Mr. Laurie Munro reports
NEXGEN FINANCIAL CORPORATION ANNOUNCES APRIL SALES AND ASSETS UNDER MANAGEMENT
NexGen Financial Corp. had
total mutual fund net new money during the month ended April 30, 2012,
of minus $600,000, compared with $7.1-million for the month ended March 31,
2012. Total assets under management were $942.6-million at April 30,
2012, compared with $948.6-million at March 31, 2012, up 5.5 per cent from $893.7-million at April 30, 2011.
On April 30, 2012, NexGen filed its annual fund prospectus renewal.
Following a thorough review of its fund lineup and distribution rates,
NexGen has made the following additions and changes.
A new corporate bond fund mandate, to be subadvised by Baker Gilmore, a
Montreal-based Canadian fixed-income manager, was included in the
filing, which, once approved by the regulator, is expected to be
available for distribution in June in eligible Canadian jurisdictions.
"The corporate bond fund launch is in response to adviser demand for
additional fixed-income product on which we have been able,
historically, to add value though our unique tax structure," said
Laurie Munro, president and chief executive officer of NexGen.
Also as part of that filing, NexGen will adjust the distribution rate
for both the return-of-capital class and the dividend-tax-credit class
of each of NexGen Canadian Dividend and Income Tax Managed Fund, NexGen
Canadian Growth and Income Tax Managed Fund, and NexGen North American
Small/Mid Cap Tax Managed Fund from: (i) 75 cents per security annually
(6.25 cents per security monthly) to 30 cents per security annually (2.5 cents
per security monthly) for the return-of-capital class; and (ii) 60 cents
per security annually (five cents per security monthly) to 30 cents per
security annually (2.5 cents per security monthly) for the dividend-tax-credit class. The adjustment of the distribution rate was made to bring
the rate down to a level that management views will be sustainable for
the long term.
(in millions of dollars) April, 2012 March, 2012 April, 2011
Gross sales $ 14.8 $ 23.4 $ 26.5
Redemptions 15.4 16.3 17.9
Net sales -0.6 7.1 8.5
Total AUM 942.6 948.6 893.7
We seek Safe Harbor.