Industrial Alliance Fund Management Inc. (IAFM), manager of the R Funds, in partnership with its sister company, Industrial Alliance Mutual Funds Inc. (IAMF), manager of the IA Funds, have announced plans to consolidate and reorganize their fund families.

The proposal includes changes in management, trustee, registrar and custodian of the IA Funds and fund mergers involving both the R Funds and IA Funds.

Effective July 8, the manager and trustee of the IA Funds will change from IAMF to its affiliate IAFM. On the same date the registrar of the IA Funds will change from Unisen Inc. to IAFM.

On August 26, the custodian of the IA Funds will change from Canadian Imperial Bank of Commerce to Royal Trust Company. These changes will result in all the mutual fund families under the Industrial Alliance group of companies being moved under a common manager, trustee, registrar, and custodian.

“This reorganization represents a watershed in our ongoing efforts to establish a broad and integrated offering of leading investment options,” said David Scandiffio, president of IAFM, in a release. “With these changes, our clients will be able to choose from a number of compelling investment options across our complete line-up of individual funds and Distinction portfolios that feature full exchangeability and integrated support from our in-house team.”

Subject to unitholder and regulatory approval, the planned fund mergers will take effect on August 26.

IA Canadian Money Market Fund, and R Corporate Treasury Fund will merge with R Money Market Fund.

IA Canadian Bond Fund will merge with R Bond Fund.

IA Canadian Diversified Fund will merge with R Balanced Fund.

IA Canadian Core Equity Fund will merge with R Canadian Leaders Fund.

IA Crystal Enhanced Index World Fund will merge withIA Crystal Enhanced Index America Fund.

IA Credit Suisse Global Equity Fund, R Techno-Media Fund, and R Techno-Media RSP Fund will merge with R Global Equity Fund.

The mergers of IA Canadian Bond Fund to R Bond Fund and IA Canadian Diversified Fund to R Balanced Fund, R Corporate Treasury Fund to R Money Market Fund will be effected as a “qualifying exchange” according to the Income Tax Act. All other fund mergers under this proposal will be completed on a taxable basis.

Under the proposal, IAFM has ensured that all of the terminating funds will be merged into funds with lower or identical management fees.

Special meetings of the terminating funds will be held in Montreal on August 19 for unitholders to vote on the proposed mergers.

Once the the funds become managed by IAFM, investors in each of the fund families will be able to switch between all funds managed by the firm.