| PRESS RELEASE |
|
Vancouver, July 12, 2002 Ethical Funds® and Credential® Funds to introduce optional loads Credential GroupTM today announced that Ethical Funds Inc. is introducing an "optional load" structure for Ethical Funds and Credential Funds effective October 1, 2002. This initiative will give investment dealers more flexibility to decide how Ethical Funds and Credential Funds are sold. "Investment dealers frequently have asked Ethical Funds Inc. to provide them with a greater ability to tailor their compensation structure," said Credential Group Vice President Marketing Margaret Yee. "Optional loads are one of the fairest ways to compensate dealers without impacting the investment returns of long-term mutual fund investors. The introduction of an optional load structure provides investment dealers with a high degree of flexibility in tailoring commission-based compensation." By providing incentives to dealers, the optional load structure is also calculated to expand the distribution network, and make it easier for Canadians to purchase socially responsible Ethical Funds and strategic asset allocation Credential Funds. Investors who purchased units of Ethical Funds or Credential Funds before October 1, 2002 will not be affected. Their existing mutual fund units will continue to be treated as "no load" units. About loads "Loads" are simply commissions charged when mutual fund units are purchased or redeemed. A front-end load is levied on the purchase of mutual fund units. A back-end load (or "deferred sales charge") is levied on the sale of mutual fund units. Back-end loads generally are in effect for six years. A low-load is like a back-end load, except that the deferred sales charge generally is in effect for two years. Starting October 1, 2002, Ethical Funds will be sold with optional loads, meaning that they can be sold with either a front-end, back-end, or a low-load. About 90 percent of equity-based mutual funds are sold with optional loads. Types of load structures Front-end loads: charged at time of purchase Back-end loads: at time of redemption Low loads: at time of redemption About Credential GroupTM Credential Group is the national wealth management provider owned by the Canadian credit union system. It offers a growing line of integrated products and services for all stages in the financial life cycle of Canadians. Credential Group consists of several companies that operate with common management and direction. These include Ethical Funds Inc., manager of Ethical Funds, Canada's leading family of socially responsible mutual funds, as well as Credential Funds, the strategic asset allocation products; Credential Asset Management Inc., the distributor of proprietary and third- party mutual funds through credit unions across Canada; and Credential Securities Inc., an investment dealer providing the credit union system with a full range of investment products. Credential DirectTM, a division of Credential Securities Inc., offers self-managed investing services via the Internet or by telephone. ®Credential, Ethical Funds, Credential Securities and TMCredential Group, Credential Group & Design and Credential Direct are trademarks and registered marks owned by Ethical Funds Inc. Investors: click here for frequently asked questions about optional loads. |
| 1 2 3 4 return to news archive |
 |
|
 |
Carol Boutin Manager, Marketing Communications t: 604.714.3997 f: 604.714.3861 e: cboutin@credential.com |