Investors Group today announced several proposed changes to its fund lineup The proposals include fund mergers, an investment objective change and the creation of a new “Premium Series.”

Additionally, Series Ti of Investors Capital Yield Class will be closed to all investments on Feb. 5, and terminated on May 15.

Proposed fund mergers

The proposed mergers involving Investors Capital Yield Class and Investors Short Term Capital Yield Class and Investors Premium Money Market Fund are expected to take effect at the close of business on May 15, subject to any necessary securityholder and regulatory approvals:

  • Investors Capital Yield Class (all Series other than Series I and Series Ti) to merge into Investors Canadian Bond Fund;
  • Investors Capital Yield Class – Series I to merge into iProfile Fixed Income Pool – Series I;
  • Investors Short Term Capital Yield Class to merge into Investors Mortgage & Short Term Income Fund; and
  • Investors Premium Money Market Fund to merge into Investors Canadian Money Market Fund – Premium Series.

Investor Groups says the mergers will result in the potential for improved long-term performance in larger continuing funds.

Proposed investment objective change

Securityholders of Investors Managed Yield Class will be asked to approve a change of the fund’s investment objective that will change it from a specialty fund to a money market fund. If approved, the fund’s name will change to Investors Canadian Money Market Class. The renamed fund will aim to provide a stable current return through exposure to Canadian money market securities by investing in other money market mutual fund(s) and/or directly in money market securities. Initially, it is expected that the fund will invest in units of Investors Canadian Money Market Fund. The proposed changes will become effective on May 1, pending required approvals.

Securityholder meetings

Securityholders of Investors Managed Yield Class will be asked to approve the objective change of their fund, and securityholders of the merging funds/series, other than Investors Premium Money Market Fund, will be asked to approve the mergers, at special meetings to be held on April 20, in Winnipeg.

Money market funds merger

The Investors Group Funds Independent Review Committee (IRC) has approved the merger of Investors Premium Money Market Fund into Investors Canadian Money Market Fund.

To facilitate this merger, a new “Premium Series” of Investors Canadian Money Market Fund is being created with the same fee structure as that offered by Investors Premium Money Market Fund into which Investors Premium Money Market Fund will be merged. This merger will be effective at close of business May 15, at which time the Premium Series of Investors Canadian Money Market Fund will be available for sale.