Connor, Clark & Lunn Real Return Income Fund (TSX:RRB.UN) says announces that unitholders have approved a proposal that will result in the merger of the fund and ING Floating Rate Senior Loan Fund (TSX:ISL.UN) at a special meeting held Wednesday.
The merger is expected to be implemented on Jan. 8, 2013.
ING will be the continuing fund and, as a result, unitholders of RRB would become holders of ING Class A units. The objectives of the merger are to provide RRB unitholders with the opportunity to continue their investment in a single fund that will have a larger market capitalization, increased liquidity for the units and a lower management expense ratio.
The investment objectives of ING are to provide holders of ING units with tax-advantaged distributions consisting primarily of returns of capital; preserve capital; and generate increased returns in the event that short-term interest rates rise. The investment strategy of ING is to obtain exposure, in a tax-efficient manner, to the performance of a diversified portfolio consisting primarily of senior, secured floating rate corporate loans and other senior debt obligations of non-investment grade North American borrowers held by ISL Loan Trust and actively managed by ING Investment Management Co. LLC.