Montreal-based Desjardins Investments Inc. will merge several of its Desjardins Funds in late November, the company announced Monday.
Desjardins Global Equity Value, the terminating fund, is being merged into Desjardins Global Equity Fund, a fund with similar investment objectives, to simplify Desjardins’ fund lineup and provide lower management fees. This change will take effect on or about Nov. 30.
Chorus II Corporate Class Portfolio will be merged with Chorus II Trust Fund Portfolio because “merging corporate funds into trust funds without tax consequences, as allowed under recent budgetary provisions, is the best solution for fund holders,” the company says in a news release. The terminating funds have become less tax-efficient as a result of federal budget changes in the past few years, Dejardins, adds. After the merger, which will take place on or about Nov. 23, unitholders will enjoy lower management fees.
“All optional plans that are in effect, including preauthorized payment plans, automatic transfer plans, and automatic and periodic withdrawal plans, will continue under the same terms and conditions for the continuing funds,” Desjardins says.
The changes are subject to regulatory approval. The proposed mergers will be completed without tax consequences for investors, and investors will receive 60 days’ prior notice, the company says.
Merger details are available in the company’s news release.