Winnipeg-based Investors Group Financial Services Inc. (IGFS) is proposing revisions to the investment objectives of several mutual funds, as well as multiple fund mergers, the company announced Monday.
“These proposed changes streamline our mutual fund offering and introduce portfolio efficiencies,” says Jon Kilfoyle, senior vice president, IG Investments, in a statement. “The proposed changes also provide broader investment management diversification, and better position our investments for improved long-term performance, helping our clients reach their financial goals.”
The company is proposing to change investment objectives and/or fundamental investment strategies of the five equity mutual funds to provide broader investment management diversification opportunities. The proposed changes would either expand a fund’s geographic focus or expand its exposure to larger cap companies.
In addition, five funds would adopt a fund-of-fund investment approach. This will provide them with exposure to markets through investments in a corresponding unit trust fund with similar objectives, allowing them to combine their assets into a larger single pool to facilitate investment management decisions and provide the potential for lower trading costs.
Overall, these changes of objectives are expected to provide the potential for improved long-term performance, IGFS says in a news release.
The company is also proposing several fund mergers. These mergers are expected to provide investors with a streamlined and simplified product lineup, broaden investment management diversification opportunities and in some cases, may result in lower costs to clients.
Uniholders will be asked to approve the mergers or objective changes involving their funds at meetings scheduled on Dec. 4 at Investors Group’s head office in Winnipeg.
The changes would take effect in February 2019, subject to all necessary approvals.
Full details of the proposed changes can be found in the company’s news release.