MONTREAL, March 1, 2017 /CNW Telbec/ - National Bank Investments Inc. ("NBI") announces the convening of special meetings of National Bank Mutual Funds securityholders to obtain their approval on fund merger projects. These changes aim to simplify its mutual fund lineup, while also delivering benefits for both investors and the financial advisors offering NBI funds.
"We believe these changes will help advisors find appropriate products more easily through a more efficient and simplified fund offering. These fund mergers are in keeping with NBI's client-centric approach as we are committed to providing investors with access to innovative investment solutions at competitive pricing", said Jonathan Durocher, President and Chief Executive Officer of National Bank Investments.
"NBI is committed to maintaining a broad lineup of funds, helping investors take advantage of any market environments across a variety of different portfolio managers that fit our open architecture", said Annamaria Testani, Vice-President, National Sales for National Bank Investments.
Proposed mergers
As required by securities regulations, NBI presented the conflict of interest matters inherent to the proposed mergers to the funds' Independent Review Committee ("IRC"). In the context of its mandate and of National Instrument 81-107 Independent Review Committee for Investment Funds, the IRC issued a favourable recommendation with respect to the policies proposed by NBI to address these conflicts of interest.
Subject to regulatory approval and securityholder approval at the special meetings, NBI intends to merge the terminating funds into the corresponding continuing funds as indicated in the table below, on or about May 12 and May 19, 2017.
Fund mergers on or about May 12, 2017
| Proposed Fund Mergers |
|
| Terminating Funds |
Continuing Funds |
| National Bank Health Sciences Fund |
National Bank Global Equity Fund |
| National Bank Energy Fund |
National Bank Resource Fund |
| National Bank Precious Metals Fund |
|
| NBI U.S. Growth & Income Private Portfolio |
NBI U.S. High Conviction Equity Private Portfolio |
| NBI Currency-Hedged U.S. High Conviction Equity Private Portfolio |
|
| NBI Currency-Hedged International High Conviction Equity Private Portfolio |
NBI International High Conviction Equity Private Portfolio |
Fund mergers on or about May 19, 2017
| Proposed Fund Mergers |
|
| Terminating Funds |
Continuing Funds |
| National Bank Long Term Bond Fund |
National Bank Bond Fund |
| National Bank U.S. $ Global Tactical Bond Fund |
National Bank Global Tactical Bond Fund |
| National Bank Monthly Secure Income Fund |
NBI Secure Portfolio* |
| National Bank Monthly Conservative Income Fund |
NBI Conservative Portfolio* |
| National Bank Monthly Moderate Income Fund |
NBI Moderate Portfolio* |
| National Bank Monthly Balanced Income Fund |
NBI Balanced Portfolio* |
| National Bank Monthly Growth Income Fund |
NBI Growth Portfolio* |
| National Bank Asset Allocation Fund |
|
| National Bank Monthly Equity Income Fund |
NBI Equity Portfolio* |
| National Bank Dividend Income Fund Inc. |
National Bank Dividend Fund |
| National Bank High Dividend Fund |
National Bank Canadian Equity Fund |
| National Bank AltaFund Investment Corp. |
National Bank Canadian Equity Growth Fund |
| Westwood Global Dividend Fund |
National Bank Global Equity Fund |
| Westwood Global Equity Fund |
|
| National Bank European Equity Fund |
|
| National Bank Asia Pacific Fund |
|
| National Bank Japanese Equity Fund |
|
| National Bank Global Small Cap Fund |
|
| National Bank Science and Technology Fund |
|
* Funds to be created on or about May 12, 2017
The terminating funds listed above will be closed to new subscriptions as of 11:59 p.m. on March 1, 2017, with the exception of pre-established systematic investment and distribution reinvestment plans, and purchases within the National Bank Managed Portfolios program.
Creation of new series
NBI also announces the creation of H and FH series for the NBI U.S. High Conviction Equity Private Portfolio and the NBI International High Conviction Equity Private Portfolio.
Furthermore, NBI intends to create new series for certain continuing funds on or about May 12, 2017. These series will be reserved to investors of the terminating funds and will be closed to new subscriptions, with the exception of pre-established systematic investment and distribution reinvestment plans.
