Investors Group is asking shareholders for permission to merge four of its equity and income investing funds.
The funds affected are:
|Merging Fund||Continuing Fund|
|Investors U.S. Equity Fund||To merge into||Investors Core U.S. Equity Fund|
|Investors U.S. Equity Class1||To merge into||Investors Core U.S. Equity Class1|
|Investors Income Portfolio||To merge into||Investors Fixed Income Flex Portfolio|
|IG Mackenzie U.S. Growth Class1||To merge into||IG Putnam U.S. Growth Class1|
Should shareholders and regulators approve, the mergers are expected on July 18, 2014.
Generally, these mergers are expected to benefit the security holders of the merging funds as a result of the potential for improved long-term performance in the continuing funds. The continuing funds’ larger asset base may provide greater portfolio management efficiency and/or a more comprehensive investment mandate with enhanced diversification, less volatility and greater portfolio management opportunities.
In addition, the company hopes the mergers will increase administration efficiency, including fee reductions in some cases.
Securityholders of the merging funds, as well as for the two continuing Corporate Class funds, will be asked to approve the mergers involving their funds at special meetings scheduled for July 7 in Winnipeg. Registered owners of the affected funds as at the record date (May 20, 2014) will receive a Notice of Meeting, Proxy and a Management Information Circular detailing the mergers.
The mergers are not considered to be material for any of the continuing funds, but meetings for the two continuing Corporate Class funds are required for corporate law purposes.
Persons who become registered securityholders after the record date of a fund for which a meeting is being held may request to receive the meeting materials and vote at the meeting by contacting the manager at least 10 days in advance of the meeting of their fund. The costs associated with the fund mergers will be borne by Investors Group.