Counsel Group of Funds Inc. announced today that it intends to merge its three RSP portfolios into their corresponding non-RSP portfolios, given the recent repeal of the foreign content limits on registered plans.
Each of the RSP portfolios has a corresponding Non-RSP Portfolio with an identical investment objective.
The forward contracts previously used by the RSP portfolios have been terminated so that the RSP portfolios now only hold units of the underlying funds. As a result, the RSP portfolios and the non-RSP portfolios are now effectively the same and Counsel intends to merge them as follows:
- Counsel All Equity RSP Portfolio into Counsel All Equity Portfolio;
- Counsel Balanced RSP Portfolio into Counsel Balanced Portfolio;
- Counsel Growth RSP Portfolio into Counsel Growth Portfolio.
Following the mergers, investors in each RSP portfolio will receive units of the corresponding non-RSP portfolio of equivalent value. As well, these units will be of the same class and will have the same features as they currently have (including the same DSC schedule, if applicable).
Counsel intends to complete each merger and wind up each RSP portfolio on or before September 16.
Distributions from units now held in the RSP portfolios may also continue to be reinvested in the RSP Funds until the time of the mergers.
Investors will have the right to redeem units of the RSP portfolios up to the close of business on the effective date of the mergers. Automatic foreign content rebalancing of registered accounts is discontinued effective immediately.
The mergers are subject to any necessary unitholder and regulatory approvals. Due to the similar nature of the RSP Portfolios and the Non-RSP Portfolios, Counsel is seeking permission from the Canadian securities regulators to implement the mergers without obtaining unitholder approval.
Counsel Group of Funds Inc. has approximately $1.5 billion under management.