Fund news and updates

Fund news and updates

DSCs banned, WisdomTree sold, Dynamic debuts 2 ETFs


* Deferred sales charges on mutual funds to end in most provinces. The Canadian Securities Administrators (the organization of provincial securities commissions) announced on Feb. 20 new regulations to ban deferred sales charges (DSCs) on mutual funds. The rules take effect on June 1, 2022, in all provinces and territories except Ontario, and will prohibit fund organizations from paying upfront sales commissions to dealers. According to a press release, DSCs give dealers an incentive to sell mutual funds that impose redemption fees to investors if they sell their holdings before a certain period of time. During this transition period, dealers will be allowed to sell mutual funds with a DSC, and the redemption fee schedules on those holdings will be allowed to run their course.

* CI completes buyout of WisdomTree. WisdomTree Investments announced on Feb. 20 that it has completed its previously announced sale of WisdomTree Asset Management Canada to CI Financial Corp.

WisdomTree CEO Jonathan Steinberg said, “This transaction allows us to focus more on our core markets in the U.S. and Europe, while still benefiting from continued growth in the Canadian ETF market.”

CI paid C$5 million in cash at closing, and total cash consideration payable to WisdomTree will range from C$7 million to C$13 million based upon certain assets under management growth targets for the funds acquired by CI through the transaction over the next three years.

* Dynamic launches new active ETFs. Dynamic Funds announced on Feb. 20 the launch of two now actively-managed ETFs.

Dynamic Active Global Infrastructure ETF (TSX: DXN) holds a diversified portfolio of infrastructure and related companies from around the globe. Managers are market veterans Frank Latshaw and Oscar Belaiche, who both manage a similar mandate.

Dynamic Active International Dividend ETF (TSX: DXW) invests in dividend- or distribution-paying companies mainly outside of North America. The fund is managed by Dana Love, Kevin Kaminski, and Danilo Martins, who manage a similar mandate.

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