Calgary-based Canoe Financial LP has completed the merger of Canoe U.S. Strategic Yield Advantaged Fund, the terminating fund, into Canoe North American Monthly Income Class, the continuing fund.
Canoe North American Monthly Income Class is an open-end mutual fund that aims to provide income and long-term capital growth by investing primarily in high-yielding equity securities and corporate bonds of North American issuers, according to Canoe’s announcement released on Tuesday.
The assets of Canoe U.S. Strategic Yield Advantaged Fund have been transferred into Canoe North American Monthly Income Class. Each unitholder of Canoe U.S. Strategic Yield Advantaged Fund has received Series Z shares of the continuing fund, with those shares having the same aggregate net asset value as the respective units of the terminating fund as of the close of business on May 20,.
Unitholders holding the U.S. dollar version of the terminating fund have received Series Z shares of Canoe North American Monthly Income Class under the U.S. dollar purchase option.
“The U.S. dollar option is offered as a convenience to allow existing investors to purchase and redeem Series Z shares of the continuing fund using U.S. dollars,” Cano’s announcement states. “The overall performance of an investment in Series Z of the continuing fund is the same, regardless of whether the shares are held under the Canadian dollar option or the U.S. dollar option. The U.S. dollar option does not hedge or protect against losses caused by fluctuations in the exchange rate between Canadian and U.S. dollars.”
Unitholders approved the merger at a special meeting held on Jan. 15.