With co-managers in Canada and Mexico, Harris Investment Management Inc., Chicago, has registered with the Securities and Exchange Commission to create a NAFTA mutual fund, said Donald G.M. Coxe, senior partner and president.
The firm hopes to get approval to launch the fund in the United States in January, and plans to market it both to retail and 401(k) investors.
Bank of Montreal Investment Counsel, Toronto, will run the Canadian part of the fund; Grupo Financiero de Bancomer, Mexico City, will run the Mexican part.
The Harris fund will be one of three, all identical funds, to be marketed to investors in each of the three countries. The three advisers will determine the country allocation, and will invest in both equities and fixed income in all three countries. The fund will not hedge currency risks.
Both the Canadian and Mexican funds are expected to be launched in October. Canadian regulators already have approved the fund for Canada. Bancomer is awaiting expected Mexican approval to launch the fund in Mexico and SEC registration as a U.S. investment adviser. In Mexico, the fund is the first using foreign managers, said Mr. Coxe.
In the United States, the fund will have a sales fee for retail but not institutional investors.
Both Harris' parent, Harris Bankcorp, and BOMIC are owned by Bank of Montreal, Toronto.