Mississauga, Ont.-based Excel Funds Management Inc. plans to merge two of its mutual funds.

The company Thursday proposed that Excel Income and Growth Fund be merged into Excel EM High Income Fund. If approved, the merger will be effective in November 2012.

If the proposed merger is approved, securities of Excel Income and Growth Fund will no longer be offered for sale beginning September 28, except for securities being sold under pre-authorized chequing plans. Excel Income and Growth Fund will be wound up as soon as possible following the merger

Securityholder approval for Excel Income and Growth Fund will be sought at a special meeting to be held on or about November 2.

The Independent Review Committee of both funds has reviewed the potential conflict of interest matters related to the proposed merger and has provided a positive recommendation for the merger.