Toronto-based Bank of Nova Scotia’s 1832 Asset Management LP, which manages ScotiaFunds, said Thursday that it will seek regulatory and unitholder approval for two fund mergers.
The fund manager proposes the merger of both the Scotia Latin American Fund and the Scotia Pacific Rim Fund into the Scotia International Equity Fund. The larger fund would benefit from scale and operational efficiencies, the firm said in a release.
If approved, the proposed mergers are expected to take effect at the close of business on July 12.
A special meeting for unitholders and a vote is expected to be held around June 14, with unitholders notified of their eligibility to vote around April 25.
Purchases of the terminating funds will be suspended March 15, including purchases under existing pre-authorized contribution plans.
1832 Asset Management is also proposing a 10-basis-point reduction in the fixed administration fee for Series A and Series F of the Scotia International Equity Fund, from 0.35% to 0.25%.
The mergers would take place on a taxable basis and could have tax consequences for unitholders if units are held in non-registered accounts, the firm said.