TORONTO, March 18, 2025 /CNW/ - 1832 Asset Management L.P., as manager of Dynamic Funds (the "Manager"), today announced proposed changes to select Dynamic Funds to streamline its lineup, create efficiencies and reduce fees for clients.
Proposed Mergers
The Manager proposes that each series of units of the following mutual funds (each, a "Terminating Fund") be merged into the corresponding series of units of the proposed continuing fund (each, a "Continuing Fund") set out below:
Terminating Fund |
Continuing Fund |
|
Dynamic Credit Spectrum Fund (Series: A, F, FH, H, I and O) |
to merge into |
Dynamic Active Credit Strategies Private Pool |
Dynamic European Equity Fund (Series: A, F, I and O) |
to merge into |
Dynamic International Dividend Private Pool |
Dynamic Blue Chip Equity Fund (Series: A, F, G, I and O) |
to merge into |
Dynamic Global Equity Fund* |
Dynamic Active Retirement Income ETF |
to merge into |
Dynamic Retirement Income Fund* |
*To execute each permitted merger, (i) a new ETF series of Dynamic Retirement Income Fund will be launched, the management fee applicable to series A, F, FH, H and I units will be reduced by 0.05%, and the fixed administration fee applicable to series O units will be reduced by 0.02%, prior to the permitted merger date, and (ii) the fixed administration fee applicable to series A, F, FH, H and I units of Dynamic Global Equity Fund, will be reduced by 0.01%, prior to the permitted merger date.
Securityholders will vote on the proposed mergers of Dynamic Credit Spectrum Fund and Dynamic European Equity Fund (the "Voting Funds"), and the proposed investment objective and reference index changes described below, at special meetings to be held virtually on or about June 18, 2025 (the "Meetings"). In advance of the Meetings, a notice-and-access document will be sent on or about May 16, 2025, to securityholders of record of the Voting Funds as at April 29, 2025. The notice-and-access document will describe how securityholders can obtain a copy of the management information circular (the "Circular") that contains full details of the proposed changes. The notice-and-access document and Circular will also be available on SEDAR+ at www.sedarplus.com.
Subject, as applicable, to obtaining securityholder approval for the mergers of the Voting Funds, the mergers of the Terminating Funds are anticipated to occur on or about July 18, 2025.
The Independent Review Committee of each of the Terminating Funds and the Continuing Funds has reviewed the potential conflict of interest matters related to the proposed mergers and has provided the Manager with either a positive recommendation or approval, as applicable, after determining that each merger, if implemented, would achieve a fair and reasonable result for the Terminating Funds and their corresponding Continuing Funds.
The mergers of each of Dynamic Blue Chip Equity Fund and Dynamic Active Retirement Income ETF (the "Permitted Merger Funds") do not require securityholder approval as each such merger meets the applicable requirements under National Instrument 81-102 Investment Funds for permitted mergers. Notices containing additional details of each such merger will be sent to securityholders of the Permitted Merger Funds.
It is currently anticipated that securityholders of the Terminating Funds can redeem or switch their securities at any time up until the close of business on the business day immediately before the merger. More particulars regarding these matters will be set out in the Circular and notices being sent to securityholders.
All costs and expenses associated with each of the mergers will be borne by the Manager.
Dynamic Strategic Resource Class – Investment Objective and Reference Index Change
The investment objective of Dynamic Strategic Resource Class is proposed to change, as follows:
Current Investment Objective |
Proposed Investment Objective |
Dynamic Strategic Resource Class seeks to provide long-term capital appreciation by investing primarily in resources, which may include oil and gas and physical commodities such as gold, silver, platinum and palladium, and equity securities of businesses involved in resource-based activities. |
Dynamic Strategic Resource Class seeks to provide long-term capital appreciation by investing primarily in global equity securities of companies involved in the exploration, development and production of physical commodities such as precious metals, base metals, critical minerals, uranium, rare earths and/or ferrous metals. |
The Manager also proposes changing the reference index for the performance fee and benchmark of Dynamic Strategic Resource Class, as follows:
Current Performance Fee and Benchmark Reference Index |
Proposed Performance Fee and Benchmark Reference Index |
50% S&P/TSX Capped Energy Index |
MSCI World Metals and Mining Index (C$) |
The proposed investment objective and reference index changes will also be subject to securityholder approval at the Meetings.
