Marquest Asset Management Inc.

Marquest Asset Management Inc.

June 09, 2014 20:59 ET

Marquest Asset Management Inc. Announces the Reorganization of the Marquest Group of Funds

TORONTO, ONTARIO--(Marketwired - June 9, 2014) -

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Marquest Asset Management Inc. ("Marquest") as the manager of the funds indicated below (each, a "Fund" and collectively, the "Funds") has announced a proposed reorganization of certain of the mutual funds making up the Marquest Group of Funds (the "Reorganization"). The Reorganization includes five proposed mergers (collectively, the "Mergers"), changes to the investment objectives of certain Funds (collectively, the "Changes to Investment Objectives") as well as corresponding changes in Fund names and the consolidation of various classes or series of units or shares offered by the Funds, as applicable (collectively, the "Consolidation").

Subject to applicable securityholder and regulatory approvals, the Mergers, Changes to Investment Objectives and Consolidation are expected to take effect on or about the close of business on July 9, 2014 or such later date as Marquest may determine. Each merging Fund will be wound-up as soon as reasonably possible following its Merger.

In the event that any of the Mergers, Changes to Investment Objectives and Consolidation do not receive the applicable approval of securityholders (or class thereof), Marquest may determine to terminate one or more of the merging Funds as well as to redeem all of the outstanding classes or series of units or shares comprising the Consolidation.

In respect of the Mergers, Marquest is proposing to merge the following Funds:


MERGING FUND

CONTINUING FUND
Marquest Canadian Balanced Fund (Corporate Class) Marquest Monthly Pay Fund (Corporate Class)
Marquest Dow Jones Canada High Dividend 50 Fund (Corporate Class) Marquest Monthly Pay Fund (Corporate Class)
Marquest S&P/TSX Canadian Dividend Aristocrats Fund (Corporate Class) Marquest Monthly Pay Fund (Corporate Class)
Marquest International Income Balanced Fund Marquest Tax Deferred Income Fund
Marquest International Balanced Fund Marquest Tax Deferred Income Fund

These mergers are expected to benefit the securityholders of the merging Funds for the following reasons: (i) it is expected that each proposed merger will reduce duplication and redundancy between the Funds, thereby increasing operational efficiencies; (ii) each continuing fund will have more assets, thereby allowing for increased portfolio diversification opportunities; and (iii) each continuing Fund will benefit from its larger profile in the marketplace. The costs associated with the mergers will be borne by Marquest.

All of the mergers have been reviewed by the Independent Review Committee of the merging Funds which has determined that the Mergers achieve a fair and reasonable result for the Funds.

In connection with the Changes to Investment Objectives, Marquest is proposing to implement changes to the investment objectives of certain Funds which, in the case of the Marquest Tax Deferred Income Fund, includes, among other things, the unwinding and termination of its forward agreement, a change of name to the "Marquest Global Balanced Fund" and the reopening of this award winning fund to new investors, which is to be effective immediately prior to the completion of the corresponding Mergers identified above.

In addition to the Marquest Tax Deferred Income Fund, Marquest is proposing the Changes to the Investment Objectives of Marquest American Dividend Growth Fund (Corporate Class) and Marquest Covered Call Canadian Banks Plus Fund (Corporate Class).

Marquest is also proposing the Consolidation in connection with the Reorganization. Pursuant to the Consolidation, class or series T8 and T-F8 units or shares offered by certain Funds shall no longer be issued and shall be exchanged for class or series A and AA units or shares, as applicable.

Securityholder Meetings

Marquest is proposing to hold special meetings of securityholders of the Funds on July 7, 2014 in connection with the Reorganization. Marquest intends to mail a notice of meeting, management information circular containing information about the Reorganization and forms of proxies to securityholders of the Funds on or about June 16, 2014, copies of which will also be filed on SEDAR.

About Marquest

Marquest provides diversified asset and wealth management for both individuals and institutional investors.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

Contact Information

  • Marquest Asset Management Inc.
    Andrew A. McKay
    President
    416-777-7312