MONTREAL, Nov. 23, 2012 /CNW Telbec/ - As manager of FÉRIQUE (Fonds d'épargne et de retraite des ingénieurs du Québec) Funds, Gestion FÉRIQUE today announced proposed changes to some of its funds (FÉRIQUE BOND, BALANCED, DIVIDEND, EQUITY, AMERICAN, EUROPEAN, ASIAN and WORLD).
Unitholder approval for the relevant funds will be sought at special meetings to be held on December 5, 2012. Full details of the proposed changes are set out in notices of meetings and information circulars that were sent to unitholders of record as at the close of business on October 30, 2012. These documents are also available on SEDAR (www.sedar.com).
Proposed changes
Contrary to most Canadian mutual funds, the management expense ratio (MER) of FÉRIQUE Funds may vary from one year to the next. Such variations occur because Gestion FÉRIQUE, the Funds' manager, is a non-profit organization that adjusts its annual management fees to a level that, based on market fluctuations, permits it to cover its expenses and maintain a reasonable operational reserve without seeking to make a profit.
On August 31, 2006, the Funds' unitholders approved a resolution to set a cap on each Funds' MER. The establishment of such caps is an initiative of Gestion FÉRIQUE, who seeks to protect the interests of the Funds' unitholders. These MER caps need to be increased in light of certain factors related to the tax harmonization, the cost increase of Fund management and distribution, as well as the enhancement of the product and services offering.
Subject to unitholders approval, the total MER limits of the above-mentioned Funds will be changed as follows:
| PROPOSED MER LIMITS FOR FÉRIQUE FUNDS | ||||||||
| BOND | BALANCED | DIVIDEND | EQUITY | AMÉRICAN | EUROPEAN | ASIAN | WORLD | |
| Current Fund MERs** | 0.75% | 1.00% | 1.00% | 1.00% | 1.10% | 1.20% | 1.20% | 1.20% |
| Current MER limits*** | 0.75% | 1.00% | 1.25% | 1.00% | 1.20% | 1.25% | 1.25% | 1.25% |
| Proposed MER limits | 1.00% | 1.50% | 1.50% | 1.50% | 1.65% | 1.75% | 1.75% | 1.75% |
** As of October 1, 2012
*** In effect since September 30, 2006
It should be stressed that the proposed changes do not seek to increase the MERs, but only to adjust the cap set forth for each Fund. Our MER history shows that when markets prove favourable, any surplus generated is used to lower the MERs. Even after the proposed increase is implemented, the MER caps would still rank among the lower quartile of comparable funds in Canada, meaning in the lowest 25% range in terms of price.
Once approved, the proposed changes should take effect on or about December 31, 2012.
About Gestion FÉRIQUE
Founded on January 1, 2000, Gestion FÉRIQUE (www.ferique.com) is the manager of FÉRIQUE Funds, launched in 1974 by the Ordre des ingénieurs du Québec. FÉRIQUE is the only not-for-profit mutual fund company in Canada whose sole purpose is to serve the interests of engineers, engineering graduates and their families. The firm offers 10 mutual funds diversified across all asset classes. Management of the Funds is entrusted to renowned investment firms, handpicked by Gestion FÉRIQUE based on their asset class expertise. FÉRIQUE Funds have nearly $1.6 billion in assets under management and close to 22,000 clients.
SOURCE: Gestion Férique Inc.
Manon Duhamel, Gestion FÉRIQUE, 514-840-9206 (Ext. 450), [email protected]
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