Termination of funds and series
NBI announces the termination of the following funds and series on or about May 11, 2017 as well as closing these funds and series to new subscriptions as of 11:59 p.m. on March 1, 2017, with the exception of pre-established systematic investment and distribution reinvestment plans.
- Advisor and F Series of National Bank Long Term Bond Fund and National Bank Asset Allocation Fund
- Advisor Series of National Bank AltaFund Investment Corp.
- F5 and T5 Series of Westwood Global Dividend Fund
- Institutional and M Series of National Bank Money Market Fund
- Investor and R Series of National Bank U.S. $ Global Tactical Bond Fund
- National Bank Short Term Yield Class
- National Bank Treasury Management Fund*
- National Bank Corporate Cash Management Fund*
- National Bank U.S. Money Market Fund
* Already closed to new purchases since October 31, 2014
Should securityholders vote against the fund mergers, National Bank U.S. $ Global Tactical Bond Fund, National Bank Monthly Secure Income Fund, National Bank Monthly Conservative Income Fund, National Bank Monthly Moderate Income Fund, National Bank Monthly Balanced Income Fund and National Bank Monthly Growth Income Fund will remain permanently closed to new subscriptions; and National Bank Monthly Equity Income Fund, Westwood Global Equity Fund, National Bank Japanese Equity Fund, National Bank Global Small Cap Fund, NBI U.S. Growth & Income Private Portfolio, NBI Currency-Hedged U.S. High Conviction Equity Private Portfolio and NBI Currency-Hedged International High Conviction Equity Private Portfolio will be terminated on or about June 12, 2017.
These changes will be reflected in the upcoming amendment to the simplified prospectus for the National Bank Mutual Funds, which will be available at www.sedar.com and www.nbc.ca.
Redemption of units of National Bank High Dividend Fund
Lastly, NBI, as manager for National Bank High Dividend Fund (the "Fund"), announces today its intent to redeem the units held by Intact Insurance Company ("Intact"). Intact Investment Management Inc., the portfolio manager of the Fund, and Intact are subsidiaries of Intact Financial Corporation. The amount payable to Intact will be settled by a transfer of its proportional share of securities held in the Fund. Intact's participation, as of February 27, 2017, was approximately $367 million representing nearly 79% of the total assets of the Fund. The redemption will occur on or about March 21, 2017.
About National Bank Mutual Funds
National Bank Mutual Funds (the "Funds") are offered by National Bank Investments Inc., a wholly owned subsidiary of National Bank of Canada. Commissions, trailing commissions, management fees and expenses all may be associated with investments in the Funds. Please read the prospectus of the Funds before investing. The Funds' securities are not insured by the Canada Deposit Insurance Corporation or by any other government deposit insurer. The Funds are not guaranteed, their values change frequently and past performance may not be repeated.
About National Bank Investments Inc.
National Bank Investments ("NBI") is an investment fund management firm committed to manufacturing and distributing mutual funds, investment solutions and services designed to help Canadian investors pursue their financial goals. As at December 31, 2016, the value of assets under management in NBI products amounted to $32.2 billion.
Guided by a 100% open architecture structure, NBI is dedicated to providing diverse solutions to meet the evolving needs of its clients. NBI consistently strives to be recognized as a key partner by combining innovation and excellence. NBI's role is not limited to administrative aspects of management; NBI Advisory Services and its registered representatives form a team of specialists who provide information and advice to help advisors build portfolios adapted to their clients' financial needs.
About National Bank of Canada
With $234 billion in assets as at January 31, 2017, National Bank of Canada, together with its subsidiaries, forms one of Canada's leading integrated financial groups. The Bank has more than 21,000 employees and is widely recognized as a top employer. The Bank's securities are listed on the Toronto Stock Exchange (TSX: NA). Follow the Bank's activities at nbc.ca or via social media such as Facebook, LinkedIn and Twitter.
SOURCE National Bank of Canada
Marie-Pierre Jodoin, Senior Manager, Public Affairs, National Bank of Canada, Tel.: 514-394-4209
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