Investors Group Juggles Portfolio

Investors Group is re-balancing its Alto and Allegro portfolios.  In 2011 they rolled the  Investors Government Bond Fund into the Investors Canadian Bond Fund.  Now the Investors Canadian Bond Fund is being dropped from the Alto Conservative and Alto Moderate Portfolios (-5% each).  It is being replaced by the Investor's Canadian High Yield Income Fund.  Funny - our advisor told us to stay away from the high yield fund because it was too frothy.

In Allegro Portfolios the Investors Mortgage and Short Term Income Fund is being cut 5% and is also being replaced it seems by the IG Putnum U.S. High Yield Income Fund.

With a 1.8% MER on the bond fund it is no wonder it has to be replaced with something that puts earnings in the owners pocket instead.  In comparison, XBB - iShares Canadian Universe Bond Index ETF has a MER of 0.33% and a Weighted Average Coupon (%) (the mean of the coupon rate of the underlying bonds in a portfolio) of 3.83% - that means you keep about 3.5% of the returns.  With the Investors Canadian Bond Fund you split the returns in half with them!