MONTREAL, Oct. 28, 2024 /CNW/ - Desjardins Investments Inc. ("DI"), as manager of the Desjardins Funds, announces changes to its mutual fund lineup. The changes, described in detail below, include the replacement of the portfolio sub-manager, and amendment to the investment strategies of the Desjardins Sustainable International Equity Fund (formerly known as Desjardins SocieTerra International Equity Fund). In addition, DI will modify the target distribution rate for T5-, R5- and S5-Class Units of Melodia Moderate Income Portfolio and the target distribution rate for T6-, R6- and S6-Class Units of Melodia Diversified Income Portfolio.
DI regularly reviews its mutual fund's offer to ensure they continue to meet the evolving investment needs of financial advisors and investors.
Changes to the Desjardins Sustainable International Equity Fund
DI announces the replacement the portfolio sub-manager, Addenda Capital Inc. ("Addenda"), by Ninety One North America, Inc. ("Ninety One"), who will be responsible for the management of the portfolio assets of Desjardins Sustainable International Equity Fund.
DI anticipates that the replacement of Addenda by Ninety One will become effective on or around December 3rd, 2024.
In addition, DI approved changes to the investment strategies of the Fund to better reflect the investment philosophy of Ninety One as the Sub-Portfolio Manager of the Fund. However, both the fundamental investment objective and the risk rating of the Fund remain unchanged.
The Fund's investment strategy will be modified to better reflect the new mandate. The main features of the strategy are as follows:
- A systematic screening process combined with fundamental research to seek to identify companies that, according to the sub-manager, represent long-term investment opportunities considering the company's quality, growth and valuation;
- A proprietary research framework that includes the assessment of material ESG (environmental, social and governance) issues and the assessment of the climate strategy to select companies that have the prerequisites for delivering long-term sustainable value;
- The sub-manager seeks to maintain a portfolio with a lower level of risk than the benchmark index.
Changes to the Melodia Moderate Income Portfolio and to the Melodia Diversified Income Portfolio
DI announces an increase in the target distribution rate for T5-, R5- and S5-Class Units of the Melodia Moderate Income Portfolio to 6% and an increase in the target distribution rate for T6-, R6- and S6-Class Units of the Melodia Diversified Income Portfolio to 7%. These Class Units entitle their holders to current monthly cash distributions of non-taxable capital distributions and/or net income, and any income or capital gain not previously distributed is also distributed in December. The increase in the target distribution rate will become effective on January 20th, 2025. The name of the units concerned will be changed on that date to reflect the new target distribution rate.
The above-mentioned changes will be made subject to approval from the regulatory authorities. DI reserves the right to suspend or defer the implementation of said changes to a later date.
About Ninety One North America, Inc.
Founded in South Africa in 1991, Ninety One is a global portfolio manager with emerging market roots. Their heritage and approach bring a different perspective to active and sustainable investing. Their investment expertise spans equity, fixed income, multi-asset and alternative asset classes across global, emerging and frontier markets.
About Desjardins Investments Inc.
Desjardins Investments Inc. (DI), manager of the Desjardins Funds and Desjardins Exchange-Traded Funds, is one of Canada's largest investment funds, with $ 43,5 billion in assets under management as at June 30, 2024. DI offers a broad range of investment funds and exchange-traded funds (ETFs) to Canadian investors. In addition, DI is one of the most committed actors in promoting and advancing responsible investment in Canada.
About Desjardins Group
Desjardins Group is the largest cooperative financial group in North America and the sixth largest in the world, with assets of $444.3 billion as at June 30, 2024. It has been named one of Canada's Best Employers by Forbes magazine and by Mediacorp. To meet the diverse needs of its members and clients, Desjardins offers a full range of products and services to individuals and businesses through its extensive distribution network, its online platforms, and its subsidiaries across Canada. Ranked among the world's strongest banks according to The Banker magazine, Desjardins has one of the highest capital ratios and one of the highest credit ratings in the industry.
Desjardins Funds are not guaranteed, their value fluctuates frequently and their past performance is not indicative of their future returns. Commissions, trailing commissions, management fees and expenses may all be associated with mutual fund investments. Please read the prospectus before investing. Desjardins Funds are offered by registered dealers.
Desjardins®, all trademarks containing the word Desjardins, as well as related logos are trademarks of the Fédération des caisses Desjardins du Québec, used under licence.
SOURCE Desjardins Group
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