McLean Budden, Sun Life propose fund mergers

MFS McLean Budden will appoint MFS Institutional Advisors, Inc. (MFSI), the parent of MFS McLean Budden, as a sub-advisor to McLean Budden Global Equity Fund, McLean Budden International Equity Fund and the McLean Budden American Equity Fund, on March 5, 2012.

In addition, several other change changes to the funds will take effect April 2, 2012:

• the trust agreement governing the funds other than the McLean Budden LifePlan mutual funds will be amended to allow MFS McLean Budden to appoint Sun Life Global Investments as the manager of the Funds, upon notice to unitholders;
• the trustee of the funds will change from RBC Dexia Investor Services Trust to Sun Life Global Investments. RBC Dexia will continue to serve as custodian and recordkeeper for the funds;
• the manager of the funds will cease absorbing the funds’ expenses and thus administrative expenses will be payable by the funds;
• the management fees of certain classes of the funds will be changed;
• certain classes of the funds will be reclassified into the same or a different series of the fund;
• the names of certain funds will change to reflect Sun Life Global Investments’ role as manager and to highlight the sub-advisors for the funds.
• the auditors for certain funds will change to Ernst & Young LLP from Deloitte & Touche LLP.

MFS McLean Budden and Sun Life Global Investments also propose to merge several funds on April 2:

MFS McLean Budden and Sun Life Global will seek the approval of unitholders of each of McLean Budden Real Return Bond Fund, McLean Budden Global Bond Fund, McLean Budden LifePlan Retirement Fund, McLean Budden LifePlan 2020 Fund, McLean Budden LifePlan 2030 Fund, Sun Life MFS Global Growth Fund, Sun Life MFS International Growth Fund, Sun Life McLean Budden Canadian Bond Fund and Sun Life Managed Conservative Portfolio at special meetings to be held on March 23.

In connection with a reclassification of units of the funds, the manager will cease waiving its right to the maximum fee and some funds will see small to moderate increases in the actual management fee that is charged to Class A and D units, effective April 2.

These increases range from between 0.05% to 0.25% and affect approximately 1% of the assets of the Funds. In addition, the Class A, D, F and VMD units of some other Funds will see fee decreases of 0.20% to 0.30%.

Less than 1.5% of unitholder accounts will experience a management fee increase, while almost 5% of unitholder accounts will experience a management fee decrease. Almost 94% of unitholder accounts will see no change to their management fees.

Any further management fee increases would be subject to unitholder approval.