Mackenzie Investments today announced that unitholders have approved the merger of Mackenzie Sentinel Short-Term Bond Fund into Mackenzie Sentinel Mortgage Fund.

Mortgage Fund unitholders have also approved a change in investment objectives for the continuing fund. This will allow for more flexibility in investing in high quality, short-term fixed income securities such as government and corporate bonds in addition to mortgages. Previously, Mortgage Fund invested primarily in NHA-insured residential first mortgages. The changes are effective on November 24.

Coincident with the merger, the name of the newly-merged fund will change from Mackenzie Sentinel Mortgage Fund to Mackenzie Sentinel Short-Term Income Fund to more accurately reflect its broader investment mandate.

In addition, the management fee on Series A units will be reduced from 1.50% to 1.25%, maintaining the lowest fee structure between the two funds. The management fees on other series of units will be reduced to be consistent with the lower of the management fees currently charged between the two funds.

In addition, the continuing fund will maintain a monthly distribution policy.

Chris Kresic, who currently manages both Mortgage Fund and Short-Term Bond Fund, will continue as lead manager on the newly-merged fund.