Toronto-based Brandes Investment Partners & Co. is proposing to terminate three corporate class mutual funds as a result of the federal government’s decision earlier this year to eliminate the tax-deferral features of these types of funds.

The mutual funds affected are Brandes Global Equity Class, Sionna Canadian Equity Private Pool and Greystone Canadian Equity Income & Growth Class, according to the announcement on Wednesday by Brandes, which is more commonly known as Bridgehouse Asset Managers.

The termination of the funds is subject to regulatory approval and security holders’ approval. There will be a meeting for investors within the funds on or about Feb. 17, 2017 for the purpose of seeking approval. If the proposal is accepted, the investors of the terminated funds will receive securities of the equivalent series of a continuing fund on or about Feb. 24.

The continuing funds are:

  • Brandes Global Equity Fund in place of Brandes Global Equity Class
  • Sionna Canadian Equity Fund in place of Sionna Canadian Equity Private Pool
  • Greystone Canadian Equity Income & Growth Fund in place of Greystone Canadian Equity Income & Growth Class

In anticipation of the proposed mergers, the terminating funds will be closed to new purchases, excluding pre-authorized debit plan purchases, at the close of business on Dec. 7.

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