TORONTO, April 12 /CNW/ - AGF Investments Inc. and Acuity Funds Ltd.
today announced special investor meetings will be held on May 18, 2011
to seek approval for mergers or amalgamation of some overlapping AGF
and Acuity funds.
"At AGF we are committed to working in the best interests of investors
and ensuring the solutions we offer meet their needs," said Gordon
Forrester, AGF Executive Vice-President, Marketing & Product and Head
of Retail. "Today's announcement is a positive step that will benefit
investors. The majority of Acuity and AGF assets are unaffected by the
mergers and the Acuity funds will continue to be managed by Acuity
Forrester also noted that merging the Acuity closed-end funds into trust
funds will remove the embedded discount to the net asset value (NAV)
within these closed-end funds and so provide investors with a fair
market price of the security. It will also allow investors to have
easier access to a broader suite of products.
The May meetings follow AGF Management Limited's acquisition of Acuity
earlier this year.
At the meetings, investors of Acuity retail and pooled funds that are
not merging will be asked to approve changes to the applicable
declarations of trust at the meetings. As well, investors are being
given notice that Acuity funds' administrative and operations
processes, auditors, custodian and documentation are being aligned with
AGF's over the next few months. Proxy circulars are expected to be
mailed in the coming week.
AGF and Acuity investors of the merging funds can vote on the proposed
mergers of the following trust, closed-end and pooled funds. All
mergers, with the exception of the taxable mergers of Alpha Global
Portfolio into AGF Elements Global Portfolio, AGF Canadian All Cap
Equity Fund into Acuity All Cap 30 Canadian Equity Fund and Acuity
Pooled Dividend Fund into Acuity Pooled Growth & Income Fund, will be
done on a tax-deferred basis. As a result, the continuing funds will
have a deemed year end on the date of the merger, and thus may be
required to pay a distribution on that day.
Trust Fund Mergers:
AGF Canadian All Cap Equity Fund into Acuity All Cap 30 Canadian Equity
AGF Pure Canadian Balanced Fund into Acuity Conservative Asset
Acuity Canadian Equity Fund into AGF Canadian Stock Fund
Acuity Global Dividend Fund into AGF Global Dividend Fund
Acuity Global High Income Fund into AGF Global Dividend Fund
Acuity Money Market Fund into AGF Canadian Money Market Fund
(Acuity) Alpha Balanced Portfolio into AGF Elements Balanced Portfolio
(Acuity) Alpha Income Portfolio into AGF Elements Yield Portfolio
(Acuity) Alpha Global Portfolio into AGF Elements Global Portfolio
(Acuity) Alpha Growth Portfolio into AGF Elements Growth Portfolio
Acuity Dividend Fund into Acuity Growth & Income Fund
Closed-End Fund Mergers into Acuity Trust Funds:
Acuity Focused Total Return Trust into Acuity Growth & Income Fund
Acuity Growth & Income Trust into Acuity Growth & Income Fund
Acuity Small Cap Corporation into Acuity Canadian Small Cap Fund
Pooled Fund Merger:
Acuity Pooled Dividend Fund into Acuity Pooled Growth & Income Fund
Assets of the closed-end funds will be transferred to the continuing
Acuity trust funds at their valuation amounts to calculate net asset
value. The level of distributions of the continuing trust funds will
be different than the current distributions for the closed-end funds.
As well, any outstanding loans of the closed-end funds will be paid off
prior to the mergers because the continuing trust funds are not
permitted to borrow or generally leverage. A final distribution
(including the regular June distribution and any net income or net
realized capital gains in the merging closed-end funds) is expected to
be paid in cash on July 7, 2011, to investors of record of the affected
closed-end funds, prior to the mergers taking effect.
If fees are higher in the continuing fund, existing investors of the
merging fund will have their fees grandfathered on existing assets
prior to the effective dates of the mergers.
If approved by both investors and regulators, as applicable, the
closed-end fund mergers will take effect on or about July 8, 2011, and
the trust fund and pooled fund mergers will take effect on or about
August 26, 2011. The final TSX trading date for the closed-end funds
is expected to be June 30, 2011.
Investors will also be asked to vote on issues dealing with corporate
class funds, including:
The amalgamation of Acuity Corporate Class Ltd. ("ACCL") and AGF All
World Tax Advantage Group Limited ("AWTAG") (each is a mutual fund
corporation that offers classes that are effectively separate corporate
class mutual funds) into a single mutual fund corporation also to be
known as AGF All World Tax Advantage Group Limited ("Amalco")
Merger of Acuity All Cap 30 Canadian Equity Class with AGF Canadian
Growth Equity Class, to continue as "AGF Canadian Growth Equity Class"
Merger of Acuity Natural Resource Class with AGF Global Resources Class,
to continue as "AGF Global Resources Class" in Amalco
All other existing classes of AWTAG will continue as classes of Amalco
and AGF Investments Inc. will continue as Amalco's investment fund
manager. The two other classes of ACCL not merging (Acuity High Income
Class and Acuity Diversified Income Class) will continue as classes of
Amalco, to be known as AGF High Income Class and AGF Diversified Income
If approved by both investors and regulators, the proposed amalgamation
and corporate class fund mergers will take effect on or about October
Full details of the proposed changes are being sent to current investors
as part of the proxy circulars, and may be obtained by prospective
investors from AGF or Acuity prior to the meetings.
About AGF Management Limited
AGF Management Limited is one of Canada's premier independent investment
solutions firms with offices across Canada and subsidiaries around the
world. AGF's products include a diversified family of award-winning
mutual funds, mutual fund wrap programs and pooled funds. AGF also
manages assets on behalf of institutional investors including pension
plans, foundations and endowments as well as for private clients. In
addition, AGF Trust is a complementary business that offers GICs, loans
and mortgages through the financial advisor and mortgage broker
channels. With approximately $52 billion in total assets under
management, AGF serves more than one million investors. AGF trades on
the Toronto Stock Exchange under the symbol AGF.B.
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