MONTRÉAL, June 6, 2018 /CNW Telbec/ - Professionals' Financial - Mutual Funds Inc. ("FDP"), as investment fund manager of the FDP Short Term Fixed Income Portfolio (the "Short Term Fund"), the FDP US Dividend Equity Portfolio (the "US Dividend Fund") and the FDP US Index Equity Portfolio (the "US Index Fund"), announces that it intends to proceed with the termination of the Series A of the Short Term Fund on or about August 31, 2018 (the "Termination Date") and that it proposes to merge the US Dividend Fund into the US Index Fund also on or about August 31, 2018 (the "Merger Date").
Termination of Series A of the Short Term Fund
As the asset level and the number of unitholders do not meet its expectations, FDP has decided to proceed with the termination of the Series A of the Short Term Fund.
From June 6, 2018, no new investment or additional investment in the Series A of the Short Term Fund will be accepted, including from current unitholders and through the periodic investment plan.
Unitholders in the Series A of the Short Term Fund can have their units redeemed or transfer their investments to any other mutual fund of the family of public funds of FDP before the Termination Date. The unitholders are encouraged to discuss the available investment options with their financial advisor.
Unitholders will not be required to pay transfer or redemption charges in connection with the termination of the Series A of the Short Term Fund. As required by securities regulations, a notice of the termination has been sent to the unitholders of the Series A of the Short Term Fund.
Proposed Merger of the US Dividend Fund into the US Index Fund
As the asset level and the number of unitholders do not meet its expectations, FDP proposes the merger of the US Dividend Fund into the US Index Fund. FDP believes that the proposed merger would be beneficial to unitholders of the US Dividend Fund and unitholders of the US Index Fund because it would enable a decrease in operating costs as the asset under management of the US Index Fund would double. Also, current unitholders of the US Dividend Fund would receive units of the US Index Fund that have a management fee that is the same as, or is lower than, that charged in respect of the series of units of the US Dividend Fund that they currently hold.
FDP proposes to merge the US Dividend Fund into the US Index Fund, effective on the Merger Date, provided that it receives the recommendation from the independent review committee of the funds and the required unitholder and regulatory approvals. Approval from unitholders of the funds will be sought at meetings to be held on or about August 27, 2018. In advance of the meetings, full details of the proposed merger will be set out in a notice of meetings and a management information circular that will be made available in July 2018 to unitholders of record as at July 16, 2018. The notice of meetings and the management information circular will also be available on SEDAR at www.sedar.com.
From June 6, 2018, the US Dividend Fund will be capped to new investors. Any periodic investment plans already in place as of June 6, 2018 will continue uninterrupted, up to and including the business day prior to the Merger Date. If the merger is approved, all holders of units in the US Dividend Fund will receive units of the equivalent series of the US Index Fund on the Merger Date and the US Dividend Fund will be wound up as soon as possible thereafter. The periodic investment plans will automatically transfer to the US Index Fund after the Merger Date.
The proposed merger would be completed on a tax-deferred basis. Any unrealized gains investors have on units of the US Dividend Fund would be deferred until they dispose of units of the US Index Fund. Pre-merger trading activity within the US Dividend Fund necessary to complete the merger may result in the realization and distribution of some capital gains for non-registered unitholders. There would be no tax consequences to registered accountholders.
As a result of the merger, the US Index Fund would be renamed "FDP US Equity Portfolio". Its investment objectives and strategies would not be amended.
If unitholders do not approve the proposed merger, FDP will terminate the US Dividend Fund on or about September 28, 2018 (the "Termination Date").
In the event of termination, unitholders may redeem or switch their holdings in the US Dividend Fund for settlement on, or prior to, the Termination Date. On the Termination Date, FDP will dispose of the US Dividend Fund's assets, reserving any necessary amount to cover the fund's remaining liabilities and distribute to unitholders on the Termination Date their proportionate share of the fund's remaining assets.
About Professionals' Financial
Professionals' Financial offers private management products and services, financial planning solutions, as well as a complete range of mutual funds. Established in 1978 by and for professionals, the Professionals' Financial is committed to keeping its management fees among the lowest in the Canadian market. It is affiliated with the Fédération des médecins spécialistes du Québec, the Association des chirurgiens-dentistes du Québec, the Corporation de service des notaires, the Association des architectes en pratique privée du Québec and the Association québécoise des pharmaciens propriétaires. Thanks to this affiliation, Professionals' Financial is uniquely positioned in terms of impartiality, representation of its clients' interests and market performance.
Visit the Professionals' Financial website at: www.fprofessionnels.com.
SOURCE PROFESSIONALS' FINANCIAL
For further information: Mr. François Landry, Senior Vice-President and Chief Investment Officer, Professionals' Financial, 2 Complexe Desjardins, East Tower - 31st Floor, P. O. Box 1116, Montréal, Québec, H5B 1C2, Telephone: 514-350-5095, Fax: 514-350-5155, [email protected]; For further information: www.fprofessionnels.com