SOURCE: NexGen Financial Limited Partnership

NexGen Financial Limited Partnership

April 16, 2015 10:40 ET

NexGen Financial Limited Partnership Announces Fund Mergers

TORONTO, ON--(Marketwired - April 16, 2015) - NexGen Financial Limited Partnership ("NexGen") is pleased to announce the following proposed changes to two NexGen fund mandates:

Fund Mergers

(a) North American Large Cap Mandate

  • NexGen North American Large Cap Registered Fund ("Large Cap Registered") will merge into NexGen Canadian Dividend Registered Fund ("Dividend Registered"), each open-end funds managed by NexGen.
  • NexGen North American Large Cap Tax Managed Fund ("Large Cap TM") will merge into NexGen Canadian Dividend Tax Managed Fund ("Dividend TM"), each open-end funds managed by NexGen.

(b) Turtle Equity Mandate

  • NexGen Turtle Canadian Equity Registered Fund ("Turtle Equity Registered") will merge into NexGen Turtle Canadian Balanced Registered Fund ("Turtle Balanced Registered"), each open-end funds managed by NexGen.
  • NexGen Turtle Canadian Equity Tax Managed Fund ("Turtle Equity TM") will merge into NexGen Turtle Canadian Balanced Tax Managed Fund ("Turtle Balanced TM"), each open-end funds managed by NexGen.

(collectively the "Mergers")

Each of the Mergers, if approved, will result in a change in the investment objectives for securityholders of Large Cap Registered and Turtle Equity Registered. If the Mergers are not approved, the investment objectives of these Funds will not change.

There will be no change in the effective portfolio management of the Large Cap Registered and Large Cap TM Funds as a result of the Mergers. NexGen, who currently acts as portfolio manager to Large Cap Registered, Dividend Registered, Large Cap TM and Dividend TM, will continue to act as portfolio manager to Dividend Registered and Dividend TM, whether or not the Mergers are approved. 

There will be a partial change in the effective portfolio management of the Turtle Equity Registered and Turtle Equity TM. Specifically, Rondeau Capital Inc. ("Rondeau") currently acts as the sole sub-advisor to the Turtle Equity Registered and Turtle Equity TM and as the sub-advisor to Turtle Balanced Registered and Turtle Balanced TM Funds in respect of equity investments only. J. Zechner Associates Inc. acts as sub-advisor to the Balanced Funds in respect of fixed income investments. The Turtle Balanced TM Fund's investments in equity and fixed income securities are actively managed and each range between 30% and 70% of the funds' assets, depending on Rondeau's assessment of economic and market factors.

The Mergers will be effective on or about June 5, 2015, subject to receipt of all requisite security holder and regulatory approvals. Security holders of Large Cap Registered and Turtle Equity Registered will be provided with an information circular providing details of the Mergers on or about April 30, 2015. A meeting of security holders of those Funds to approve the Mergers will be held on or about June 1, 2015.

"These Fund Mergers, if approved, will transition investors to Funds with a reduced management expense ratio and increased economies of scale while maintaining exposure to the same equity managers," said Jeff Young Co-CEO, CIO of NexGen.

About NexGen

NexGen Financial Limited Partnership is a mutual fund company focused on the creation of innovative investment products and solutions designed to meet the needs of Canadian investors. Using a multi-boutique approach and a focus on tax efficiency, the firm offers a diverse suite of strategies that are well positioned as attractive investment opportunities for Canadians in pursuit of their financial goals.

Forward Looking Statements

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.

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