Northwest & Ethical Investments LP (NEI) is changing the distribution policy for certain funds in its mutual fund line up in order to provide investors with a consistent income distribution experience across its product lineup, the Toronto-based investment manager announced Thursday.
NEI says it will apply a “monthly-fixed” policy to NEI Select Income Portfolio, NEI Select Growth & Income Portfolio, NEI Select Growth & Income RS Portfolio and NEI Select Maximum Growth RS Portfolio.
In addition, updates were made to implement a fixed percentage of net asset value distribution policy methodology that will reset annually and is more in line with industry practice, says NEI in a news release..
The a change in distribution policy “has no impact on the performance of a fund Portfolio,” NEI says.
Investors are encouraged to discuss the potential tax consequences of this distribution policy change with their tax advisors.