Toronto-based NEI Investments, which is jointly owned by the provincial credit union centrals and Desjardins Group, is proposing to merge several of its funds, the company announced on Friday.
If approved by unitholders and regulators, the mergers will be effective on Sept. 14.
The proposed mergers are:
- NEI Income Fund into NEI Canadian Bond Fund;
- NEI Northwest Specialty High Yield Bond Fund into NEI Northwest Specialty Global High Yield Bond Fund;
- NEI Northwest Macro Canadian Equity Fund into NEI Northwest Macro Canadian Asset Allocation Fund;
- NEI Northwest Macro Canadian Equity Corporate Class into NEI Northwest Macro Canadian Asset Allocation Corporate Class;
- NEI Select Global Balanced Portfolio into NEI Select Balanced Portfolio; and
- NEI Select Global Growth Portfolio into NEI Select Growth Portfolio.
The proposed mergers will be beneficial to the unitholders of the terminating funds and the continuing corporate class funds, NEI Investment says.
Unitholders of the terminating funds and NEI Northwest Macro Canadian Asset Allocation Corporate Class will be asked to approve the mergers at a meeting to be held on Aug. 31.
If the proposed fund mergers are approved, purchases of, and switches to, securities of a terminating fund will be suspended after the close of business on Sept. 8.
Following the effective date of the mergers, pre-authorized payment plans and automatic withdrawal plans that were established with respect to a terminating fund will be re-established with respect to the applicable continuing fund unless affected unitholders advise otherwise.