By Scott Ronalds
We noted in a blog last August (It’s Getting Lonely) that Saxon Financial was sold to IGM Financial (Investors Group) in what was yet another example of a direct seller that has turned its focus to the advisor channel.
Morningstar’s Rudy Luukko suggested in an article this week that with the amalgamation now complete, it’s “doubtful whether the Saxon no-load operation will survive.” If the merger follows the same course as similar takeovers (e.g., Bissett and Scudder), it’s only a matter of time before the no-load version of the funds will be a thing of the past.
The Saxon funds will continue to be marketed and sold as part of the Mackenzie family, but the new ‘advisor series’ versions have higher MERs. Just what investors need in this type of environment.
To repeat the close of our previous blog on the topic, we find ourselves a little lonelier in the direct-to-client segment, with the majority of fund companies firmly focused on the advisor channel. But Steadyhand supporters should rest assured that our resolve and confidence is stronger than ever. For engaged investors, we still think the Steadyhand approach makes perfect sense. With fewer players in the space, it’s now just a little more “mavericky”.