TORONTO, ONTARIO--(Marketwired - March 15, 2017) -
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LOGiQ Asset Management Ltd. and Aston Hill Corporate Funds Inc. announced today that special meetings of (i) the holders of each series of shares (collectively, the "Shareholders") of Aston Hill High Income Class, Aston Hill Strategic Yield Class and Aston Hill Total Return Class, and (ii) the holders of each series of units (collectively, the "Unitholders") of Aston Hill Canadian Total Return Fund and Aston Hill U.S. Conservative Growth Fund, will be held on May 1, 2017, to consider the following proposed mergers:
||Aston Hill High Income Class
Aston Hill Strategic Yield Class
Aston Hill Total Return Class
||Aston Hill Strategic Yield Fund
||Aston Hill Canadian Total Return Fund
Aston Hill U.S. Conservative Growth Fund
||Aston Hill Total Return Fund
Shareholders and Unitholders will, on the effective date of the applicable Merger, receive units of such series of the applicable Continuing Fund equivalent to the series of shares or units held by the Shareholder or Unitholder in a Terminating Fund. The number of units of a series of a Continuing Fund received will be determined by multiplying the number of shares or units of the applicable series of a Terminating Fund held by the Shareholder or Unitholder at the close of business prior to the effective date of the applicable Merger by an exchange ratio (which will be equal to the net asset value per series of shares or units of such Terminating Fund on the business day prior to the effective date of such Merger, divided by the net asset value per the equivalent series of units of the applicable Continuing Fund, on such date).
Effective January 1, 2017, the Federal Government eliminated the tax-deferred switching option for mutual fund corporations, materially reducing the benefit offered by the Merger 1 Terminating Funds and negatively impacting the potential for each of the Merger 1 Terminating Funds to attract enough investors to achieve the economies of scale necessary to keep fund expenses as low as possible. The manager of the Merger 1 Terminating Funds, LOGiQ Asset Management Ltd., and Aston Hill Corporate Funds Inc. believe that Merger 1 will be beneficial to Shareholders as a result of the increased economies of scale resulting from the consolidation of sales, marketing and management activities that are expected to reduce fund expenses. Shareholders will not be responsible for the costs associated with the Merger.
The manager of the Merger 2 Terminating Funds, LOGiQ Asset Management Ltd., believes that Merger 2 will be beneficial to Unitholders because (i) increased economies of scale resulting from the consolidation of sales, marketing and management activities are expected to reduce fund expenses; (ii) Unitholders will not be responsible for the costs associated with the Merger; and (iii) the Merger 2 Terminating Funds and the Merger 2 Continuing Fund have similar investment objectives and the same portfolio manager.
Each Merger is subject to receipt of all required regulatory approvals and to the approval of the applicable Shareholders and Unitholders at the special meetings. Assuming all such approvals are obtained, the Mergers are expected to be completed on or about May 10, 2017.
Shareholders and Unitholders of record on March 28, 2017 will be entitled to receive notice of, and to vote, at the applicable special meeting. Information circulars containing details of the Mergers will be mailed to such Shareholders and Unitholders on or about April 10, 2017. The information circulars will also be available at www.sedar.com.