Coast Capital Savings Credit Union

Coast Capital Savings Credit Union

March 26, 2009 14:22 ET

Coast Capital Savings Introduces Low-Fee, More-for-Me Mutual Funds

Credit union's first ever line of mutual funds aims at consumers seeking affordable and conservatively managed investments

SURREY, BRITISH COLUMBIA--(Marketwire - March 26, 2009) - Coast Capital Savings, Canada's second largest credit union, has launched a new family of six mutual funds, the Low-Fee, More-for-me Mutual Funds, created in partnership with global investment management firm SEI (NASDAQ:SEIC).

With a low fee structure, world-class investment management and an investment minimum of only $1,000, the Low-Fee, More-for-me Mutual Funds are designed to appeal to consumers who are looking for conservatively managed investments and savings value.

"More than ever, Canadians want to reduce the costs of managing their finances, and are looking for simple financial help in order to make good decisions about their investments," said Coast Capital Savings CEO Lloyd Craig. "With these new funds, we are responding to what our members are asking for, that is low-fees and accessible investments, all backed by sound financial advice."

Coast Capital Savings' new family of Low-Fee More-for-me funds:

- do not charge any front-end or back-end "load fee" to the purchaser

- feature low management fees ranging from 1.15 per cent to 1.56 per cent

- require a minimum investment of only $1,000, or $50 per month - one of the lowest investment minimums in Canada

- provide a disciplined and highly diversified investment solution that is typically unavailable to the average individual investor

- offer six funds to choose from, depending on an individual's risk tolerance and investment goals

Craig said the fact that the new product eliminates load fees and has low management fees will make it particularly attractive to cost-conscious investors. It also levels the playing field as investors no longer have to negotiate load fees, based on their assets or how investment savvy they are, Craig added.

Load fees are sales commissions that investors pay to advisors and financial institutions either at the time they purchase a mutual fund (front-end load fee) or when they redeem it (back-end load fee). These fees can be as high as 5 to 6 per cent, based on various factors, including an investor's net worth and their negotiation skills. Management fees, on the other hand, are the fees paid to the mutual fund company for managing the mutual fund assets on behalf of investors. The average management fee for mutual funds available in Canada is 1.78 per cent (source: Morningstar Research Inc., Feb. 28, 2009).

The new family of funds from Coast Capital Savings ranges from the lower-risk Income 20/80 fund, which is a mix of 20 per cent equity securities and 80 per cent fixed income securities designed to preserve capital, to the higher-risk Growth 100 fund, which offers a portfolio of equities diversified across Canadian and global markets.

"Our members know that when they come to Coast Capital Savings they will get honest and objective financial advice, but until now we have only been able to offer traditional third-party mutual funds," said Mike Bushore, Chief Innovation Officer, Coast Capital Savings. "Our members still have those options available to them, but with the Low-Fee More-for-me funds we can now offer more choices and access to an industry leader like SEI."

SEI is a global investment management company which specializes in providing investment solutions that include asset allocation research and a manager-of-managers implementation. This disciplined investment approach focuses on an investor's time horizon and recognizes that managing investment risk is as important as generating returns. Each fund is managed by multiple specialist portfolio managers who each provide specific expertise. SEI oversees the selection and performance of each specialist manager and also conducts continuous portfolio monitoring to ensure adherence to the funds' investment style and objectives.

"We are excited to be in partnership with Coast Capital Savings," said Jim Morris, Senior Vice-President of SEI Private Banking. "SEI and Coast Capital Savings share the same objective, which is meeting the financial goals of our clients."

Coast Capital Savings is Canada's second largest credit union with total assets under administration of $12.3 billion, 404,000 members and 51 branches in the Metro Vancouver, Fraser Valley and Vancouver Island regions of British Columbia. Product innovations from Coast Capital Savings include Canada's first free chequing account from a full-service financial institution, the first business account in the country to offer unlimited transactions for a flat fee and the newly introduced High-interest, No-fee Savings Account, another first for the Canadian financial industry. The credit union was named one of BC's Top 50 Employers in 2009, is one of Canada's 50 Best Managed Companies and the recipient of the Canadian Co-operative Association Innovations in Co-operative Governance Award. Coast Capital Savings has also been designated a Caring Company by Imagine Canada. To learn more, visit www.coastcapitalsavings.com.

SEI (NASDAQ:SEIC) is a leading global provider of outsourced asset management, investment processing and investment operations solutions. The company's innovative solutions help corporations, financial institutions, financial advisors, and affluent families create and manage wealth. As of December 31, 2008, through its subsidiaries and partnerships in which the company has a significant interest, SEI administers US$380 billion in mutual fund and pooled assets and manages US$134 billion in assets. SEI serves clients, conducts or is registered to conduct business and/or operations, from more than 20 offices in over a dozen countries. For more information, visit www.seic.com.

Mutual funds are provided by Worldsource Financial Management Inc. Mutual fund values change frequently and past performance may not be repeated. Commissions, trailing commissions, management fees and expenses may all be related with mutual fund investments. Mutual funds are not guaranteed. Please read the relevant prospectus before investing.

BACKGROUNDER

The Low-Fee, More-for-me Mutual Funds



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Income 20/80 - Mix of 20% equity securities and 80% fixed income
securities

- Low level of investment risk
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Conservative
Monthly Income - Mix of 30% equity securities and 70% fixed income
securities

- Pays income monthly

- Low level of investment risk
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Income 40/60 - Mix of 40% equity securities and 60% fixed income
securities

- Low to medium level of investment risk
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Balanced 60/40 - Mix of 60% equity securities and 40% fixed income
securities

- Low to medium level of investment risk
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Growth 80/20 - Mix of 80% equity securities and 20% fixed income

- Medium level of investment risk
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Growth 100 - 100% equity portfolio diversified across Canadian
and global markets

- Medium level of investment risk
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