In advance of the Meetings, a notice-and-access document will be sent on or about May 16, 2025 to securityholders of record of Dynamic Strategic Resource Class as at April 29, 2025.
The Independent Review Committee of Dynamic Strategic Resource Class has reviewed the potential conflict of interest matters related to the proposed change to the fund's reference index and has provided the Manager with a positive recommendation, after determining that such change, if implemented, would achieve a fair and reasonable result for Dynamic Strategic Resource Class.
Subject to obtaining securityholder approval for the proposed investment objective and performance fee reference index changes, such changes are anticipated to be implemented on or about July 11, 2025.
Fee reductions for Dynamic Global Equity Fund and Dynamic Retirement Income Fund
In connection with the mergers of the Permitted Merger Funds, the Manager will reduce (i) the fixed administration fee applicable to Series A, F, FH, H and I securities of Dynamic Global Equity Fund by 0.01% for each such series; (ii) the management fee applicable to Series A, F, FH, H and I securities of Dynamic Retirement Income Fund by 0.05% for each such series; and (iii) the fixed administration fee applicable to Series O of Dynamic Retirement Income Fund by 0.02%.
It is anticipated that the fee reductions for Dynamic Global Equity Fund will be effective on or about July 18, 2025, and the fee reductions for Dynamic Retirement Income Fund will be effective on or about May 1, 2025.
Termination of Dynamic Active Energy Evolution ETF
The Manager also announces its intention to terminate Dynamic Active Energy Evolution ETF. The termination date of Dynamic Active Energy Evolution ETF will be on or about July 18, 2025. A notice will be mailed to securityholders of Dynamic Active Energy Evolution ETF at least 60 days prior to the termination date.
The Manager will request the Toronto Stock Exchange ("TSX") to voluntarily de-list all series of Dynamic Active Energy Evolution ETF from the TSX on or about July 14, 2025, with all securities still held by investors being subject to a mandatory redemption as of the date of termination.
On or before the termination date, the Manager will liquidate the assets of Dynamic Active Energy Evolution ETF and, after paying or making adequate provision for the fund's liabilities, distribute the cash proceeds on a pro rata basis to Dynamic Active Energy Evolution ETF's securityholders of record on the termination date. In consideration of the termination, Dynamic Active Energy Evolution ETF may make distributions prior to the termination date if this is deemed in the best interests of the fund and its securityholders. The Manager will issue an additional press release on or about the termination date confirming the final details of the termination.
For more information about Dynamic Funds, please visit the Dynamic Funds website.
Commissions, trailing commissions, management fees and expenses may be associated with mutual fund investments, including ETFs. Please read the prospectus before investing. Mutual funds and ETFs are not guaranteed, their values change frequently, and past performance may not be repeated. Series A units are available for purchase to all investors, while Series F units are only available to investors who participate in eligible fee-based or wrap programs with their registered dealers. Differences in performance between these series are primarily due to differences in management fees and fixed administration fees. Performance results for Series F units may also appear higher than for Series A units as the management fee does not include the trailing commission.
About Dynamic Funds
Dynamic Funds is a division of 1832 Asset Management L.P., which offers a range of wealth management solutions, including mutual funds, actively managed ETFs, liquid alternative mutual funds and investment solutions for private clients, institutional clients and managed asset programs. 1832 Asset Management L.P. is a limited partnership, the general partner of which is wholly owned by Scotiabank. Dynamic Funds® is a registered trademark of The Bank of Nova Scotia, used under license by, and is a division of, 1832 Asset Management L.P.
© Copyright 2025 The Bank of Nova Scotia. All rights reserved.
Website: www.dynamic.ca| X : @DynamicFunds | LinkedIn: https://www.linkedin.com/company/dynamic-funds/
SOURCE Dynamic Funds
CONTACT INFORMATION: For media enquiries, please contact: Alex Mathias, Global Wealth Management Communications, Scotiabank, E-mail: [email protected], 647-537-8036
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