TORONTO, Aug. 12, 2021 /CNW/ – Scotia Global Asset Management (Scotia GAM) today announced proposed changes to select ScotiaFunds to streamline its lineup, create efficiencies and deliver incremental costs savings to clients. Special meetings of select ScotiaFunds (each, a Special Meeting), will be held virtually on or about October 28, 2021, at which time applicable unitholders will be asked to consider and vote upon certain proposed changes, as detailed below.
Subject to obtaining unitholder approvals at the applicable Special Meetings, and subject to the receipt of all necessary regulatory approvals, it is anticipated that the following changes will be made effective on or about November 8, 2021:
- Proposed Merger – Scotia CanAm Index Fund (the Terminating Fund) is proposed to be merged (the Merger) into Scotia U.S. Equity Index Fund (the Continuing Fund). In connection with the implementation of the Merger, if approved, the fixed administration fee of the Continuing Fund (Series A, F and D units) will be reduced from 0.17% to 0.16%.
The Independent Review Committee has reviewed the proposed Merger and has provided a favourable recommendation, having determined that the Merger, if implemented, would achieve a fair and reasonable result for the Terminating Fund and the Continuing Fund.
If the Merger is approved, upon closing, units of the Terminating Fund will be exchanged for units of the Continuing Fund having a net asset value that is equal to the net asset value of the units of the Terminating Fund. Following such exchange, unitholders of the Terminating Fund will become unitholders of the Continuing Fund.
- Proposed Investment Objective Changes – The investment objectives of Scotia Nasdaq Index Fund and Scotia International Equity Index Fund are proposed to change to permit the funds to track the performance of their respective reference index through direct investments through full replication or optimization, instead of index tracking futures contracts.
In connection with the investment objective changes, if approved, the fixed administration fee of the Scotia Nasdaq Index Fund will be reduced from 0.23% to 0.22%, and the fixed administration fee of the Scotia International Equity Index Fund (Series A, F and D units) will be reduced from 0.32% to 0.24%. In addition, in respect of the Scotia International Equity Index Fund, it is anticipated that the current reference index of the fund will change to the Solactive GBS Developed Markets ex North America Large & Mid Cap CAD Index.
Each of the investment objective and Merger changes will be subject to unitholder approval of the applicable funds at virtual Special Meetings to be held on or about October 28, 2021. Scotia GAM has fixed the close of business on September 9, 2021 as the record date for the purpose of determining which unitholders are entitled to receive notice of, and to vote at, the Special Meetings.
A Notice-and-Access document, which outlines the procedures for accessing the management information circular containing full details of the proposals will be mailed on or about September 27, 2021, to unitholders of record on the record date. The management information circular will also be made available following the record date at www.sedar.com.
Scotia T-Bill Funds
The following two Scotia T-Bill Funds will be terminated effective on or about December 3, 2021:
- Scotia T-Bill Fund (Series A)
- Scotia Premium T-Bill Fund (Series A)
New and additional purchases will not be available for the Scotia T-Bill Fund effective at the close of business on August 26, 2021, including purchases made through Pre-Authorized Contribution Plans. Scotia Premium T-Bill Fund is already unavailable for purchase.
Unitholders of the Scotia T-Bill Funds can redeem or switch their units at any time up until the date of the termination. On the termination date, any remaining units will be redeemed for cash. A notice will be mailed to all affected unitholders by late September.
Unitholders of the Scotia T-Bill Funds are encouraged to contact their investment professional to discuss the termination and their investment options. Unitholders may redeem or switch their holdings of the funds for settlement on, or prior to, the close of business on the termination date in accordance with the Funds’ simplified prospectus.
For further information on these and other ScotiaFunds, please visit scotiafunds.com.
Commissions, trailing commissions, management fees and expenses all may be associated with
investments in the funds. Please read the prospectus before investing. Investments in the funds
are not guaranteed; their values change frequently, and past performance may not be repeated.
About Scotia Global Asset Management
Scotia Global Asset Management is a business name used by 1832 Asset Management L.P., a limited partnership, the general partner of which is wholly owned by Scotiabank. Scotia Global Asset Management offers a range of wealth management solutions, including mutual funds, ETFs, and investment solutions for private clients, institutional clients and managed asset programs.
Scotiabank is a leading bank in the Americas. Guided by our purpose: «for every future», we help our customers, their families and their communities achieve success through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With a team of approximately 90,000 employees and assets of approximately $1.1 trillion (as at April 30, 2021), Scotiabank trades on the Toronto Stock Exchange (TSX: BNS) and New York Stock Exchange (NYSE: BNS). For more information, please visit http://www.scotiabank.com and follow us on Twitter @ScotiabankViews.