(August 3 – 14:50 ET) – Nova Bancorp Group (Canada) Ltd. is announcing a number of proposed changes to the Navigator, Nova and SVC O’Donnell families of mutual funds that are managed by its affiliates.

The proposals are part of the reorganization following the acquisition of Strategic Value Corp.on June 8. Unitholder and shareholder meetings for the funds have been called for August 28 to approve those changes.

Central to the changes is the adoption of the “StrategicNova” banner and the consolidation of the funds under one manager, StrategicNova Funds Management Inc., formerly named SVC O’Donnell Funds Management Inc.

Mergers of several funds and changes in the investment objectives of several
other funds are also proposed.

The proposed fund mergers will involve the assets of 11 mutual funds
being merged into other certain other funds. The details of the fund mergers are as follows:

Navigator Canadian Focused Growth Portfolio merges with O’Donnell Canadian Emerging Growth Fund to create StrategicNova Canadian Small Cap Fund.

Navigator Canadian Growth Income fund merges with O’Donnell High Income Fund to create the StrategicNova Canadian High Yield Bond Fund.

Navigator Canadian Growth Fund merges with O’Donnell Growth Fund to create StrategicNova Canadian Midcap Growth Fund.

Strategic Value Canadian Balanced Fund merges with Nova Balanced Fund to create StrategicNova Canadian Balanced Fund.

Strategic Value Canadian Equity Fund and Strategic Value Canadian Equity Value Fund merge with Nova Canadian Equity Fund to create StrategicNova Canadian Large Cap Vaue
Fund.

Nova Bond Fund merges with Strategic Value Income Fund to create StrategicNova Income Fund.

Strategic Value International Fund Ltd. merges with Nova International Equity Fund to create StrategicNova World Large Cap Fund.

Strategic Value Money Market Fund and O’Donnell Money Market Fund merge with Nova Short Term Fund to Create StrategicNova Money Market Fund.

Subject to unitholder and regualtory approval, it is anticipated that the mergers will occur on or about October 27.

“The proposed fund mergers will benefit our securityholders by removing duplication and creating larger funds within our fund family while at the same time maintaining the full selection of funds that we currently offer to our investors” said Harry Knutson, president and CEO of Nova Bancorp Group (Canada) Ltd.

Securityholder approval is also being sought for proposed changes to the fundamental investment objective of certain of the mutual funds. Those funds for which such approval is sought are:

  • Navigator American Value Investment Fund (to be renamed StrategicNova U.S. Large Cap Value Fund)
  • Navigator European Equity Fund (to be renamed StrategicNova EuroTech Fund)
  • Navigator Money Market Fund (to be renamed StrategicNova U.S. Dollar Money Market Fund)
  • Nova Canadian Equity Fund (to be renamed StrategicNova Canadian Large Cap Value Fund)
  • Nova International Equity Fund (to be renamed StrategicNova World Large Cap Fund)
  • O’Donnell Balanced Fund (to be renamed StrategicNova Canadian Asset Allocation Fund)
  • O’Donnell Canadian Emerging Growth Fund (to be renamed StrategicNova Canadian Small Cap Fund)
  • O’Donnell U.S. High Income Fund (to be renamed StrategicNova U.S. High Yield Bond Fund)
  • O’Donnell World Equity Fund (to be renamed StrategicNova World Midcap Fund)
  • O’Donnell World Equity RSP Fund (to be renamed StrategicNova World Midcap RSP Fund)
  • Strategic Value American Equity Fund Ltd. (to be renamed StrategicNova U.S. Large Cap Growth Fund Ltd.)
  • Strategic Value Asia and Emerging Markets Fund (to be renamed StrategicNova Emerging Markets Fund)
  • Strategic Value Canadian Equity Fund Ltd. (if the proposed merger into the Nova Canadian Equity Fund is not approved, to be renamed StrategicNova Canadian Large Cap Value Fund Ltd.)
  • Strategic Value Canadian Small Companies Fund (to be renamed StrategicNova Canadian Midcap Value Fund)
  • Strategic Value Commonwealth Fund Ltd. (to be renamed StrategicNova Commonwealth World Balanced Fund)

-IE Staff