Global Infrastructure Dividend Fund (TSX:GIF.UN) intends to merge with Middlefield Global Infrastructure Fund (a mutual fund) on Aug. 15, Calgary-based Middlefield Group said Wednesday.

The objective of Middlefield Global Infrastructure Fund is to maximize long-term total return by investing primarily in equity and fixed income securities of global issuers with a strategy that focuses on issuers offering exposure to the infrastructure sector, Middlefield says.

The merger will be effected on a “tax-deferred rollover” basis, says Middefield, at an exchange ratio calculated as the net asset value (NAV) per GIF unit divided by the NAV per series A unit of Middlefield Global Infrastructure Fund, determined as at the close of trading on the Toronto Stock Exchange (TSX) the business day immediately prior to the effective date of the merger.

The management fee payable by GIF unitholders may increase upon completion of the merger to 2.0% per year of the NAV of the Series A units of Middlefield Global Infrastructure Fund.

Holders of GIF units who do not wish to participate in the merger will have the opportunity to redeem their units on July 30. Redemption proceeds will be payable on Aug. 15.