United Financial Corp. intends to merge each United Diversified Fund into its corresponding United Value Fund and United Growth Fund, the manager of the United Funds said Wednesday.

The current investment mandate of each United Diversified Fund is comprised of a combination of a value mandate and a growth mandate. Under the proposal, each merger will involve the United Diversified Fund merging a portion of its assets into the United Value Fund and a portion into the United Growth Fund.

Canadian Equity Diversified Pool will be merged into Canadian Equity Value Pool (60%) and Canadian Equity Growth Pool (40%).

Canadian Equity Diversified Corporate Class will be merged into Canadian Equity Value Corporate Class (60%) and Canadian Equity Growth Corporate Class (40%).

US Equity Diversified Pool will be merged into US Equity Value Pool (50%) and US Equity Growth Pool (50%).

US Equity Diversified Corporate Class will be merged into US Equity Value Corporate Class (50%) and US Equity Growth Corporate Class (50%).

International Equity Diversified Pool will be merged into International Equity Value Pool (50%) and International Equity Growth Pool (50%).

International Equity Diversified Corporate Class will be merged into International Equity Value Corporate Class (50%) and International Equity Growth Corporate Class (50%).

“The mergers will streamline and simplify our lineup while putting investors into pools with more precise investment mandates than the blended mandates of the diversified funds,” says Steven Donald, president and COO of United Financial. “The mergers will not change investors’ overall market exposure or reduce their ability to build a diversified portfolio, according to their preferences, using the United lineup.”

In each merger, assets of the United Diversified Fund will be sold in return for units or shares (as applicable) of the United Value Fund and United Growth Fund. The United Diversified Fund then will terminate and each investor’s units or shares of the United Diversified Fund will be replaced with a proportionate number of units or shares of both the United Value Fund and the United Growth Fund.

While the mergers involving Canadian Equity Diversified Pool, US Equity Diversified Pool and International Equity Diversified Pool will not be eligible for tax-free rollover treatment, United Financial expects that the mergers will result in minimal, if any, tax liability for such United Diversified Funds and their unitholders.

The mergers involving Canadian Equity Diversified Corporate Class, US Equity Diversified Corporate Class and International Equity Diversified Corporate Class will be eligible for tax-free rollover treatment for their shareholders.

To the extent that any such United Diversified Fund disposes of units of another United Diversified Fund as a result of a merger, United Financial expects that the disposition will result in minimal, if any, tax liability.

Investors in each United Diversified Fund will be asked to approve its merger at special meetings of securityholders to be held on May 22. Subject to approval, the mergers will take effect after the close of business on May 22.

New advisor for International Equity Growth Pool, International Equity Growth Corporate Class

In addition, United Financial announced that CI Global Holdings Inc., which carries on business as Cambridge Advisors of Boston and is a subsidiary of CI Investments Inc., has been appointed portfolio manager of a portion of International Equity Growth Pool and International Equity Growth Corporate Class, effective May 22. The remainder will continue to be managed by Picton Mahoney Asset Management.

Cambridge Advisors currently manages the growth portion of International Equity Diversified Pool and International Equity Diversified Corporate Class. Cambridge is led by Alan Radlo, senior vp, portfolio Management, who has more than 25 years of experience in managing Canadian, U.S. and global large and small-cap equity portfolios.

There are no other changes to the portfolio management of the continuing funds.

IE