TORONTO, May 9, 2012 /CNW/ - Caldwell Mutual Funds announces today that
it will file an Amendment # 1 to its Simplified Prospectus and an
Amendment # 1 to its Annual Information Form in relation to Caldwell
Global Financial Services Fund, Caldwell Meisels Canada Fund, Caldwell
High Income Equity Fund and Caldwell Balanced Fund (collectively, the
"Funds"), an amended and restated Fund Facts document for Caldwell High
Income Equity Fund and an amended and restated Fund Facts document for
Caldwell Balanced Fund (collectively, the "Amendment").
Reasons for the Amendment
The reasons for the Amendment are:
-
to announce a proposal to merge (a) Caldwell Global Financial Services
Fund into Caldwell Balanced Fund and (b) Caldwell Meisels Canada Fund
into Caldwell High Income Equity Fund (collectively, the "Mergers");
-
to announce a proposal to amend the fee structure of Caldwell High
Income Equity Fund (the "Fee Change");
-
to announce a proposal to amend the fundamental investment objective of
Caldwell Balanced Fund (the "Investment Objective Change"); and
-
to disclose that Caldwell Investment Management Ltd. ("Caldwell") is
proposing to call special meetings of unitholders of the Funds to
obtain unitholder approval in respect of the Mergers, the Fee Change
and the Investment Objective Change.
A Notice of Meeting and meeting materials will be sent to unitholders of
the Funds in the near future.
The Mergers
The Mergers are subject to unitholder and regulatory approval.
Unitholders of each of Caldwell Global Financial Services Fund and
Caldwell Meisels Canada Fund will vote on the proposed Mergers at
special unitholder meetings to be held in Toronto, Ontario on June 12,
2012. Caldwell intends to proceed to effect the Merger of Caldwell
Meisels Canada Fund into Caldwell High Income Equity Fund if unitholder
approval of the Fee Change in respect of Caldwell High Income Equity
Fund is obtained. Caldwell is seeking regulatory approval of the
Mergers by way of an application to the Canadian Securities
Administrators. If unitholder and regulatory approvals are obtained,
the Mergers will take effect on or about June 15, 2012. During the
period starting on the date of the Amendment and ending on the
effective date of the Mergers, there will be no issuances of units of
Caldwell Global Financial Services Fund and Caldwell Meisels Canada
Fund.
The Fee Change
The Fee Change is subject to unitholder approval. Unitholders of
Caldwell High Income Equity Fund will vote on the proposed Fee Change
at a special unitholder meeting to be held in Toronto, Ontario on June
12, 2012. If unitholders of Caldwell High Income Equity Fund approve
the Fee Change, the management fee relating to units of the Fund will
increase to 2.0% per annum from 1.5% per annum effective June 15,
2012. Notwithstanding this change to a portion of the overall
management expense ratio ("MER") of Caldwell High Income Equity Fund,
Caldwell commits to absorb costs for this Fund sufficient to not
increase the MER of the Fund in the year ending December 31, 2012 above
the Fund's MER for the year ended December 31, 2011.
The Investment Objective Change
The Investment Objective Change is subject to unitholder approval.
Unitholders of Caldwell Balanced Fund will vote on the proposed
Investment Objective Change at a special unitholder meeting to be held
in Toronto, Ontario on June 12, 2012. If unitholders of Caldwell
Balanced Fund approve the proposed Investment Objective Change, the
fundamental investment objective of Caldwell Balanced Fund will be,
effective June 15, 2012, as follows: "To provide consistent capital
appreciation through a balanced portfolio while emphasizing the
preservation of unitholder value. The Fund invests in a balance of
income generating securities and equities both in Canada and
internationally."
The Caldwell Mutual Funds offer a broad range of investment management
products and services and can be found on the web at www.caldwellsecurities.com.
SOURCE Caldwell Mutual Funds
