Evolution Funds Inc., the manager of the Evolution Funds and the Norbourg Funds, announced Thursday that it intends to reorganize its mutual funds line-up.

As well, the Norbourg Funds have changed their manager from Norbourg Asset Management Inc. to an affiliate, Evolution Funds Inc.

Evolution Funds Inc. will merge funds with similar investment objectives and modify the investment objectives and names of some of the Evolution Funds and the Norbourg Funds. As part of this reorganization, Evolution Funds Inc. will introduce a multi-series structure to the Evolution Funds and the Norbourg Funds.

“The mergers of the Norbourg Funds with Evolution Funds will generate greater cost efficiencies for unitholders through economies of scale, will strengthen the asset base of the continuing funds and will help them to better seize investment opportunities on the Canadian and foreign markets, taking into account the expanded tax rules” said Vincent Lacroix, president and CEO of Evolution Funds Inc.

Evolution Funds intends to merge the following funds. Unitholders of each terminating fund will receive corresponding units of the continuing fund on a dollar-for-dollar basis.

Norbourg Money Market Fund will be merged into Evolution Money Market Fund.

Evolution Balanced Fund, Evolution Canadian Asset Allocation Fund and Norbourg Canadian Tactical Asset Allocation Fund will be merged into Norbourg Balanced Fund.

Evolution Canadian Equity-Value Fund, Evolution Finance and Technology Fund, and Evolution Canadian Demographic Fund will be merged into Norbourg Equity-Special Situation Fund.

Evolution Canadian Equity – Large Cap Fund will be merged into Evolution Quebec Expansion Fund.

Norbourg International Balanced Fund, Evolution World Leaders Fund and Evolution Selection ETF Fund will be merged into Evolution Demographic Trends Funds.

Norbourg Money Market Fund will be merged into Evolution Money Market Fund.

Norbourg Canadian Tactical Asset will be merged with Norbourg Balanced Fund Fund.

Evolution Canadian Asset Allocation Fund will be merged with Norbourg Balanced Fund.

Evolution Canadian Equity – Value Fund will be merged with Norbourg Equity – Special Situations Fund.

Evolution Finance and Technology Fund will be merged with Norbourg Equity – Special Situations Fund.

Evolution Canadian Demographic Fund will be merged with Norbourg Equity – Special Situations Fund.

Evolution Canadian Equity – Large Cap Fund will be merged with Evolution Quebec Expansion Fund.

Norbourg International Balanced Fund will be merged with Evolution Demographic Trends Fund. Evolution World Leaders Fund will be merged into Evolution Demographic Trends Fund.

Evolution Selection ETF Fund will be merged with Evolution Demographic Trends Fund.

In addition, the holders of funds which contain foreign content limitations will be invited to approve their removal following the recent changes to the Income Tax Act.

All mergers will be effected on a taxable basis.

Evolution Funds also intends to change the fundamental investment objectives and investment strategies of the Evolution Bond Fund, the Evolution American Fund, the Norbourg Convertible Debentures Fund and the Norbourg Fixed Income Fund.

The proposed changes are subject to unitholder and regulatory approvals.

Evolution Funds will seek the approval of the unitholders at special meetings of each Norbourg Fund and each Evolution Fund which are scheduled for late September. Unitholders will be sent all applicable meeting material in August.