TORONTO, ONTARIO--(Marketwired - April 11, 2014) - NexGen Financial Limited Partnership ("NexGen") is pleased to announce the following proposed changes to two NexGen fund mandates:
Fund Mergers and Changes in Portfolio Management
(a) North American Small/Mid Cap Mandate
- NexGen North American Small/Mid Cap Registered Fund ("NASMR") will merge into NexGen U.S. Growth Registered Fund ("Growth Registered"), an open-end fund to be established and managed by NexGen
- NexGen North American Small/Mid Cap Tax Managed Fund ("NASMTM") will merge into NexGen U.S. Growth Tax Managed Fund ("Growth Tax Managed"), an open-end fund to be established and managed by NexGen
(b) North American Growth Mandate
- NexGen North American Growth Registered Fund ("NAGR") will merge into the Growth Registered
- NexGen North American Growth Tax Managed Fund ("NAGTM") will merge into Growth Tax Managed (collectively the "Mergers")
JPMorgan Asset Management (Canada) Inc. ("JPMorgan Canada"), a subsidiary of JPMorgan Chase & Co., will act as the sub-advisor to Growth Tax Managed. JPMorgan Canada has appointed its affiliate, J.P. Morgan Investment Management Inc. to provide investment advice to Growth Tax Managed Fund. As Growth Registered will invest substantially all of its portfolio assets in securities and debt of Growth Tax Managed (which will have a similar objective as Growth Registered), all of the active portfolio management will occur within Growth Tax Managed. Accordingly, the Mergers, if approved, will result in a change in the effective portfolio management from NexGen to JPMorgan Canada for security holders of NASMR, NASMTM, NAGR and NAGRM. NexGen will remain as portfolio manager of Growth Registered.
Each of the Mergers, if approved, will result in a change in the investment objectives and strategies for securityholders of NASMR, NASMTM, NAGR and NAGTM. If the Mergers are not approved, the investment objectives and strategies of these Funds will not change.
The Mergers will be effective on or about May 30, 2014, subject to receipt of all requisite security holder and regulatory approvals. Security holders of NASMR, NASMTR, NAGR and NAGRM will be provided with an information circular providing details of the Mergers on or about April 14, 2014. A meeting of security holders of those Funds to approve the Mergers will be held on or about May 9, 2014.
"These fund mergers, if approved, will provide investors access to a world class investment manager and an increased possibility of achieving economies of scale for fund shareholders while also adding another attractive fund option for shareholders within the NexGen corporate class funds," said Jeff Young, Co-CEO, CIO of NexGen.
NexGen Financial Limited Partnership is a mutual fund company and was founded to develop value added investment solutions for financial advisors and their clients. The firm is focused on the creation of innovative investment products and services that meet the needs of Canadians seeking more tax efficient investment opportunities and greater control over the tax treatment of their investments. Managed by strong investment professionals, NexGen's unique Registered and Tax-Managed Fund offerings are well positioned as attractive investment opportunities for Canadians looking to alleviate the tax costs associated with traditional investment solutions.
This release may contain "forward-looking statements" which reflect the current expectations of the Company. These statements reflect management's current beliefs with respect to future events and are based on information currently available to management. Forward-looking statements involve significant known and unknown risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements including, without limitation, those listed under the heading "Risk Factors" in the Company's Management Discussion and Analysis, which is available on the Company's website and on SEDAR at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements contained in this release. Although the forward-looking statements contained in this release are based upon what the Company believes to be reasonable assumptions, the Company cannot assure investors that actual results, performance or achievements will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and the Company does not assume any obligation to update or revise them to reflect new events or circumstances.