(October 16 – 11:10 ET) – Dynamic Mutual Funds plans to merge some of its funds.
Dynamic will ask unitholders to approve mergers of the Dynamic Global Income & Growth Fund with the Dynamic Global Partners Fund; and Dynamic Power Canadian Fund with the Dynamic Power Canadian Growth Fund. The Dynamic Power Canadian Growth Fund will retain the fee structure of the Dynamic Power Canadian Fund.
The Power Canadian Growth Fund has about $894 million under management, and has posted a 23.9% return in the year to date. Power Canadian has $620 million under management and has returned 21.6% this year. Both are managed by Rohit Seagal.
The mergers will result in unitholders of Dynamic Global Income & Growth Fund receiving units of Dynamic Global Partners Fund, and unitholders of Dynamic Power Canadian Fund receiving units of Dynamic Power Canadian Growth Fund in exchange for their existing units. Each merger will be effected on a tax-free, roll-over basis. The firm says these mergers will result in larger funds which should experience greater operating efficiencies due to economies of scale.
The unitholder meetings to approve the proposed mergers is scheduled for 09:00 ET on November 14 at the Toronto Board of Trade. If approved, it is expected that the mergers will be effective on November 24.
-IE Staff