Toronto - The Canadian fund industry's hottest new product trend will make it easier for foreign-owned firms to compete in Canada, a senior fund executive told the annual conference of the Investment Funds Institute of Canada.

Joe Canavan, president of Synergy Asset Management, was referring to clone funds which rely on customized derivatives contracts to mirror the performance of actively-managed foreign funds. Introduced in May by Mackenzie Financial of Toronto, there are no limits on the use of clone funds in registered retirement savings plans.

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