Ferique funds manager Gestion Ferique announced on Friday that Ferique funds unitholders appointed Ernst & Young LLP as auditors of the Ferique funds, approved a modification of the fee structure of the funds, and a modification of the investment objectives of the Ferique short-term income, Ferique bond and Ferique balanced funds approved at special meetings held on Aug. 31.

The unitholders of the Ferique funds approved the appointment of Ernst & Young LLP, chartered accountants, as auditors of the Ferique funds.

The unitholders also approved a modification of the basis of calculation of the management fees payable by the Ferique funds to Gestion Ferique, in order to allow Gestion Ferique to maintain a reasonable reserve for its operations. The amount of the reserve will be limited by the tax rules applicable to Gestion Ferique as a not-for-profit organization and by a cap on the management expense ratio (composed of the operating expenses and the management fees payable to Gestion Ferique) of each fund. The approval also covers a modification of the current allocation of the funds’ expenses between Gestion Ferique and the Ferique funds, in order to facilitate their comparison with other mutual funds.

The unitholders of the Ferique short-term income, Ferique bond and Ferique balanced funds also approved a modification of the investment objectives of their respective funds in order to withdraw specific references to portfolio composition, and to rather disclose such characteristics as investment strategies which may be modified without the prior approval of the unitholders.

The appointment of Ernst & Young LLP as auditors of the Ferique funds comes into force on Sept. 1. The modification to the current allocation of the funds’ expenses between Gestion Ferique and the Ferique funds will come into force on or around Jan. 1, 2007. The other modifications will come into force on or around Sept. 30 or as soon as the simplified prospectus and annual information form of the Ferique funds will have been amended to reflect the modifications.