Montreal-based Desjardins Investments Inc. (DI) is proposing changes to the investment objectives on two of its products: SocieTerra Growth Portfolio and Desjardins Quebec Balanced Fund, the company announced Monday.
The proposed changes to the investment objective of the Portfolio are intended to increase the geographic diversification of the fund’s investment portfolio, DI says in a news release.
“The new investment objective will allow to increase exposure to foreign investments to more than 50% of the portfolio. The proposed changes will not, however, change the portfolio’s target asset allocation between fixed-income and equity securities, which will remain at 40% and 60% respectively,” DI says.
Unitholders will meet to vote on these changes on Jan. 23, 2019. If approved, the changes to the Portfolio’s investment objectives will take effect in February 2019.
DI “has approved changes to the investment strategies of the Desjardins Quebec Balanced Fund in order to invest up to 10% of the fixed-income securities portfolio in securities with a DBRS credit rating of BB or less,” the company says.
However, the fundamental objective of the fund will remain unchanged.
These changes to the fund’s investment strategies will be made effective in December.
The changes are subject to approval by regulatory authorities.