Winnipeg-based Investors Group Inc. announced several changes to its fund offering on Thursday, including proposed fund mergers and the immediate termination of one fund series.
Series Tjnl of Investors Short Term Capital Yield Class has been terminated as of June 17, the company says.
In addition, the company has proposed an investment objective change involving IG Mackenzie Canadian Equity Growth Class; fund mergers involving IG AGF Canadian Growth Fund/Class; and a change of volatility ranking for two funds/classes.
Proposed investment objective change
Unitholders of IG Mackenzie Canadian Equity Growth Class will be asked to approve a change of investment objective for the fund.
The fund will continue to seek to provide long-term capital growth, says Investors Group, but will do so primarily by exposure to the common shares of Canadian-based corporations of any size through investment in other mutual funds or directly in equity securities. Initially, the corporate class fund intends to invest up to 100% of its net assets in IG Mackenzie Canadian Equity Growth Fund.
This change is expected to result in greater efficiencies in the management of the fund’s portfolio. The proposed investment objective will become effective on or about Sept. 4, pending required approvals.
Proposed fund mergers
Investors Group is proposing to merge IG AGF Canadian Growth Fund into IG Mackenzie Canadian Equity Growth Fund, and IG AGF Canadian Growth Class into IG Mackenzie Canadian Equity Growth Class.
The proposed mergers are expected to take effect at close of business on Sept. 11, subject to any necessary unitholder and regulatory approvals:
The mergers are expected to provide investors the potential for more efficient investment management due to a larger asset base and generally more comprehensive investment mandates.
Both of these mergers have been reviewed by the funds’ independent review committee, which has determined that the mergers achieve a fair and reasonable result for all of the funds involved.
Unitholders will be asked to approve their respective mergers and the investment objective change of their fund at special meetings scheduled to be held on Aug. 31 in Winnipeg.
Change in volatility
Investors Group is decreasing the risk rating associated with IG AGF U.S. Growth Fund/Class and IG Putnam U.S. Growth Fund/Class. During a recent periodic review, Investors Group determined to change the risk rating for these funds to “medium” from “medium to high.”
No material changes have been made to the investment objectives, strategies or management of these funds.
These changes in risk ratings are effective immediately.