Investors Group plans to merge two mutual funds in September.
The Investors Cornerstone I Portfolio and Investors Cornerstone III Portfolio will be merged as of Sept. 14, 2018, into the Investors Cornerstone II Portfolio (Continuing Fund).
Investors Group said in a release that the merger would “simplify its mutual fund lineup, while also delivering the benefit of fee reductions for investors.”
The mergers qualify as “pre-approved” mergers under securities regulations because they do not involve a substantive change in investment objective or strategies for securityholders of the funds to be merged, added the firm.
The Continuing Fund will have a reduced maximum management fee compared to the funds being merged. The mergers will occur on a tax-deferred basis.
Securityholders of the funds don’t need to approve the merger because Investors Group Funds Independent Review Committee approved it based on on certain conditions being met (including that securityholders receive written notice about the mergers at least 60 days in advance).
The Continuing Fund will be known as Investors Cornerstone Portfolio as of June 30, 2018.