Criterion Investments Ltd. has called a special meeting of unitholders of the Criterion Dow Jones-AIG Commodity Index Fund to consider the conversion of the fund to an open-end mutual fund trust from a closed-end investment trust. The meeting will be held in Toronto on April 28.

Criterion says the proposed conversion will provide a number of significant benefits to unitholders, including: improved liquidity; enhanced pricing; risk mitigation through currency hedging; and potential economies of scale by continuously offering its units for sale.

“This proposal is a positive and novel move that we firmly believe is in the best interest of unitholders,” says Ian McPherson, president, Criterion.

A management information circular describing the conversion proposal in greater detail will be mailed to unitholders and filed on SEDAR next week. The conversion remains subject to receipt of all necessary regulatory approvals, including the consent of the Toronto Stock Exchange.

Criterion says the fund represents one of the only pure commodity funds available to Canadians seeking to invest in commodities, rather than commodity companies.

“This asset class provides excellent portfolio diversification for Canadian investors because commodities have historically been negatively correlated to equities and bonds,” says McPherson. “Not to mention that commodities also provide a valuable hedge against inflation.”

Criterion In is the retail structured products affiliate of VenGrowth Asset Management Inc.