Toronto-based Aston Hill Asset Management Inc. is proposing the mergers of multiple products as well as announcing that the continuing mutual funds will have a new lead portfolio manager at the helm.
The asset manager is proposing to unitholders that Aston Hill Growth and Income Fund and Aston Hill Global Growth and Income Fund will merge into Aston Hill High Income Fund. The firm is also proposing that Aston Hill Growth and Income Class and Aston Hill Global Growth and Income Class merge with Aston Hill High Income Class.
The merging of the products will result in a lower overall cost in managing the continuing funds and corporate classes as the costs will be spread over a larger asset base. The announcement also states there will be no tax consequences for unitholders as the mergers will be done on a tax-deferred basis and Aston Hill and its affiliates will cover all expenses associated with the mergers.
Special meetings of the unitholders will occur on or about May 9 to approve the mergers while the actual changes will occur on or about May 20 if unitholders approve.
Ben Cheng, Aston Hill’s chief investment officer, will assume lead portfolio manager responsibilities for Aston Hill Growth and Income Fund and Aston Hill Global Growth and Income Class. This change is effective immediately.
“The mandates of the three funds we are discussing today are essentially the same,” says James Werry, CEO of Aston Hill, in a statement. “And we believe it is in security holders interest that we utilize Ben’s strengths on these mandates.”