SLGI Asset Management Inc. is terminating two mutual funds that invest in India.
The Sun Life Excel India Balanced Fund and the Sun Life Excel New India Leaders Fund will close on July 30, the asset manager said on Monday.
As part of the termination, SLGI will liquidate the investments of both funds and distribute the proceeds to unitholders.
Both funds are closed to new purchases. SLGI is also waiving the management fees, short-term trading fees and deferred sales charge/low-load sales charge redemption fees for both funds.
A special distribution will be paid to unitholders of the Sun Life Excel India Balanced Fund on Monday in addition to the regular monthly distribution.
The special distribution is expected to cover the total amount of capital gains and foreign income earned by the balanced fund in 2021, less the amounts that have already been distributed.
The balanced fund may be required to pay out an additional distribution if the capital gains and foreign income exceed the estimated amount. If the distributions exceed the capital gains and foreign income earned, the difference will be characterized as a return of capital to investors.
The India Leaders fund will not make a special distribution but may be required to make a final distribution if the fund’s capital gains and foreign income exceed estimates for 2021.
Both funds invest in a distinct class of shares of Excel Funds Mauritius Company Ltd. Once the funds are terminated, Mauritius Company will be wound up.
For further information on the special distributions, see SLGI’s release.