Desjardins announces proposed changes to certain Desjardins funds

LÉVIS, QC, Jan. 13 /CNW Telbec/ - The Fédération des caisses Desjardins du Québec, the Manager of the Desjardins family of mutual funds, announced that it will be seeking the approval of unitholders in connection with proposed changes to the investment objective of the Desjardins Alternative Investments Fund and proposed mergers of certain Desjardins Funds.

It is proposed that the investment objective of Desjardins Alternative Investments Fund be revised to read substantially as follows:

    
    - The investment objective of the fund is to provide both income and
      long-term capital appreciation by investing primarily, either directly
      or by investing in units of other mutual funds, in fixed income
      securities and income oriented equity securities of issuers located
      throughout the world.

    - The Fund aims to provide investors with improved diversification by
      focusing on asset classes that complement a portfolio made up of
      traditional asset classes.
    

The proposed changes to Desjardins Alternative Investments Fund's investment objective are intended to permit enhanced portfolio diversification and the prospect of increased income by providing wider discretion to the Manager as to the types of securities in which Desjardins Alternative Investments Fund will invest. In connection with these changes, if approved, Desjardins Alternative Investments Fund will change its name to reflect its new investment objective.

The Manager is also proposing the following mergers:

    
    1. Desjardins Northwest Specialty Global High Yield Bond Fund to be
       merged into Desjardins Alternative Investments Fund, contingent upon
       the unitholders of Desjardins Alternative Investments Fund approving
       the change to the investment objective of such Fund mentioned above;

    2. Desjardins Enhanced Alternative Investments Fund to be merged into
       Desjardins Alternative Investments Fund, contingent upon the
       unitholders of Desjardins Alternative Investments Fund approving the
       change to the investment objective of such Fund mentioned above;

    3. Desjardins Northwest Specialty Equity Fund to be merged into
       Desjardins Canadian Small Cap Equity Fund;

    4. Desjardins Fidelity True North(R) Fund to be merged into Desjardins
       Canadian Equity Fund which, independent from the proposed merger, will
       be renamed Desjardins Canadian Equity Growth Fund.
    

It is expected that the meetings of unitholders to approve these changes and mergers will be held in March 2010 and that if they are approved, the changes to the investment objective of the Desjardins Alternative Investment Fund will start to be implemented in March 2010 whereas the fund mergers will take effect in May 2010 . The Manager reserves however the right to reschedule implementation of the changes, or one or more of them, to a later date or to not proceed with such changes.

About Desjardins Group

Desjardins Group is the largest cooperative financial group in Canada , and the sixth largest in the world, with overall assets of $163 billion . Drawing on the strength of its caisse network in Québec and Ontario, as well as its subsidiaries, several of which are active throughout Canada , Desjardins offers a full range of financial products and services to its 5.8 million individual and business members and clients. Desjardins Group is also home to a wealth of expertise in property and casualty insurance, life and health insurance, wealth management, services for businesses of all sizes, securities brokerage, venture capital, asset management and secure leading-edge virtual access methods, all part of an integrated offer that is the only one of its kind in Canada . One of the largest employers in the country, Desjardins is backed by the knowledge and skills of its 42,000 employees and the commitment of its 6,300 elected officers. To find out more, consult www.desjardins.com.

For further information: (for media only): André Chapleau, Director, Media Relations, [phone], 1-866-866-7000, ext. 7229, [email protected]