Toronto-based Capital International Asset Management (Canada), Inc. Tuesday proposed changes to one of its mutual funds, Capital International – U.S. Equity.
The proposed modifications include a change to the fund’s investment objective and the merger of a private fund, Capital Group Canadian Private Trusts – U.S. Equity into Capital International – U.S. Equity.
The firm says the proposed fund merger would result in a broader investment universe and a new portfolio management team.
If approved, the new investment objective of the continuing fund will change from:
> long-term growth of capital through investments in a portfolio comprised primarily of equity securities of large U.S. issuers and securities whose principal markets are in the U.S. (including American Depositary Receipts (ADRs) and other U.S.-registered foreign securities);
to:
> long-term growth of capital and income through investments primarily in common stocks of U.S. issuers.
In addition, corresponding changes will be made to the investment strategies of the fund, and the fund’s sub-advisor will change from its current Capital Guardian Trust Company to Capital Research and Management Company, both Capital Group affiliates.
The proposed changes will be voted on at a special meeting of Capital International – U.S. Equity securityholders on Jan. 7, 2014, in Toronto.
If approved, the merger will be effective on or about Jan. 31, 2014. Securityholders who hold units of Capital Group Canadian Private Trusts – U.S. Equity on the merger date will receive an equal number of units of the continuing fund.
If the proposed investment objective change and merger are each not approved, Capital International – U.S. Equity will be terminated on March 31.
Capital International Asset Management (Canada), Inc. and Capital International portfolios are part of Los Angeles-bsed Capital Group, a global investment management firm.