Gestion Ferique today announced that it has sent a notice of special meetings and information circular to the unitholders of the Ferique Funds proposing several changes.

Gestion Ferique proposes to appoint Ernst & Young LLP as auditors of the Ferique Funds, to modify the fee structure of the Ferique Funds and to modify the investment objectives of Ferique Short-Term Income Fund, Ferique Bond Fund and Ferique Balanced Fund.

The current auditors of the funds are KPMG LLP, Chartered Accountants. They were first appointed as auditors in 1997. Gestion Ferique has decided not to seek the renewal of the mandate of KPMG as auditors and to seek their replacement by Ernst & Young.

Gestion Ferique also proposes to modify 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 while maintaining its status as a not-for-profit organization. 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 Ferique Fund. Gestion Ferique also proposes to modify the current allocation of the expenses of the Ferique Funds between Gestion Ferique and the Ferique Funds in order to facilitate the comparison of the fee structure of the Ferique Funds with the fee structures of other mutual funds.

Moreover, Gestion Ferique proposes to the unitholders of the Ferique Short-Term Income Fund, Ferique Bond Fund and Ferique Balanced Fund to modify the investment objectives of each of such funds in order to withdraw from such investment objectives certain specific references to the average maturity and/or quality of the securities in which such funds invest and to rather disclose such characteristics as investment strategies which may be modified without the approval of the unitholders of the funds.

Subject to approval of the proposals by unitholders and regulators, the replacement of KPMG by Ernst & Young as auditors will come into force on September 1. The other proposed modifications will come into force no later than September 30, or as soon as the simplified prospectus and annual information form of the Ferique Funds will have been amended to reflect the modifications.