NexGen Financial Limited Partnership

NexGen Financial Limited Partnership

December 11, 2013 15:53 ET

NexGen Financial Limited Partnership Announces Canadian Balanced Growth Fund Changes

TORONTO, ONTARIO--(Marketwired - Dec. 11, 2013) - NexGen Financial Limited Partnership ("NexGen") is pleased to announce the following changes to the NexGen Canadian Balanced Growth Fund mandate, which changes will be effective January 1, 2014:


Current Portfolio Management

NexGen Financial Limited Partnership acts as the portfolio manager and J. Zechner Associates Inc. ("Zechner") of Toronto, Ontario acts as the sub-advisor for each of the NexGen Canadian Balanced Growth Registered Fund (the "Registered Fund") and NexGen Canadian Balanced Growth Tax Managed Fund (the "Tax Managed Fund") (fixed income and equity portions).

Portfolio Management Change

Effective January 1, 2014:

(i) Galibier Capital Management Ltd. ("Galibier") will replace Zechner as the sub-advisor of the equity portion of the Tax Managed Fund. Zechner will continue to act as the sub-advisor of the fixed income portion of the Tax Managed Fund.

(ii) Given that the active portfolio management is conducted within the Tax Managed Fund, Zechner will no longer act as sub-advisor to NexGen in respect of the Registered Fund.


Galibier is an investment management firm founded in 2012 by Joseph Sirdevan, Scott Connell and Graham Anderson. Galibier is registered as an investment fund manager and portfolio manager in Ontario and as a portfolio manager in British Columbia. Galibier is currently the manager of two investment pools, being the Galibier Canadian Equity Pool and the Galibier U.S. Equity Pool. As at November 30, 2013 the performance of the two pools was as follows:

1 month 3 months YTD
Galibier Canadian Equity Pool 4.3 % 12.7 % 28.4 %
S&PTSX (total return) 0.5 % 6.7 % 10.8 %
Galibier U.S. Equity Pool 5.8 % 11.5 % 36.2 %
S&P500 (CAD, total return) 4.6 % 11.6 % 37.3 %
Note 1: All return figures for the funds are gross of fees and fund expenses. Indicated rates of return are historical returns, including changes in security value and reinvestment of all distributions and does not take into account any applicable income taxes payable by any security holder that would have reduced returns

Mr. Sirdevan was formerly a partner, lead portfolio manager and director of research of North American equities at Jarislowsky Fraser Limited, managing in excess of $25 billion. Prior to that, Mr. Sirdevan was an investment analyst at the Ontario Teachers' Pension Plan. Mr. Sirdevan has in excess of 20 years of investment experience, is a CFA and is the Chief Executive Officer of Galibier.

Mr. Connell was formerly a partner and co-manager of Canadian and Global equities at McLean Budden Ltd. managing approximately $10 billion. In addition to portfolio management, Mr. Connell was responsible for conducting research and providing recommendations in the consumer discretionary, technology and telecom industry sectors. Scott is a CFA and has 13 years of investment management experience.

Graham Anderson was formerly Chief Investment Officer and head of Investment Operations at Invesco Trimark. Mr. Anderson is a CFA and CA and has over 20 years of experience in investment operations, financial services consulting, compliance, risk management, audit and accounting. Mr. Anderson is the Chief Financial Officer of Galibier.


Reduced Distribution Rate

(i) Return of Capital Class - Effective January 1, 2014, the distribution rate for the Return of Capital Class of the Tax Managed Fund shall be reduced from $0.75 per security per annum ($0.0623 per security monthly) to $0.30 per security per annum ($0.025 per security monthly).

(ii) Dividend Tax Credit Class - Effective January 1, 2014, the distribution rate for the Dividend Tax Credit Class of the Tax Managed Fund shall be reduced from $0.60 per security per annum ($0.05 per security monthly) to $0.30 per security per annum ($0.025 per security monthly).

"We are excited to announce the hiring of Galibier as a sub advisor to NexGen's Canadian Balanced Growth Fund. The three founders have outstanding investment pedigrees and we look forward to improved fund returns for shareholders. Distribution rates have been reset to sustainable levels of 4.58% for our Return of Capital Class and 3.86% for the Dividend Tax Credit Class based on Nov 30th Fund NAVs" said Laurie Munro, President and CEO of NexGen Financial Corporation.

About NexGen

NexGen Financial Limited Partnership is a mutual fund company and was founded to develop value added investment solutions for financial advisors and their clients. The firm is focused on the creation of innovative investment products and services that meet the needs of Canadians seeking more tax efficient investment opportunities and greater control over the tax treatment of their investments. Managed by strong investment professionals, NexGen's unique Registered and Tax-Managed Fund offerings are well positioned as attractive investment opportunities for Canadians looking to alleviate the tax costs associated with traditional investment solutions.

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