Fund changes at NEI Investments

Toronto-based NEI Investments, jointly owned by Northwest & Ethical Investments LP and Desjardins Group, has merged and altered the investment objectives of several of its mutual funds. NEI Ethical Growth Fund is slated to merge with NEI Ethical Canadian Dividend Fund on May 24; Calgary-based subadvisor QV Investors Inc. will manage the merged fund. NEI Northwest Specialty Growth Fund Inc. is scheduled to merge with the new NEI Corporate Class Fund. The new fund’s investment objective is to have an above-market level of yield using a covered-call options strategy, aiming for an annualized yield of 4%-5% net of fees. Montreal-based Placements Montrusco Bolton Inc. will manage this fund. As well, unitholders have voted to change the investment objectives of four continuing Canadian funds to reduce their content restrictions and rename the funds as of July: NEI Ethical Select Canadian Balanced Portfolio will be renamed NEI Ethical Select Balanced Portfolio; NEI Ethical Select Canadian Growth Portfolio will be renamed NEI Ethical Select Growth Portfolio; NEI Select Canadian Balanced Corporate Class Portfolio will be renamed NEI Select Balanced Corporate Class; and NEI Select Global Growth Corporate Class Portfolio will be renamed NEI Select Growth Corporate Class. In addition, NEI has changed the fund objectives for NEI Northwest EAFE Fund and NEI Northwest EAFE Corporate Class to an emerging-markets equities mandate and renamed these funds as NEI Northwest Emerging Markets Fund and NEI Northwest Emerging Markets Corporate Class, respectively. Boston-based Columbia Management Investment Advisers LLC has assumed management responsibilities for both funds; management fees have reduced to 2.15% (from 2.25%) for A-class units and 1.15% (from 2.25%) for F-class units.

Compiled by Clare O’Hara (cohara@investmentexecutive.com).