Winnipeg-based Investors Group Tuesday announced intended changes to the investment objectives of Investors Capital Yield Class and Investors Short Term Capital Yield Class.
The proposed changes to the investment objectives of the classes will remove reference to the use of certain types of forward sale transactions in response to amendments to the Income Tax Act (Canada), which were introduced by the federal government in 2013. The amendments to the Tax Act eliminated the tax-related benefits associated with these transactions. The investment strategies of the classes will also be changed to reflect the revised investment objectives.
Investors Group has applied for an exemption from the requirement to obtain shareholder approval to change the investment objectives of the classes.
The changes are expected to be effective on or about September 23.
Separately, Investors Group announced that the risk rating associated with Investors Canadian Balanced Fund has been increased. This change will be reflected in an updated simplified prospectus, which is expected to be released on June 30.
Investors Group has a risk rating methodology using the guidelines established by the Investment Funds Institute of Canada, which assesses risk primarily based upon the variability of returns for a mutual fund. As a result, Investors Group has determined it is appropriate to change the risk rating for the fund from “Low to Medium” to “Medium”. No material changes have been made to the investment objectives, strategies or management of this mutual fund.