IG adjusts income line, increases Asian exposure

Edito’r Note: from http://www.advisor.ca

Investors Group has announced plans to improve efficiencies in its fixed income line-up, in light of the low interest rate environment.
“If interest rates begin to rise, fixed income investors will need more diversification options to help ensure they achieve the investment growth and income they are looking for,” said John Wiltshire, senior vice-president, product and financial planning at Investors Group.
 The plan includes the launch of the new Investors Canadian Corporate Bond Fund, which will invest primarily in investment grade fixed income securities issued by Canadian corporations, along with other securities such as high yield debt instruments and mortgages.  The fund still requires regulatory approval, but should be available in early May 2011.
 IG plans to merge its Investors Government Bond Fund into the Investors Canadian Bond Fund, in an effort to provide a broader, more diverse mandate. As a result of the larger asset base, the Canadian Bond Fund will reduce its management fee by 0.15%.
The company will also rejig its portfolio products to reflect the aforementioned fund merger and new product launch.  At the same time, exposure to global equities will be increased in a number of Investors Group Portfolio Funds, as a means of increasing exposure to Asian markets.