Front Street Mutual Funds Limited

Front Street Mutual Funds Limited

June 24, 2014 17:29 ET

Front Street Value Class Notice of Adjourned Meeting and Filing of Amended and Restated Management Information Circular

TORONTO, ONTARIO--(Marketwired - June 24, 2014) -


Front Street Mutual Fund Limited ("FSMFL") and its manager, Front Street Capital 2004 (the "Manager"), announced today that it has filed an amended and restated information circular dated June 23, 2014 (the "Amended Circular") with respect to the special meeting of the holders of Front Street Value Class (the "Fund") to be held June 24, 2014 and adjourned to July 16, 2014 (the "Meeting"). The Amended Circular shall replace and supersede the information circular dated June 2, 2014 (the "Circular") in respect of the Meeting. The Circular has been amended so as to include additional information with respect to the changes to the Fund's investment strategies and risk rating, and the elimination of the performance fees payable to the Manager with respect to the Fund that will result if the change of investment objective is approved and implemented.

As previously announced, at the Meeting, the holders of the Fund will be asked to consider a change to the fundamental investment objectives of the Fund to the following:

"The Fund's investment objective is to provide Shareholders with long-term capital growth and the opportunity for income through the selection, management and strategic investing in long and short positions in equity, debt and derivative securities. The Fund will invest primarily in U.S. equities and may focus its assets in specific industry sectors and asset classes based on analysis of business cycles, industry sectors and market outlook. The Fund may also invest in non-U.S. securities, including foreign common stock of issuers of any capitalization range and American Depositary Receipts ("ADRs") that provide investment exposure to global equity markets.

Front Street Investment Management Inc., the Fund's investment advisor, may also consider non-investment factors such as cash flow and liquidity requirements, hold periods and restrictions, risk factors, stop-loss containment and tax-efficient distributions in making security selections for the portfolio."

The current investment objectives of the Fund are as follows:

"The investment objective of the Fund is to provide Shareholders with consistent long term capital appreciation. The Fund will invest in mispriced Canadian and global equity securities by employing a deep value, contrarian approach, as explained under "Investment Strategies" below.

The Fund will invest in small, medium and large-cap companies and may have exposure to all sectors of the economy.

The fundamental investment objective of the Fund cannot be changed without the approval of its Shareholders."

The Manager believes this change in investment objective is desirable as it provides shareholders of the Fund with the potential for long-term capital appreciation by way of exposure to U.S. and global equities and income securities. If the change in investment objectives is approved, the name of the Fund will change to "Front Street U.S. Equity Class" and the investment strategies will be amended to reflect the fact that the Fund will no longer follow a value-investing strategy and will primarily focus its investments in U.S. equities. In addition, performance fees payable to the Manager will be eliminated.

As a result of the proposed change in investment objective, the risk rating of the Fund will change from "low-to-medium" to "high". The Circular had incorrectly described the risk rating of the Fund as "remaining high". Other than as described above, the Amended Circular remains unchanged from the Circular which was previously mailed to shareholders. A copy of the Amended Circular is set out below and available for viewing under the Fund's profile on SEDAR at

In order to allow shareholders to fully consider this new information and to increase voter participation, which has been extremely low to date, the Manager has adjourned the Meeting to July 16, 2014. Proxies will now be accepted up until 10:00 a.m. (Toronto time) on July 14, 2014.

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