Mississauga, Ont.-based Excel Funds Management Inc. Friday announced a proposed merger of one of its mutual funds.

Excel proposes that Excel Capital Income Fund be merged into Excel High Income Fund. If approved, the merger will be effective on or about November 17.

Securities of Excel Capital Income Fund have not been offered for investment as at April 8, 2013, following the March 2013 federal budget which included measures that would eliminate certain tax benefits in investment funds that use forward contracts to convert income to capital gains for tax purposes.

Excel Capital Income Fund will be wound up as soon as possible following the merger.

Securityholder approval for Excel Capital Income Fund will be sought at a special meeting to be held on November 13. Full details of the proposed merger will be set out in a notice of meeting and a management information circular.

Excel Funds offers a wide selection of emerging markets funds to Canadian investors.