SOURCE: Dynamic Funds

Dynamic Funds

March 13, 2015 13:50 ET

Dynamic Funds Announces Upcoming Fund Mergers

TORONTO, ON--(Marketwired - March 13, 2015) - 1832 Asset Management L.P. (the "Manager"), as the manager of the Dynamic Funds, DynamicEdge Portfolios and Dynamic Managed Portfolios, today announced planned mergers of the Funds referred to below, subject to receipt of all necessary regulatory and securityholder approvals:

Terminating Fund      Continuing Fund
Dynamic Aurion Canadian Equity Class   to merge into   Dynamic Aurion Tactical Balanced Class
Dynamic Real Return Bond Fund   to merge into   Dynamic Advantage Bond Fund
DMP Canadian Dividend Class   to merge into   DMP Value Balanced Class
DMP Canadian Value Class   to merge into   DMP Value Balanced Class
DMP Power Canadian Growth Class   to merge into   DMP Value Balanced Class
DMP Global Value Class   to merge into   DMP Power Global Growth Class
DynamicEdge 2020 Class Portfolio   to merge into   DynamicEdge Conservative Class Portfolio
DynamicEdge 2020 Portfolio   to merge into   DynamicEdge Conservative Class Portfolio
DynamicEdge 2025 Class Portfolio   to merge into   DynamicEdge Balanced Class Portfolio
DynamicEdge 2025 Portfolio   to merge into   DynamicEdge Balanced Portfolio
DynamicEdge 2030 Class Portfolio   to merge into   DynamicEdge Balanced Growth Class Portfolio
DynamicEdge 2030 Portfolio   to merge into   DynamicEdge Balanced Growth Portfolio

The General Partner of the Manager has received approval from its Board of Directors to proceed with the mergers. In addition, the Independent Review Committee of the Funds concluded after considering such mergers that the mergers, if implemented, would achieve a fair and reasonable result for the Funds.

If approved by securityholders of the Terminating Funds and by regulators, the proposed mergers are expected to take effect after the close of business on or about June 19, 2015. All costs and expenses associated with the mergers will be borne by the Manager.

The Mergers
For each merger that is approved, the applicable Terminating Fund will transfer all of its assets to the applicable Continuing Fund in exchange for securities of the Continuing Fund on a series-by-series and dollar-for-dollar basis, and the Continuing Fund's securities will be distributed on a pro rata basis to the securityholders of the Terminating Fund. The Continuing Fund will absorb all the liabilities of the Terminating Fund. The Terminating Fund will then be wound up as soon as possible following the mergers.

Each merger will require the approval by a majority of the votes cast by securityholders of the applicable Terminating Fund at a special meeting of such securityholders, expected to be held jointly on or about June 2, 2015 (the "Special Meetings"). The record date for the purpose of determining which securitytholders are entitled to receive notice and vote at the Special Meetings will be the close of business on or about April 14, 2015. The information circular containing a complete description of the matters to be considered at the Special Meetings will be sent to securityholders shortly thereafter.

The mergers of Dynamic Real Return Bond Fund with Dynamic Advantage Bond Fund, DynamicEdge 2020 Portfolio with DynamicEdge Conservative Class Portfolio, DynamicEdge 2025 Portfolio with DynamicEdge Balanced Portfolio and DynamicEdge 2030 Portfolio with DynamicEdge Balanced Growth Portfolio will occur on a taxable basis. The mergers of Dynamic Aurion Canadian Equity Class with Dynamic Aurion Tactical Balanced Class, DMP Canadian Dividend Class with DMP Value Balanced Class, DMP Canadian Value Class with DMP Value Balanced Class, DMP Power Canadian Growth Class with DMP Value Balanced Class, DMP Global Value Class with DMP Power Global Growth Class, DynamicEdge 2020 Class Portfolio with DynamicEdge Conservative Class Portfolio, DynamicEdge 2025 Class Portfolio with DynamicEdge Balanced Class Portfolio and DynamicEdge 2030 Class Portfolio with DynamicEdge Balanced Growth Class Portfolio will occur on a tax-deferred basis.

Suspension of New Purchases
Effective as of the close of business on June 15, 2015, purchases of securities of a Terminating Fund will be suspended (except purchases under existing pre-authorized contribution plans). Following each merger, pre-authorized contribution plans and automatic withdrawal plans which have been established with respect to a Terminating Fund will be re-established with respect to the corresponding Continuing Fund unless otherwise informed by securityholders.

Rationale for the Mergers
The proposed mergers are the result of the Manager's ongoing review of its respective fund lineup and are believed to be in the best interests of the Terminating Funds. Securityholders are expected to benefit from the increased scale, improved diversification and operational efficiencies of the Continuing Funds.

About Dynamic Funds
Dynamic Funds is managed by 1832 Asset Management L.P., which offers a range of wealth management solutions, including mutual funds, investment solutions for private clients, institutional clients and managed asset programs. 1832 Asset Management L.P. is a limited partnership, the general partner of which is wholly owned by Scotiabank. ® Dynamic Funds is a registered trademark of its owner, used under license.

Caution regarding forward-looking statements
Certain portions of this news release may contain forward-looking statements about the Funds and the planned mergers. Forward-looking statements include statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates" and similar forward-looking expressions or negative versions thereof. In addition, any statement that may be made concerning future benefits resulting from the planned mergers is also a forward-looking statement. Forward-looking statements are inherently subject to, among other things, risks and uncertainties, some of which may be unforeseeable. Accordingly, assumptions concerning future economic and other factors may prove to be incorrect at a future date.

Forward-looking statements are not guarantees of future performance, and actual events could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limited to, failure to receive securityholder approval of the proposed mergers at the securityholder meetings or failure to receive all required regulatory approvals to implement the proposed mergers should they be approved by securityholders. We stress that the above mentioned list of important factors is not exhaustive.

We encourage you to consider these and other factors carefully before making any investment decisions and we urge you to avoid placing any undue reliance on forward-looking statements. Further, you should be aware of the fact that the Funds have no specific intention of updating any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. For a complete disclosure record for each of the Funds, please visit their profiles at www.sedar.com. Securityholders are encouraged to consult with their own tax advisors for advice with respect to the tax consequences of the proposed mergers having regard to their own particular circumstances.

Contact Information

  • For further information, please contact:

    Customer Relations Centre        
    1‐800‐268‐8186                
    www.dynamic.ca            

    Corporate Communications
    Devinder Lamsar
    416‐933‐1171