Toronto-based 1832 Asset Management L.P. (1832 LP), the manager of Dynamic Funds, announced proposals on Friday to change the investment objectives of Dynamic Power Managed Growth Class and Dynamic Alternative Investments Private Pool Class funds.
The company is proposing the investment objective of Dynamic Power Managed Growth Class be modified to focus on dividend growth and notes the fund will maintain its focus on investing primarily in the equity securities of Canadian businesses. If unitholders approve this change, the name of the fund would change to Dynamic Power Dividend Growth Class.
1832 LP is also proposing a change to the investment objective of Dynamic Alternative Investments Private Pool Class. The new objective would emphasize the fund’s focus on diversification and long-term capital appreciation. It would also remove the reference to specific asset classes as the fund actually allocates across a broad range of alternative asset classes, states the firm’s announcement.
The investment objective for the fund currently refers to a focus on securities in real estate, energy, infrastructure and precious metal businesses.
The firm is also proposing to use the Morningstar Diversified Alternatives Index (US$) as the performance fee index for the Dynamic Alternative Investments Private Pool Class if the modified investment objective is approved. This would replace the current blended performance fee index of the fund, which consists of seven indices.
“[The new performance fee index will] simplify the performance fee calculation for the fund and achieve better alignment with the proposed new investment objective,” states the firm’s announcement. “The performance fee index is a reference index against which the performance of the fund is measured for the purpose of determining the amount of performance fees that the fund may pay to 1832 LP.”
The unitholders of these funds will meet on Dec. 16 in order to consider the proposed changes.