The Fédération des caisses Desjardins du Québec announced today the termination of the RSP clone funds of the Desjardins Funds family.
Desjardins American Equity Value RSP Fund, Desjardins Global Equity Value RSP Fund and Desjardins Overseas Equity Value RSP Fund will be terminated on August 12.
Desjardins CI Value Trust RSP Fund, the Desjardins Fidelity Small Cap America RSP Fund and the Desjardins Fidelity International Portfolio RSP Fund will be terminated on August 19.
On termination, investors in the clone funds will receive units of an equal value in the corresponding Desjardins underlying funds.
This measure follows the repeal the 30% foreign content limit applicable to registered plans, which received royal assent on June 29.
Desjardins says unitholders of the clone funds need take no action pending termination. As of June 30, each of the clone has terminated its forward contract and is now fully invested in units of its corresponding Desjardins Underlying Fund.
Consequently, on July 1 the management fees and management expense ratio cap related to each Desjardins RSP Fund were lowered to the level of its Desjardins Underlying Fund.
The sale of units of Desjardins American Equity Value RSP Fund, Desjardins Global Equity Value RSP Fund and Desjardins Overseas Equity Value RSP Fund will be terminated on August 5.
The sale of units of Desjardins CI Value Trust RSP Fund, Desjardins Fidelity Small Cap America RSP Fund and Desjardins Fidelity International Portfolio RSP Fund will stopped on August 12.
Certain of the clone funds may pay a special distribution in additional units to their unitholders immediately before the switch to units of the corresponding Desjardins underlying fund. Where applicable, this special distribution will be paid on August 12 or August 19.
Desjardins sasys the automatic rebalancing of foreign content in Desjardins investors’ registered accounts has been stopped.
It adds that changes will be brought to the portfolios of the Diapason asset allocation service to replace, if need be, each clone fund by its respective Desjardins underlying fund.