Mawer Investment Management on Tuesday proposed several changes to its family of mutual funds. One of the proposed changes will involve the merger of two Mawer funds into one other continuing fund.

Mawer also proposes to amend the declaration of trust for the funds to create a multi-class structure and to create a new class of Class O Units as well as redesignating the existing units as Class A Units. The company says this proposed change will provide it with more ability to better serve its unitholders by tailoring the attributes of the units to meet specific investor needs.

In addition, Mawer is seeking to change the manager of the funds from Mawer Investment Management to Mawer Investment Management Ltd. The directors and officers of Mawer Investment Management Ltd. will be the same people as the people currently involved with the management of the Mawer Funds.

Other proposed changes include amendments to certain Funds’ investment objectives as well as amendments to the declaration of trust and the investment management services agreement of the Funds to facilitate the proposed changes.

Certain of the proposed changes are subject to unitholder and regulatory approval. Unitholders will receive a proxy package in late June. The concurrent special meetings of unitholders will be held in Calgary, Alberta on July 23.

Fund Mergers

Mawer is proposing to merge the Canadian Income Fund and the High Yield Bond Fund with the Canadian Bond Fund.

“The proposed mergers will benefit our unitholders as the Canadian Bond Fund will have a greater level of assets allowing for increased economies of scale in management systems and servicing,” said Donald Ferris of Mawer Investment Management.

If approved, it is anticipated that the mergers will become effective immediately before the manager files its renewal prospectus at the end of July 2003. The funds will bear none of the costs and expenses relating to the mergers.

The proposed amendments to the Declaration of Trust will allow the trustee on the direction of the manager to issue additional classes of units of each fund and to establish the attributes of the new classes of units of each fund.

The manager proposes the creation of a new class of units called “Class O Units” and the redesignation of the issued and outstanding units as Class A Units. The investors who hold Class O Units will pay management fees determined by negotiation with the manager.

“Mawer is very excited about this proposal because a multi-class structure of units allows us to better meet specific investor needs,” says Donald Ferris.

It is anticipated that the changes will be effective immediately before the Manager files its renewal prospectus at the end of July 2003, if approved by unitholders.

Mawer is also proposes to change the manager of the funds from Mawer Investment Management, a partnership to Mawer Investment Management Ltd., a corporation. The directors and officers of Mawer Investment Management Ltd. who will be involved in the management of the funds will be the same people as those currently involved in the management of the funds.

In addition, Mawer Investment Management Ltd. will enter into a services agreement with Mawer Investment Management to engage its assistance in providing investment advice.

The change of manager will only be effective if regulatory approval is granted and if the manager secures a favourable advance tax ruling from the Canada Customs and Revenue Agency.

Unitholders are also being asked to approve proposed changes to the investment objectives of the Canadian Diversified Investment Fund and the Canadian Balanced Retirement Savings Fund to provide for flexibility of such Funds to invest up to all of their assets in other Mawer Funds.