Capital International Asset Management (Canada), Inc. plans to merge Capital International – Global Small Cap fund into Capital International – Global Equity fund, the company announced Thursday.

Effective immediately, Capital International – Global Small Cap will be closed to new investors.

“We believe unitholders of the Capital International – Global Small Cap fund will benefit from the greater economies of scale offered by Capital International – Global Equity, which has a larger asset base and a lower MER,” says Capital International President Mark Tiffin. “In addition, both funds have complementary global mandates that seek to provide exposure to global growth companies of different sizes.”

This proposed merger will be effective on or about April 20, subject to approval by regulators and the unitholders of Capital International – Global Small Cap. A positive recommendation from the funds’ Independent Review Committee for the proposed merger was received on Jan, 26.

A meeting of Capital International – Global Small Cap unitholders will be held on April 7. If the merger is approved, Capital International – Global Small Cap unitholders will receive equivalent units of Capital International – Global Equity. If the merger is not approved, Capital International – Global Small Cap will be terminated on April 20.

The Capital International – Global Small Cap fund’s portfolio management and transition team will be overseen by Richard Havas and Habib Annous until the fund’s termination.

IE