JovFinancial Solutions Inc. and T.E. Investment Counsel Inc. Wednesday provided an update on their previously announced proposal to terminate certain series of several Jov Funds.
The affected funds are: Jov Leon Frazer Bond Fund; Jov Leon Frazer Dividend Fund; and Jov Leon Frazer Preferred Equity Fund (the Jov Leon Frazer Funds); and Jov Prosperity Canadian Fixed Income Fund; Jov Prosperity Canadian Equity Fund; Jov Prosperity U.S. Equity Fund; and Jov Prosperity International Equity Fund (the Jov Prosperity Funds).
Series A, F, O and T of the Jov Leon Frazer Funds were closed to new purchases on Oct. 23, 2014 and Series A, F and I of the Jov Prosperity Funds were closed to new purchases on Jan. 6, 2012.
On Oct. 23, 2014, the companies announced a proposal to merge the affected series with IA Clarington Money Market Fund on Jan. 23, 2015. However, the regulatory exemptions necessary to permit the issuance of units of the IA Clarington Money Market Fund have not been granted.
As a result, unitholders will receive cash proceeds on the termination of the affected series. In order to provide unitholders sufficient time to respond to this change, the companies have elected to defer the terminations until April 17.
Investors in the Jov Leon Frazer Funds and Jov Prosperity Funds may redeem their units at any time up to the close of business on the business day immediately preceding the effective date of the terminations.
Managed accounts of Leon Frazer & Associates Inc. clients hold Series I units of the Jov Leon Frazer Funds, which will not be terminated, and managed accounts of TEIC clients hold Series B and O units of the Jov Prosperity Funds, which will not be terminated, and as a result such managed accounts will be unaffected by the terminations, the companies say.