate cost reduction of up to 66 basis points. Series E on all funds will be closed to new investors and accounts on the same date.
Individual investors who have more than $250,000 invested in funds with the aforementioned embedded series will also be eligible for additional management fee reductions. Fee reductions between five and 22.5 basis points will be applied on a stepwise basis for investors who reach three thresholds: $250,000, $1 million, and $5 million. The discounts will be applied automatically once the asset threshold is met for eligible funds. Once the pricing changes take effect, Series A and Series E units of the same fund will have no difference in pricing.
In addition to the fee changes, Dynamic Funds is discontinuing the deferred sales charge (DSC) purchase option to all new investment starting June 30. Various other changes were also announced, including:
- Elimination of performance fees, including any current payable performance fees for the year, effective March 31;
- Lowering of minimum investment for Series I, IT, and IP from $100,000 to $25,000 starting June 1;
- Capping of Series P, FP, and IP of certain funds to all new investments effective March 31;
- Capping of Series G of all funds to all new investments effective June 1;
- Capping of Series FI of certain funds to new investors, except for existing securityholders, effective June 1
According to Mark Brisley, managing director and head of Dynamic Funds, the changes were made “to offer investors simplicity and even greater value for their investments” and to keep up with industry trends “as advisors have moved dramatically to other options that align with their clients' objectives.”
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