Montreal-based O’Leary Funds Management LP announced on Tuesday revisions to its initial plan concerning changes to O’Leary Canadian Bond Yield Fund resulting from the firm’s merger with Calgary-based Canoe Financial LP, including that the fund will no longer be merged into Canoe Bond Advantage Fund.
The update follows an announcement issued less than two weeks ago about multiple changes to O’Leary funds that are expected to take place upon the closing of a proposed agreement between O’Leary and Canoe to combine their mutual fund businesses, which is expected to be complete in January.
The updated modifications to O’Leary Canadian Bond Yield Fund include:
- The fund will be named Canoe Canadian Corporate Bond Fund.
- There will be a change of manager, trustee and portfolio manager.
- The appointment of Montreal-based Stanton Asset Management Inc. as the fund’s subadvisor.
- An amendment to master declaration of trust.
- The adoption of a fixed administration fee in lieu of floating expenses.
- A change of investment strategies.
The O’Leary announcement also states that a proposed change to the investment objectives of another fund, O’Leary Floating Rate Income Fund, will not occur as was previously announced. The other material changes that were announced in a statement released on Oct. 15 are expected to proceed.
The previous announcement included changes to the names for all O’Leary funds; the investment objectives of certain O’Leary funds; the investment strategies of certain O’Leary Funds; and to have certain O’Leary funds adopt the form of master declaration of trust used by Canoe’s mutual funds. Canoe also intends to merge certain O’Leary funds into mutual funds managed by Canoe within a certain time period after closing.
The proposed merging of O’Leary and Canoe is subject to receiving all necessary unitholder and regulatory approvals as well as satisfying other conditions of closing.