Toronto-based Marquest Asset Management Inc. has announced a proposed reorganization of the Marquest Group of Funds.
The reorganization includes five proposed mergers, changes to the investment objectives of certain funds, as well as corresponding changes in fund names and the consolidation of various classes or series of units or shares.
Subject to approvals, the mergers, changes to investment objectives and consolidation are expected to take effect on the close of business on July 9.
In the event that any of the proposals do not receive the applicable approval of securityholders (or class thereof), Marquest may determine to terminate one or more of the merging funds as well as to redeem all of the outstanding classes or series of units or shares comprising the consolidation.
Marquest is proposing to merge the following funds:
|
Merging Fund |
Continuing Fund |
|
Marquest Canadian Balanced Fund |
Marquest Monthly Pay Fund (Corporate Class) |
|
Marquest Dow Jones Canada High |
Marquest Monthly Pay Fund (Corporate Class) |
|
Marquest S&P/TSX Canadian Dividend Aristocrats Fund (Corporate Class) |
Marquest Monthly Pay Fund (Corporate Class) |
|
Marquest International Income Balanced Fund |
Marquest Tax Deferred Income Fund |
|
Marquest International Balanced Fund |
Marquest Tax Deferred Income Fund |
Marquest expects the proposed mergers will increasing operational efficiencies by reducing duplication and allow for increased portfolio diversification opportunities for investors. As well, each continuing fund will benefit from its larger profile in the marketplace. The costs associated with the mergers will be borne by Marquest.
All of the mergers have been reviewed by the Independent Review Committee of the merging funds.
In connection with the changes to investment objectives, Marquest is proposing to implement changes to the investment objectives of certain funds which, in the case of the Marquest Tax Deferred Income Fund, includes, among other things, the unwinding and termination of its forward agreement, a change of name to Marquest Global Balanced Fund and the reopening of this award winning fund to new investors, which is to be effective immediately prior to the completion of the corresponding mergers identified above.
In addition to Marquest Tax Deferred Income Fund, Marquest is proposing the changes to the investment objectives of Marquest American Dividend Growth Fund (Corporate Class) and Marquest Covered Call Canadian Banks Plus Fund (Corporate Class).
As part of Marquest’s proposed consolidation of various classes or series of units or shares. Class or series T8 and T-F8 units or shares offered by certain funds shall no longer be issued and shall be exchanged for class or series A and AA units or shares.
Marquest is proposing to hold special meetings of securityholders of the funds on July 7, connection with the reorganization.