Fidelity Investments Canada Ltd. announced today that it is winding-up its 17 RSP Funds effective June 24.
After the Federal Budget in February 2005 proposed eliminating the 30% limit on foreign content for registered plans, Fidelity announced that it would eliminate its RSP Funds once the legislation was approved.
Fidelity says it is moving as quickly as possible to eliminate these funds and provide investors with the benefits of more convenient and cost effective foreign investing that is made possible by the new government policy.
Investors in Fidelity RSP funds are not required to take any action as a result of this policy change. The wind-up of these funds means:
- Sales of Fidelity RSP Funds have been suspended (as of June 20);
- Unitholders in Fidelity RSP Funds will receive units of equal value in the corresponding Fidelity foreign funds;
- Unitholders will receive units in the same series and the units will have the same features as they currently have (including the same DSC schedule, if applicable);
- It is anticipated that some of the RSP Funds will pay a special distribution to unitholders of record as of June 23. The special distribution, to be paid on June, will be reinvested in additional units of the RSP Funds immediately prior to the exchange into units of the corresponding foreign fund; and
- Automatic foreign content rebalancing of registered accounts is discontinued effective immediately.