TORONTO, ONTARIO--(Marketwired - Dec. 30, 2013) - Front Street Capital 2004, as manager of Front Street Mutual Funds Limited ("FSMFL") has decided not to proceed with the mergers of Front Street Tactical Equity Class and Front Street Value Class into Front Street Growth and Income Class and Front Street Resource Growth and Income Class, respectively, each a mutual fund class within FSMFL.
Although the merger had been proposed in April, 2013 and approved by shareholders on May 28, 2013, due to the length of time required to obtain regulatory approval, the Manager has made the decision to withdraw the merger application of the funds, as market conditions have changed since shareholder approval was obtained, and extending the application would have resulted in additional costs. Front Street Capital 2004's Chief Investment Officer, Frank Mersch, believes that continuing to operate Front Street Value Class and Front Street Tactical Equity Class in accordance with each fund's investment objectives will provide investors with a wider range of investment strategies within the FSMFL corporate class lineup. In light of these factors, Front Street Capital 2004 has chosen not to pursue the merger at this point and will continue to manage the funds as usual.
Because of the corporate class structure of FSMFL, investors in mutual fund classes of FSMFL are still able to switch on a tax-deferred basis between FSMFL fund classes, including Front Street Resource Growth and Income Class (into which the Front Street Value Class was to be merged) and Front Street Growth and Income Class (into which the Front Street Tactical Equity Class was to be merged).