AIM Trimark Investments on Monday announced a number of changes to its fund families that it says will deliver a simpler and more cost-efficient suite of products to investors and their advisors.

The proposed changes include several fund mergers, which will result in potential savings for investors due to economies of scale that come from the larger, continuing funds.

“These changes should reduce the cost of investing for clients and make it easier for advisors to build and manage portfolios,” sid AIM Trimark chief investment officer and EVP Patrick Farmer.

Other proposed changes include minor amendments to certain funds’ investment objectives, changing portfolio management responsibilities, facilitating distributions from capital and adopting a standardized Declaration of Trust for a number of mutual fund trusts. Certain of the proposed changes are subject to investor and regulatory approval.

These changes come on the heels of a similar move in 2002 when AIM Trimark merged eight funds and amended the investment objectives of two others. If the proposed mergers are approved, AIM Trimark will have reduced its overall mutual fund lineup by approximately 20%over two years.

AIM Trimark will be asking investors to vote on the following proposed changes July 29, 2003:

  • AIM Canadian Leaders Fund to merge with and continue as Trimark Canadian Endeavour Fund;
  • AIM Global Aggressive Growth Class to merge with and continue as AIM Global Theme Class;
  • AIM RSP Global Aggressive Growth Fund to merge with and continue as AIM RSP Global Theme Fund;
  • AIM Global Energy Class to merge with and continue as AIM Global Theme Class;
  • AIM Dent Demographic Trends Class to merge with and continue as AIM Global Theme Class;
  • AIM RSP Dent Demographic Trends Fund to merge with and continue as AIM RSP Global Theme Fund;
  • AIM Global Sector Managers Class to merge with and continue as AIM Global Theme Class;
  • AIM RSP Global Sector Managers Fund to merge with and continue as AIM RSP Global Theme Fund;
  • AIM Global Telecommunications Class to merge with and continue as AIM Global Technology Class; and
  • AIM RSP Global Telecommunications Fund to merge with and continue as AIM RSP Global Technology Fund.

The company is also proposing a change to its line-up of portfolio managers. AIM Trimark will assume primary responsibility for the investment management of Trimark Enterprise Small Cap Fund, taking over from C.A. Delaney Capital Management Inc. Award-winning Trimark Canadian Small Companies Fund portfolio managers Keith Graham and Rob Mikalachki have been named as the new managers effective immediately. In connection with this transition, the Fund will be capped to new purchases (with certain limitations) effective April 17. C.A Delaney Capital Management Inc. will continue as the sub-advisor for Trimark Enterprise Fund.

AIM Trimark is also asking unitholders to approve roposed amendments to the investment objectives of four funds:

  • AIM Short-Term Income Class to amend its investment objectives to meet the requirements of a Canadian money market fund;
  • Trimark Income Growth Fund to amend its investment objectives to provide more clarity and understanding of the investment objectives and strategies of the fund;
  • Trimark Select Balanced Fund to amend its investment objectives to provide more clarity and understanding of the investment objectives and strategies of the Fund; and
  • AIM International Growth Class to amend its investment objectives to provide greater flexibility to the portfolio management team.

.AIM Canada Fund Inc. will also seek shareholder approval to amend its capital structure. The proposal seeks to amend the share conditions to allow AIM Canada Income Class to make distributions out of capital that are more tax-efficient.

As a further means of simplifying its fund families, AIM Trimark is proposing that all of its mutual fund trusts adopt a standard master declaration of trust, as this will lead to greater administrative efficiency and fairness between all investors in AIM Trimark’s lineup of mutual fund trusts. Declarations of trust are the legal documents that establish and govern mutual fund trusts.

This is to be accomplished by amending and restating the existing declarations of trust following consent and approval by investors.