(October 5 – 16:55) – CI Mutual Funds Inc. is proposing to merge certain of its mutual funds.
Under the proposal, BPI Canadian Resource Fund Inc. will merge into Signature Canadian Resource Fund, CI Canadian Equity Value Fund will merge into Signature Canadian Fund, and Signature Corporate Bond Fund will merge into Signature High Income Fund.
CI says that securityholders of each terminating fund will exchange their securities for Class A units of the continuing fund on a dollar- for-dollar basis. The fund company says the mergers will reduce duplication in its fund lineup while benefiting securityholders by creating larger, more efficient funds.
Securityholders of BPI Canadian Resource Fund Inc., CI Canadian Equity Value Fund and Signature Corporate Bond Fund will be asked to approve the funds’ respective mergers at special meetings to be held on November 24 in Toronto.
If approved, CI says each merger will take effect after the close of business on or about December 1, and, in any event, not later than December 31. Each merger will be effected on a tax free, rollover basis. CI intends to wind up the terminating funds as soon as reasonably possible following the mergers.
-IE Staff