MONTREAL, Dec. 6, 2012 /CNW Telbec/ - As manager of FÉRIQUE (Fonds d'épargne et de retraite des ingénieurs du Québec) Funds, Gestion FÉRIQUE today announced that it has received the required unitholders' approval to proceed with the proposed changes to certain of its funds (FÉRIQUE BOND, BALANCED, DIVIDEND, EQUITY, AMERICAN, EUROPEAN, ASIAN and WORLD) which were previously announced on November 23, 2012. The proposed changes should take effect on or about December 31, 2012.
The proposed changes relate to an increase of the caps established in 2006 to limit the management expense ratios (MERs) of the above-mentioned Funds. The establishment of such caps is an initiative of Gestion FÉRIQUE who seeks to protect the interests of the Funds' unitholders. These MER caps needed to be increased in light of certain factors related to the tax harmonization, the cost increase of Fund management and distribution, as well as the enhancement of the product and services offering.
The MER limits of the Funds will be changed as follows:
MER LIMITS FOR FÉRIQUE FUNDS
|Current MER limits**||0.75%||1.00%||1.25%||1.00%||1.20%||1.25%||1.25%||1.25%|
|Approved MER limits||1.00%||1.50%||1.50%||1.50%||1.65%||1.75%||1.75%||1.75%|
|Current FÉRIQUE Funds MERs*||0.75%||1.00%||1.00%||1.00%||1.10%||1.20%||1.20%||1.20%|
|Industry Median MER***||1.45%||2.29%||2.20%||2.32%||2.43%||2.73%||2.61%||2.55%|
| * As of October 1, 2012
** In effect since September 30, 2006
*** Source: PALTrak Survey, owned by Morningstar Research Inc., as of September 30, 2012
"As a non-profit organization, Gestion FÉRIQUE has the flexibility to adjust its MERs to a level that, based on market fluctuations, permits it to cover its expenses and maintain a reasonable operational reserve without seeking to make a profit", explained Jacques Laparé, Eng., MBA, Chairman of the Board at Gestion FÉRIQUE. "Receiving unitholders' approval of the new limits is a vote of confidence towards the Board and Management team", added Mr. Laparé.
It should be stressed that the proposed changes do not seek to increase the MERs, but only to adjust the cap set forth for each Fund. Even after the proposed increase is implemented, the MER caps will still rank among the lower quartile of comparable funds in Canada, meaning in the lowest 25% range in terms of price.
About Gestion FÉRIQUE
Founded on January 1, 2000, Gestion FÉRIQUE (www.ferique.com) is the manager of FÉRIQUE Funds, launched in 1974 by the Ordre des ingénieurs du Québec. FÉRIQUE is the only not-for-profit mutual fund company in Canada whose sole purpose is to serve the interests of engineers, engineering graduates and their families. The firm offers 10 mutual funds diversified across all asset classes. Management of the Funds is entrusted to renowned investment firms, handpicked by Gestion FÉRIQUE based on their asset class expertise. FÉRIQUE Funds have nearly $1.6 billion in assets under management and close to 22,000 clients.
SOURCE: Gestion Férique Inc.
For further information:
Manon Duhamel, Gestion FÉRIQUE, 514-840-9206 (Ext. 450), [email protected]