AIC Limited today announced that as a result of the ending foreign content restrictions it will be winding-up its RSP funds on July 22.
AIC says he removal of the foreign content limit, which received royal assent on Wednesday, means thatthe RSP Funds no longer serve a purpose.
Effective July 4, AIC will terminate its forward contracts and the RSP funds will invest directly in the underlying funds. This will eliminate the additional fees for the forward contracts. As well, effective immediately AIC will waive the additional operating expenses related to the RSP Fund structure.
As part of the wind-up process relief has been obtained from the Canadian Securities Administrators to waive the requirement to notify investors 60 days prior to the termination of the RSP Funds in order to proceed quickly with the terminations.
AIC will wind-up its 10 RSP Funds on July 22, and investors in these funds will receive the equivalent value of their investment in the corresponding underlying mutual fund or pool:
- AIC American Advantage Fund;
- AIC Global Advantage Fund;
- AIC Value Fund;
- AIC World Equity Fund;
- AIC Global Diversified Fund;
- AIC Diversified Science & Technology Fund;
- AIC American Focused Fund;
- AIC American Balanced Fund;
- AIC Global Balanced Fund;
- AIC Private Portfolio Counsel Global Pool
AIC says investors are not required to take any action as a result of this policy change. The wind-up of the RSP funds means:- Sales of the RSP funds will be suspended as of the close of business, Friday July 8, 2005, except for pre-authorized chequing plans or dividend reinvestments;
- Unitholders of the RSP funds will receive units of equal value in the corresponding underlying mutual fund or pool;
- Unitholders will receive units in the same class and the units will have the same features as they currently have (including the same DSC schedule, if applicable); and
- Automatic foreign content rebalancing of registered accounts is discontinued effective immediately.