Investors Group announces mutual fund changes
Winnipeg, MB – February 5, 2015: Investors Group has announced proposed changes to its fund offering including:
- Fund mergers involving Investors Capital Yield Class and Investors Short Term Capital Yield Class and Investors Premium Money Market Fund;
- An investment objective change involving Investors Managed Yield Class;
- The creation of a new “Premium Series” of mutual fund units for Investors Canadian Money Market Fund.
Additionally, Series Ti of Investors Capital Yield Class will be closed to all investments on February 5, 2015, and terminated on or about May 15, 2015.
Proposed Fund Mergers
The following proposed mergers are expected to take effect on or about the close of business on May 15, 2015, subject to any necessary securityholder and regulatory approvals:
|Merging Fund/Series||Continuing Fund/Series|
|Investors Capital Yield Class1
(all Series other than Series I and Series Ti)
|To merge into||Investors Canadian Bond Fund|
|Investors Capital Yield Class1 – Series I
||To merge into
||iProfile™ Fixed Income Pool – Series I
Investors Short Term Capital Yield Class1
|Investors Mortgage & Short Term Income Fund
|Investors Premium Money Market Fund
||To merge into
||Investors Canadian Money Market Fund – Premium Series
1This mutual fund is a class of securities issued by Investors Group Corporate Class Inc.TM
The mergers are expected to provide securityholders of the merging funds with the potential for more efficient investment management due to a larger asset base, and generally more comprehensive investment mandates that may result in enhanced diversification and greater portfolio management opportunities. Overall, it is expected that these elements taken together will result in the potential for improved long-term performance in larger continuing funds.
All of the above mergers have been reviewed by the Investors Group Funds Independent Review Committee (IRC) which has determined that the mergers achieve a fair and reasonable result for the merging funds and the continuing funds/series.
Proposed Investment Objective Change
Securityholders of Investors Managed Yield Class will be asked to approve the change of the investment objective of their fund which will change Investors Managed Yield Class from a specialty fund to a money market fund. If approved, the name of the fund will change to Investors Canadian Money Market Class. Investors Canadian Money Market Class will aim to provide a stable current return through exposure to Canadian money market securities by investing in other money market mutual fund(s) and/or directly in money market securities. Initially, it is expected that the fund will invest in units of Investors Canadian Money Market Fund. The proposed investment objective change will become effective on or about May 1, 2015, pending required approvals.
By pooling its assets with those of other Investors Group money market fund(s), this change is expected to result in a larger amount of assets providing the Class with potentially greater efficiencies in the management of its portfolio.
Securityholders of the Investors Managed Yield Class will be asked to approve the objective change of their fund, and securityholders of the merging funds/series, other than Investors Premium Money Market Fund, will be asked to approve the mergers involving their merging funds/series, at special meetings scheduled to be held on April 20, 2015, in Winnipeg.
Registered owners of these funds as at the record date (March 3, 2015) will receive a Notice of Meeting, Proxy and a Management Information Circular detailing the mergers and investment objective change, respectively. Securityholders of Investors Capital Yield Class – Series I shares will vote separately with respect to the merger of their Series into Series I of the iProfile Fixed Income Pool. Similarly, securityholders holding fixed distribution series (the various Series T options) of the merging funds will vote separately because the continuing funds do not offer any fixed distribution series units. The mergers are not considered to be material for any of the continuing funds/series.
Persons who become registered securityholders after the record date of a fund/series may request to receive the meeting materials and vote at the meeting of their fund/series, by contacting the manager at least 10 days in advance of the meeting.
Money Market Funds Merger
The IRC has approved the merger of the Investors Premium Money Market Fund into the Investors Canadian Money Market Fund and, in accordance with securities regulations, a meeting of securityholders of Investors Premium Money Market Fund is not necessary. To facilitate this merger, a new “Premium Series” of Investors Canadian Money Market Fund is being created with the same fee structure as that offered by Investors Premium Money Market Fund into which the Investors Premium Money Market Fund will be merged. Securityholders of the merging fund as of the record date (February 17, 2015) will receive written notice at least 60 days prior to the merger. This merger will be effective on or about the close of business on May 15, 2015, at which time the Premium Series of Investors Canadian Money Market Fund will be available for sale.