TORONTO, March 7, 2019 /CNW/ - 1832 Asset Management L.P.,
Trustee and Manager of ScotiaFunds, today announced that it will
seek regulatory and unitholder approval for the following
mergers:
Terminating
Fund
|
|
Continuing
Fund
|
Scotia Latin
American Fund
|
to merge
into
|
Scotia
International Equity Fund
(formerly Scotia International Value Fund)
|
Scotia Pacific Rim
Fund
|
If approved, the proposed mergers are expected to take effect as
of the close of business on July 12,
2019. The Independent Review Committee of the Terminating
Funds and Continuing Fund has provided 1832 Asset Management L.P.
with a positive recommendation for the mergers on the basis that
they achieve a fair and reasonable result for the Terminating Funds
and Continuing Fund.
The Merger
Each merger will require the approval by a majority of the votes
cast by unitholders of the applicable Terminating Funds and
Continuing Fund at a special meeting of such unitholders, expected
to be held jointly on or about June 14, 2019 (the
"Special Meetings"). The record date for the purpose of determining
which unitholders are entitled to receive notice and vote at the
Special Meetings will be the close of business on or
about April 25, 2019. A management information circular
containing a complete description of the matters to be considered
at the Special Meetings will be made available to affected
unitholders after the record date.
Each of the mergers will take place on a taxable basis, which
would be considered a deemed disposition for tax purposes and may
have tax consequences for unitholders of the Terminating Funds if
held within a non-registered account.
For each merger that is approved, unitholders of the applicable
Terminating Funds will receive units of the equivalent series of
the Continuing Fund on a dollar-for-dollar basis. The Terminating
Funds will then be wound up as soon as possible following the
mergers.
Fixed Administration Fee
Reduction
If the mergers are approved, the Manager is also proposing a 10
basis point reduction in the Fixed Administration Fee ("FAF") for
Series A and Series F of the Scotia International Equity Fund. With
the reduction from 0.35% to 0.25%, the FAF of the Continuing Fund
after the merger will be lower than that of the Terminating Funds.
The fee reduction will take effect on or about July 12, 2019. The Management Fee for the
Terminating Funds and Continuing Fund are the same and will remain
unchanged.
Suspension of New Purchases
Effective as of the close of business on March 15,
2019, purchases of units of the Terminating Funds will be
suspended including purchases under existing pre-authorized
contribution plans. Unitholders will have the right to redeem units
of the Terminating Fund up to the close of business on the business
day immediately before the merger date, on or about July 8, 2019.
Following each merger, if implemented, unitholders can
re-establish a pre-authorized contribution plan or automatic
withdrawal plan with respect to the Continuing Fund by contacting
their advisor or registered dealer.
Rationale for Mergers
The proposed mergers are a result of the Manager's ongoing
review of the fund lineup and are believed to be in the best
interest of unitholders of the Terminating Funds and Continuing
Funds. All unitholders are expected to benefit from the
increased scale and operational efficiencies of a larger Continuing
Fund, post-merger. The mergers will also provide unitholders
of the Terminating Funds with enhanced regional diversification
with potentially less volatility.
Commissions, trailing commissions, management fees and expenses
may be associated with mutual fund investments. Please read the
prospectus before investing. Mutual funds are not guaranteed
or insured by the Canada Deposit Insurance Corporation or any other
government deposit insurer, their values change frequently and past
performance may not be repeated.
About 1832 Asset Management
1832
Asset Management offers a range of wealth management solutions,
including mutual funds, and investment solutions for private
clients, institutional clients and managed asset programs. 1832
Asset Management is a limited partnership, the general partner of
which is wholly owned by Scotiabank.
About Scotiabank
Scotiabank is Canada's
international bank and a leading financial services provider in the
Americas. We are dedicated to helping our more than 25 million
customers become better off through a broad range of advice,
products and services, including personal and commercial banking,
wealth management and private banking, corporate and investment
banking, and capital markets. With a team of more than 98,000
employees1 and assets of over $1
trillion (as at January 31,
2019), Scotiabank trades on the Toronto Stock Exchange (TSX:
BNS) and New York Stock Exchange (NYSE: BNS). For more information,
please visit www.scotiabank.com and follow us on Twitter
@ScotiabankViews.
1Employees are reported on a full-time equivalent
basis.
SOURCE Scotiabank