Lévis, Que.-based Desjardins Investments Inc. is seeking unitholder approval for investment objective mandates to two funds and a merger of two others, the fund manager announced on Wednesday.
Desjardins proposes to change the investment objective of its Desjardins Canadian Balanced Fund to generate a superior total return by investing globally in mainly equity and fixed-income securities. As well, the new objective will allow for some flexibility in the proportion of assets invested in equity and fixed-income to reflect market conditions.
As well, along with the objective change, Desjardins will also name Hexavest Inc. as the new sub-manager for the fund’s portfolio.
Desjardins also proposes to change the investment objective of its Diapason Conservative Portfolio to generate low long-term capital appreciation and a regular income return. The fund manager plans to meet this objective by investing mutual funds invested in global equities and fixed-income securities.
Finally, Desjardins plans to merge the Diapason Retirement Portfolio G (High Growth) with the Diapason Retirement Portfolio F (Growth) in order to reduce management fees and the management expense ratio (before tax) and to better diversify the portfolio.
A unitholder meeting will be held on Sept. 18 2013 to seek approval for the proposed changes. If approved all changes to the four funds will take place in October 2013.