TORONTO AND VANCOUVER, April 18 /CNW/ - NEI Investments today announced
the following proposed changes to the mutual funds it manages:
PROPOSED FUND MERGERS
NEI Investments has announced the following proposed mergers of funds.
Credential EnRich Canadian Equity Pool
Ethical Canadian Dividend Fund
Credential EnRich US Equity Pool
Ethical American Multi-Strategy Fund
Credential EnRich International Equity Pool
Northwest EAFE Fund
Unitholders of the terminating funds will be asked to approve the
mergers at a meeting to be held on June 27, 2011. It is proposed that
unitholders who own either Class A Units or Class B Units of the
terminating funds will receive Series A units of the continuing funds.
NEI Investments has received a recommendation of the Independent Review
Committee of the funds that the proposed mergers achieve a fair and
reasonable result for the funds. The mergers are also subject to
regulatory approval. If the necessary approvals are obtained, it is
anticipated that the mergers will be completed on or about June 27,
Effective April 19, 2011, units of the terminating funds will no longer
be available for purchase, except for those unitholders who have
existing arrangements in place to purchase units under pre-authorized
contribution plans. Unithholders of the terminating funds will continue
to have the right to redeem their units up to the close of business on
the business day immediately before the effective date of the mergers.
Full details of the transactions will be contained in an information
circular to be provided to unitholders of the terminating funds.
PROPOSED FIXED ADMINISTRATION FEE
NEI Investments has announced a proposal to implement a fixed
administration fee for the Credential EnRich Income Pool, which will be renamed the NEI Income Fund on or about June 27, 2011. Most funds managed by NEI Investments have
paid a fixed administration fee since autumn 2009. The change is
intended to improve the predictability of the management expense ratios
of the fund.
Currently, the fund pays all of its operating expenses, together with
all applicable taxes, including HST. The main expenses incurred by the
fund include brokerage fees, legal, audit, transfer agent, custodial
services, the costs of financial reporting, the costs of prospectus
printing and regulatory filing fees, as well as the costs associated
with the independent review committee.
As is the case with other mutual fund groups which have implemented
similar pricing arrangements, the fixed administration fee will cover
operating expenses other than brokerage commissions, applicable taxes,
including GST, borrowing costs, the costs of the independent review
committee and costs associated with any future regulatory changes.
Unitholders of the fund will be asked to approve this change at a
meeting to be held on June 27, 2011. If approved, the fixed
administration fees will be effective retroactive June 1, 2011. Full
details of these transactions will be contained in the information
circular to be provided to unitholders.
In addition, the Class B unitholders will receive notice that their
units will be re-designated by NEI Investments into the Class A Units
of the fund on or about the close of business on June 24, 2011.
For more information please visit: www.NEIInvestments.com.
ABOUT NEI INVESTMENTS
NEI Investments is a national investment firm with $5 billion in assets
under management. In simple terms, NEI Investments' mission is to
provide high quality, unique investment solutions. The Northwest Funds
and Ethical Funds product suites provide investors with a full range of
fund management styles as well as conventional and sustainable
NEI Investments is owned 50% by the Provincial Credit Union Centrals and
50% by Desjardins Group, united in their focus to strengthen and serve
the cooperative financial movement across Canada. This backing of
experience and vast resources provides economies of scale and allows
NEI Investments to actively support business growth in these networks
as well as independent advisor channels.
NEI Investments has offices in Toronto, Vancouver and Montreal.
SOURCE NEI Investments
For further information:
SVP, Legal, CCO & Corporate Secretary
Phone: 416 933-6288
Phone: 416 933-6268